VA loans are one of the best benefits military members and veterans (and eligible service members) can get in terms of  financing a new home (or refinances), as they require no down payment and have great terms. However, a lot of people ask if they are eligible for a VA loan based on the military service of your father. VA loan eligibility will be examined in this article, as well as if having a veteran parent makes you eligible for this unique home loan program.
A Guide to VA Loan Eligibility
VA home loan program was established to assist military service members, veterans and eligible surviving spouses with purchasing homes under beneficial loan terms. Funded through the U.S. Department of Veterans Affairs (VA), the program enables lenders to offer veterans and service members loans with lower interest rates that don’t require a down payment or private mortgage insurance (PMI).
VA loan eligibility is strictly limited however and does not in most cases apply to the children of veterans. For an applicant to qualify for a VA loan, one of the following criteria has to be met:
1. A Military Veteran or Active-Duty Service Member
- Served at least 90 consecutive days of active duty during periods of war.
- Served on active duty for at least 181 days during peacetime.
- Completed at least six years in the National Guard or Reserves.
2. Eligible Surviving Spouse
- A spouse of a service member who has died while serving on active duty or from a service-related disability can be eligible for a VA loan.
These criteria indicate that VA loan benefits are for the service member himself or herself or his or her surviving spouse, rather than their child.
Are You Eligible for a VA Loan If Your Father Was a Veteran?
Sadly there is no VA loan benefit awarded to children of veterans just because their parent served in the military. VA loan program is exclusive to service members, veterans and eligible surviving spouses. If your father is a veteran, that alone does not qualify you for a VA loan you need to meet other qualifying criteria as well.
Methods of Qualifying for a VA Loan
While you cannot get a VA loan simply because your father served in the military, there are other ways you may be eligible for this kind of loan:
1. Joining the Military
- You can also qualify for a VA loan in your own right if you are in the military and meet the VA loan service requirements.
2. Marrying an Eligible Veteran
- If you marry someone who’s eligible for a VA loan, you might be able to take advantage of their VA loan benefit as a co-borrower or spouse.
3. They need to have an eligible veteran co-borrowing with them.
- If your father is still living and qualifies for a VA loan, he could co-sign on the loan with you. VA loans are typically for primary residences, though, so this would take special circumstances.
4. Surviving Spouse of a Veteran
- As the surviving spouse of a veteran (not their child), you could be eligible for VA loan benefits, provided that your spouse qualified and that you have not remarried (or remarried after age 57 after Dec, 16, 2003).
Alternative Home Loan Programs for Children of Veterans
If you do not meet the requirements for a VA loan there are still a few home loan choices that could help:
1. FHA Loans
- FHA loans have lower down payment requirements (as low as 3.5%) and are easier for borrowers with lower credit scores to qualify for.
2. USDA Loans
- For those seeking to purchase a home in a rural or suburban area, USDA loans provide 0% down and low-interest financing.
3. Conventional Loans
- Without a doubt, anyone who meets the income, credit score and financial history qualifications can qualify for a conventional loan. They usually come with a low down payment, around 3-5%.
4. State & Local Veteran Assistance Programs
- If veterans are not eligible for VA loans, some states provide special housing assistance programs for their children. (The only way to know for sure is check with local housing agencies.)
Conclusion
In fact, you are not even automatically eligible for a VA loan just because your father served, but this fact does not mean you cannot achieve homeownership. If you have a desire to take advantage of the VA loan program, enlist, marry a qualified vet or seek other home loan solutions. Also investigate programs at the state and local levels that might provide assistance for children of veterans.
If you are ready to buy a home but don’t qualify for a VA loan, You can talk to a mortgage professional who can assist you in identifying the best financing options to meet your individual needs, like Security America Mortgage.