The VA Loan allows military members and those who served in the military to purchase a home without the requirement for a down payment. Typically, a lower down payment adds the requirement for Private Mortgage Insurance, which can be costly. But the VA Loan does not include this extra cost.
While the VA Loan does require some extra steps and paperwork, removing the requirement for a sizable down payment without adding the cost of Private Mortgage Insurance, PMI, to the monthly payment is a huge benefit that military members earn.
In order to be eligible for the VA Loan, a service member must have served on Active Duty after September 16, 1940. The VA Loan began as part of the post-World War II GI Bill. When other GI Bill benefits, such as tuition for education, changed to the GI Bill in place today, the mortgage benefits remained as part of the VA Loan program.
The specific amount of time that you need to have served varies based on when you were in the military. Veterans who served during World War II, the Korean War, and the Vietnam War need at least 90 days of continuous service to be eligible for the VA Loan. Those who served outside of these times need between 180 and 24 months of continuous service. The exact amount varies based on the time that they served as well as if they were an officer or enlisted in some cases.
The time requirement also changes if you have a service-connected disability. For those who served less than the required time and left the military because of a reduction in force or hardship may also have the time requirement waived. National Guard members and military Reservists can be eligible for the VA Loan based on the time that they spent activated as well as when they served.