Can A Military Retiree Use The Va Loan?

The VA Loan, backed by the Department of Veterans Affairs, is a great benefit that active duty service members and Veterans can use to help with the purchase of a home.

Military retirees are eligible to use the VA Loan and in most cases, satisfy all of the requirements for eligibility. In order to use the VA Loan, service members, and Veterans must meet a minimum time-in-service to be eligible. The time is generally 24 months of consecutive service. To retire from the military, most members need to serve for at least 20 years.

The exception to this rule is when a service member is medically retired. This may be due to a service-connected disability or some other reason. In this case, they might fall under the rules for those discharged from active service due to a service-connected disability. For those discharged due to a service-connected disability, there is no time requirement for being VA Loan eligible.

The nature of your discharge must be Honorable, Under Honorable Conditions, or General. If you received an Other than Honorable, Bad Conduct, or Dishonorable Discharge, you are not eligible for any veterans’ benefits or services. This includes the VA Loan. You can appeal to upgrade your discharge through the military, but this requires a lengthy review process. You may also apply directly to the VA for a Character of the Discharge review process.

Some military retirees may have already used their VA Loan benefits during their time on active duty. If this is the case, they may be able to apply to have their benefits restored and use them again. You will need to have sold or refinanced the property that you initially used your VA Loan to purchase. If you have another eligible Veteran who wants to purchase the home, you may be able to get your loan restored if they assume the existing VA Loan under their own name and eligibility.