Can I refinance a VA loan to a conventional loan with a low credit score?

Yes, but most conventional lenders want at least a 640 score. If your score is below that, you could still qualify at some lenders, though you may face higher rates or tougher terms. Aim to boost your credit first, if possible, to unlock more favorable interest rates and better overall loan conditions.

Does refinancing from a VA loan to a conventional mortgage require a down payment?

Refinancing generally focuses on replacing your existing mortgage rather than making a new purchase. While no down payment is needed for a simple rate-term refinance, you must meet equity requirements. If you have under 20% equity, you could face private mortgage insurance (PMI), but you won’t need a new down payment to refinance.

Will I lose my VA entitlement after I refinance to a conventional loan?

Once your VA loan is paid off through the refinance, your entitlement can be restored in most cases. This means you’re free to use the VA benefit again for a future home purchase. Always confirm with the VA or your lender to ensure your entitlement is fully reinstated after the refinance process is complete.

How much equity do I need to avoid PMI when refinancing to a conventional loan?

You typically need at least 20% equity in your home to skip private mortgage insurance. A fresh appraisal determines your loan-to-value (LTV) ratio. If your home’s assessed value pushes your equity above that 20% mark, you can remove or avoid PMI altogether, potentially lowering your monthly payment and long-term costs.

What if my credit score has improved since I got my VA loan?

If your FICO score is significantly higher than when you first secured the VA loan, you might qualify for a better interest rate on a conventional refinance. Lenders often reserve their most competitive rates for borrowers with strong credit profiles. Improving your credit could make refinancing more cost-effective in both the short and long run.

Does my property need another appraisal when refinancing from VA to conventional?

Yes, most conventional lenders will require a new appraisal to confirm the home’s current market value. This helps determine whether you have sufficient equity to refinance and whether you’ll need to pay private mortgage insurance. A favorable appraisal can also improve your loan terms by pushing you above that key 20% equity threshold.

Is cash-out refinancing available if I switch from a VA loan to a conventional loan?

Absolutely. Conventional loans typically offer cash-out refinances, allowing you to borrow against your home’s equity. While VA cash-out refinances are also an option, some borrowers prefer the flexibility of conventional guidelines—especially if they’ve built substantial equity or plan to use the VA benefit on another property in the future.

How long does it take to refinance a VA loan into a conventional mortgage?

The timeline usually ranges from 30 to 45 days, depending on factors like appraisal scheduling, underwriting backlogs, and how quickly you submit required documentation. A straightforward refinance with a good credit score, low debt-to-income ratio, and sufficient equity might close faster, while unique financial situations could extend the process.

2025 VA Service Requirements

A VA home loan is one of the most valuable benefits available to eligible service members, veterans, and qualifying spouses.

With no down payment, competitive interest rates, and no private mortgage insurance (PMI), it’s an excellent way to become a homeowner.

However, not everyone qualifies. To obtain a VA-backed mortgage, you must meet specific service requirements based on when and how you served.

Check VA Loan Rates and Get Pre-Approved

VA Loan Eligibility Calculator

Who is Eligible for a VA Loan?

To qualify for a VA loan, applicants must meet specific service and eligibility criteria established by the Department of Veterans Affairs. These requirements depend on length of service, duty status, and discharge conditions.

General Service Requirements for VA Loan Eligibility

90 consecutive days of active duty during wartime.
181 consecutive days of active duty during peacetime.
6 years in the National Guard or Reserves, or 90 days under Title 32 orders (with at least 30 consecutive days served).
Veterans: Must have completed the required active-duty service and received a discharge other than dishonorable.
Active-duty service members: Currently serving personnel may qualify based on service duration.
National Guard & Reserve members: Eligible with six years of service or at least 90 days of active-duty service during wartime.
Surviving spouses: Spouses of service members who died in the line of duty or from a service-related injury may be eligible for VA loan benefits.

Why VA Loan Service Requirements Matter

The VA loan program exists to make homeownership more accessible to those who served in the military. However, not all veterans qualify automatically.

As the Department of Veterans Affairs states:
“To use VA home loan benefits, you must meet service requirements and obtain a Certificate of Eligibility (COE), confirming your qualification.”
(Source: VA Home Loan Eligibility)

By understanding VA loan service requirements, you’ll know if you qualify and how to apply for your COE, ensuring a smoother home-buying experience.

Minimum Active-Duty Service Requirements for a VA Loan

To qualify for a VA home loan, you must have served a minimum period of active duty. The length of service required depends on when you served:

Service Period	Minimum Active-Duty Requirement
After August 2, 1990 (Gulf War – Present)	24 continuous months OR at least 90 days if discharged for hardship, reduction in force, or service-connected disability.
Between September 8, 1980 – August 1, 1990	24 continuous months OR full period you were called to active duty (at least 181 days).
Between May 8, 1975 – September 7, 1980	181 continuous days.
Between August 5, 1964 – May 7, 1975	90 total days (Vietnam War era).
Before August 5, 1964	181 continuous days of service.

🔹 Exception: If you were discharged due to a service-connected disability, the time requirements may not apply.

For the full breakdown, visit the VA Home Loan Eligibility page.

Discharge Characterization and Its Impact on VA Loan Eligibility

Your discharge status can impact your VA loan eligibility.

Honorable Discharge → Eligible for full VA loan benefits.
General (Under Honorable Conditions) Discharge → Eligible for VA loans.
Other Than Honorable (OTH) Discharge → May require review by the VA to determine eligibility.
Bad Conduct (BCD) or Dishonorable Discharge → Typically not eligible for VA loans.

Can I Get a VA Loan with an OTH Discharge?

Yes, some veterans with an Other Than Honorable (OTH) discharge can still qualify. You can apply for a Character of Discharge review, where the VA assesses your service circumstances to determine if you qualify for a VA-backed mortgage.

🔹 Need a Discharge Upgrade? Learn more at VA Discharge Upgrade.

VA Loan Eligibility for National Guard & Reserve Members

If you served in the National Guard or Reserves, you must meet additional requirements to qualify for a VA home loan.

How National Guard & Reserve Members Qualify

Type of Service	VA Loan Eligibility Criteria
Activated Under Title 10 Orders	Eligible (90+ days of active service).
Title 32 Service (State Activation)	Eligible ONLY IF you served at least 90 consecutive days, with 30 of those days being active-duty orders.
6 Years in Selected Reserves/National Guard	Eligible if honorably discharged, placed on the retired list, or transferred to Standby/Ready Reserve.

🔹 If you are unsure about your activation type, check your DD-214 or NGB-22 and confirm with a VA loan officer.

For more details, visit VA National Guard Benefits.

How to Apply for a VA Home Loan Certificate of Eligibility (COE)

Before getting a VA mortgage, you need a Certificate of Eligibility (COE), which proves you meet VA loan requirements.

Ways to Get a COE:

Apply Online: Use the VA’s eBenefits portal.
Through a Lender: Most VA-approved lenders can request it on your behalf.
Mail a Paper Application: Submit VA Form 26-1880 to the VA Loan Eligibility Center.

The Bottom Line

VA loans provide zero down payment, competitive rates, and no PMI, making them an affordable path to homeownership. However, meeting VA service requirements is essential.

Whether you’re active-duty, retired, or a National Guard/Reserve member, knowing the eligibility rules, discharge requirements, and required service periods will ensure a smoother home-buying process.

To qualify, check your DD-214 or NGB-22, apply for a Certificate of Eligibility (COE), and work with a VA-approved lender. If you don’t qualify due to discharge status, consider a discharge upgrade. By understanding these requirements upfront, you’ll increase your chances of loan approval and homeownership success.

Frequently Asked Questions

Can I get a VA loan with less than 90 days of service?
Possibly. If you were discharged for a service-connected disability, you may qualify even with fewer days of service. Always check with the VA or a lender to confirm.

Do I need perfect credit to qualify for a VA home loan?
No. The VA doesn’t set a minimum credit score, but most lenders require at least a 620 FICO score for approval.

Can surviving spouses qualify for a VA home loan?
Yes, certain surviving spouses qualify. Check the VA Surviving Spouse Home Loan Benefits page for eligibility criteria.

Are there VA loan limits?
No. As of 2020, VA loans no longer have loan limits for those with full entitlement. Your loan amount depends on your lender’s approval and affordability.

Can I get a VA loan if I had a bankruptcy or foreclosure?
Yes. Veterans may qualify for a VA loan after 2 years following a Chapter 7 bankruptcy or 12 months of on-time payments in a Chapter 13 case. For foreclosures, a 2-year waiting period typically applies.

Do VA loans require private mortgage insurance (PMI)?
No. One of the biggest advantages of VA loans is that they don’t require PMI, saving borrowers thousands of dollars over time.

Can I use a VA loan to buy investment property?
No. VA loans are intended for primary residences only. However, you can buy a multi-unit property (up to four units) if you live in one unit.

Can I have more than one VA loan at a time?
Yes. If you haven’t used your full entitlement, you may qualify for a second VA loan while still owning another VA-financed home.