In addition to length of service, another important aspect that determines a military member’s eligibility for a VA loan is their character of discharge. Below, we’ve discussed VA loan requirements and how they pertain to one’s discharge status.
How Does My Discharge Status Affect My Eligibility?
For many military members, there comes a point in time when they have to part ways with their career. There are several reasons why individuals might choose to leave the military even if they love serving such as family considerations, career opportunities, education, or their physical or mental health.
That being said, service members should be aware that their discharge status can impact their VA loan eligibility. Here’s a quick explanation of applicable VA loan requirements:
Honorable and General Discharges
Service members who receive an honorable or general discharge are typically eligible for VA loan benefits. An honorable discharge indicates that a service member fulfilled their duty with favorable assessments, while a general discharge might indicate satisfactory service with certain minor issues.
Other Than Honorable (OTH) Discharges
Veterans with an OTH discharge may have difficulty accessing VA benefits, including VA loans. This type of discharge usually requires further review by the VA, and eligibility is not guaranteed.
Bad Conduct and Dishonorable Discharges
These discharges, often the result of a court-martial, generally make Veterans ineligible for VA loans and other VA benefits.
What to Do if You Don’t Meet Discharge Requirements
If you’ve been told that you don’t meet VA loan requirements based on your discharge status, there are several steps you can take to address the situation. Here’s a recommendation of how to proceed:
- Verify Rejection Reason: Make sure the denial is due to discharge status.
- Check Your Documents: Review your DD Form 214 for accuracy.
- Apply for a Discharge Upgrade: Submit an application through your service branch’s Discharge Review Board with supporting evidence.
- Request a Character of Service Determination: If upgrading isn’t feasible, ask the VA for a character of service determination.
- Seek Assistance: Contact Veterans’ organizations for help.
- Reapply if Successful: If your status improves, reapply for the loan.
- Explore Other Loans: Look into alternative financing like FHA loans.
Learn More About VA Loan Requirements
If you have questions about VA loan requirements, whether they’re related to the character of discharge or something else, remember we’re always here to help. Call today to speak to a member of our staff. We will be more than happy to discuss your concerns in detail and help you find the loan option that is right for you. Call now to get in touch!
