National Guard and Reserve Members May Qualify for a VA Home Loan and Most Have No Idea
National Guard and Reserve Members May Qualify for a VA Home Loan and Most Have No Idea
The Misconception That Is Costing Guard and Reserve Members a Powerful Benefit
One of the most common and most costly misconceptions Keith Calabro hears from military members is the assumption that VA home loans are only available to those who have served on full-time active duty. Guard and Reserve members regularly disqualify themselves from one of the most powerful mortgage benefits available before they ever find out whether they actually qualify.
The truth is that many National Guard and Reserve members are fully eligible for VA financing and they simply do not know it.
What Actually Qualifies Guard and Reserve Members for VA Financing
If you have served in the National Guard or Reserves without full-time active duty service the eligibility requirements are specific and worth understanding clearly. Basic training and AIT do not count toward VA eligibility for Guard and Reserve members so the calculation starts from service beyond those initial requirements.
The first path to eligibility is six years of service in the National Guard or Reserves. If you have completed six years of service you may qualify for VA financing regardless of whether that service included active duty deployment.
The second path applies to members who have been deployed. Ninety days of continuous service during a wartime activation qualifies a Guard or Reserve member for VA benefits. For peacetime activations the requirement is 181 days of continuous service with at least 90 days of non-training active duty under Title 10 orders.
As Keith Calabro explains, a military veteran and VA loan specialist himself, the service criteria that qualify Guard and Reserve members for VA benefits are more accessible than most of those members realize. The key is actually checking eligibility rather than assuming the answer is no.
What VA Financing Provides for Eligible Guard and Reserve Members
For Guard and Reserve members who do qualify the VA benefit delivers the same powerful features that make it the best mortgage product available to eligible borrowers anywhere in the market.
No down payment required. The full purchase price can be financed without any money toward the purchase price out of pocket. On a $350,000 home that means the difference between needing $17,500 to $70,000 upfront depending on the loan type and needing effectively nothing for the down payment.
No private mortgage insurance. Conventional loans require PMI when the down payment is below 20 percent and FHA loans require mortgage insurance for the life of the loan in most cases. VA loans require neither. That absence of monthly mortgage insurance saves eligible borrowers hundreds of dollars every single month and represents significant savings over the life of the loan.
Competitive interest rates that are consistently lower than conventional loan rates for the same borrower profile. The government backing behind the VA product reduces lender risk in ways that translate into better pricing for the borrower from day one.
Flexible credit guidelines that are designed to work for the realities of military and veteran financial situations rather than against them.
Before You Assume You Do Not Qualify
The single most important message for any National Guard or Reserve member who has been assuming they are not eligible for VA financing is to stop assuming and start checking. The eligibility determination is straightforward and getting clarity on where you stand takes minutes rather than days.
Keith Calabro is a military veteran and VA loan specialist who checks eligibility for Guard and Reserve members regularly. Send a message with the word VA and Keith Calabro will help you determine whether you qualify and what the VA benefit could look like for your specific situation and homebuying goals.
Sources
VA.gov MilitaryOneSource.mil ConsumerFinancialProtectionBureau.gov NAR.realtor MortgageNewsDaily.com
