Honorable Discharge

• In order to be eligible for a VA mortgage loan, you have to have an other than dishonorable discharge. To verify the conditions of your discharge, call your local VA office and request a copy of your discharge paperwork and DD-214 form.
  
  You also need to be in the military on active duty for at least three months (90 solid days) in order to be considered for a VA loan. A veteran who became disabled inside of that time period due to his service to the country might also be eligible.
  
  

Certificate of Eligibility

• Once you have determined that you are able to apply for a VA loan, you have to get what is called a certificate of eligibility. The bank that you choose to do business with can retrieve your certificate through a system called Automated Certificate of Eligibility (ACE) or you can request it yourself directly from the VA. In the latter case, download Form 26-1880 from the VA website or get one from your local VA office. Either way, the lender needs to have this form in hand to process your loan.
  
  

Entitlement Amounts

• You are generally guaranteed for up to $36,000 worth of a home. If you buy a house that costs more than $144,000, you may be eligible for an additional amount that is determined by the county in which you live (see "Pre-loan FAQ in Resources).
  
  

Credit & Other Considerations

• Even though you may be eligible for a VA loan, you still have to pass the mortgage lender's requirements regarding credit. Because VA loans are guaranteed by the government, the lender is likely to be more lenient than usual regarding credit score. You generally need to have a score of at least 580 in order to be approved for a VA score. The higher your credit score past that minimum, the better your interest rate will be.
  
  You also need to have adequate income, as defined by the lender, in order to be approved for a VA mortgage loan. Your employment history and income for the past two years must be verified.
  
  Another benefit of the VA loan is that you are not required to put a down payment on the property. A smart strategy would be to use any money that you have saved up toward paying down your existing debt, which will improve your credit score and get you a better rate.