Whats Is a VA Loan Statement of Service?

When applying for a VA home loan, the statement of service letter is one of the essential documents you need to possess. It provides lenders with the required details about your military service status and also enables your income verification. If you do not have the VA loan statement of service letter, you will not be able to obtain a VA loan due to delayed receipts that come from not having this letter. In this expert guide, we will be explaining what a statement of service letter is, what it does, its importance, and how to write the service letter expertly.

The VA Statement of Service Explained

The VA statement of service for a VA loan is a letter that ascertains a military service member’s present or past employment in the military. It is a unique form and one of the employment verification options required in the mortgage process of obtaining a VA home loan. The letter contains vital information that mortgage lenders require, including pay rate, service dates, discharge status, and other information. It is a supplement to your Certificate of Eligibility and personal information.

Why is a VA Loan Statement of Service for a VA Loan Required?

The statement of service letter is required to help lenders assess how much you earn and determine if you qualify for a loan and the loan amount. Income verification is a crucial step when you apply for VA loans and the statement of service letter provides this detail. If you are still working active duty in the military, mortgage lenders will seek 12 months of guaranteed income, compared to the 24 months of proof pay they require from non-military members. Your statement of service will indicate information about other pays if you have one and the time duration expected to receive them. All in all, the statement of service letter is required to help lenders ascertain if you qualify for a VA loan and also process your loan.

When is a VA Loan Statement of Service for a VA Loan Required?

You will be required to generate a statement of service letter when:
  • You are less than 12 months on the ETS date to indicate that you’re eligible to reenlist and when you have no re-enlist restrictions.
  • Your Certificate of Eligibility is not available online and it is required to request the COE from VA.
  • You are using a reservist’s pay which would indicate how many drills the borrower has participated in if you participated in annual active duty for training (occasionally two weeks and one weekend per month), and your active reservists training with units all through the year.
  • You are using other pay differently from BAH, Base, and BAS. Proof pay will continue after a 12-month plus closing.

What a VA Loan Statement of Service for VA Loan Includes

Certain prerequisites need to go into the statement of service letter. The following information should be included in a typical statement of service letter:

Official Letterhead

A military letterhead helps show that your letter is directed from someone in the military who is aware of your service. If your service letter does not come with a letterhead, there is no way lenders can determine if you served and your ability to come to terms with the VA loan requirements. Your commanding officer can provide you with an official letterhead when forming your statement of service letter.

Date

The date on which the statement of service letter is drafted and signed must be included. This is legally termed a dated signature and it is signed by both you and your commanding officer. Also, your service rank date must be entered in the service letter.

Relevant Information

Your commanding officer will provide details of your date of birth, active duty current date, current deployment, rank, separation date, and other relevant information that pertains to your service. Your statement of service letter should also contain any additional military-related income sources such as flight pay, special duty pay, and parachute play. It should also include your discharge status and state your ability to re-enlist should you desire reenlistment. Each piece of information stated in your statement of service letter is used to further validate your eligibility to obtain VA home loans. Here is a list of some of the relevant information that should be included in your VA Statement of service letter:

Name of Service Member

The service member is commonly used to mean an active member of the armed forces, including the National guard, or a person who is separated from military service in the past 18 months due to discharge, retirement, or another kind of separation. Your name as a service member is one of the vital information that must be included in your statement of service letter

Social Security Number

Your social security is another relevant piece of information that must be included in your statement of service. The SSN is your unique identity as a citizen of the United States and it helps lenders with your VA loan process.

Date of Birth

To tell your current age, your date of birth is required in your statement of service letter.

Branch of Service

The branch of service tells which area you are currently serving or serving. Whether you served in the Air Force, Marine Corps, Army, Navy, Coast Guard, or the Space Force, your branch of service must be included in your letter.

Active-Duty Service

Information about your full-time job completion is required in your service letter.

Expected Discharge or Release Date

The time frame to indicate when your active duty service will come to an end is included in the statement of service letter. It is generally referred to as your expected discharge or release date.

Expected Character of Discharge: Honorable

Your mode of discharge plays a huge role in enabling you to secure a VA home loan. One essential criterion is that you are honorably discharged. When stated otherwise, it hampers your success in obtaining a VA loan.

Decorations, Medals, Badges, Citations, and Campaign Ribbons 

Every medal, badge, citation, and decoration accorded to you during your service goes a long way to stimulate your VA loan application when included in your statement of service. It is another important piece of information to be included in your service letter.

Military-Related Sources of Income 

Your service letter is expected to include other military-related sources of income such as parachute pay, special duty pay, and flight pay.

Commander Information Contact

The contact of your commanding officer should be included when drafting your service letter. This is required in case of further verification and some necessary updates regarding your service.

VA Loan Statement of Service Letter Checklist

Aside from the above-listed requirements, there is other vital information that checks your statement of service letter. The checklist includes:
  • Letterhead
  • Date
  • Borrower’s Full Name
  • Date of Birth
  • Social Security Number
  • Rank
  • Branch of Service
  • Date Entered on Active Duty
  • Unit of Assignment and Current Duty Station Duration
  • Duration of Time Lost
  • Current Separation Date
  • Last Discharge
  • If Reserves, Whether Borrower is Active or Inactive Status
  • Whether Flagged or barred From Continued Service
  • If Eligible to Reenlist
  • Other Pay Amounts
  • Signature and Title of Signer

Conclusion

A detailed statement of service letter can help you accelerate your application for VA loans. The service letter doesn’t follow a particular format, but it must include all relevant information required to validate your service duty. At Security American Mortgage, we help ensure you have all the detailed documents to enable your VA home loan application prompt. Contact us for more inquiries regarding your statement of service letter and applying for VA home loans.