Can a Daughter of a Veteran Get a VA Loan?

The Department of Veterans Affairs (VA) home loan program offers a significant benefit to eligible service members, veterans, and certain surviving spouses, facilitating homeownership. Understanding the specific criteria and unique features of VA loans is important for anyone considering this path to purchasing a home. The program aims to make homeownership more accessible for those who have served the nation.

Eligibility for Dependents

Generally, a daughter of a veteran cannot directly qualify for a VA loan based solely on her parent’s military service. There are limited exceptions where a dependent might benefit from a VA loan. An eligible surviving spouse of a veteran who died as a result of service or from a service-connected disability may qualify for the benefit. Additionally, if the daughter is a veteran herself and meets the VA’s service requirements, she would be eligible for the loan in her own right. While a child can reside in a home purchased with a VA loan by a qualified borrower, the loan benefit itself is not transferable to children.

General Eligibility Criteria

Eligibility for a VA home loan primarily extends to active-duty service members, veterans, National Guard members, and Reservists. Active-duty service members typically become eligible after serving at least 90 consecutive days during wartime or 181 days during peacetime.

For National Guard and Reserve members, eligibility generally requires six years of honorable service. However, specific active-duty periods, such as 90 cumulative days of full-time duty under Title 32 orders with at least 30 consecutive days, can also establish eligibility.

Veterans discharged for a service-connected disability may also qualify, even if they did not meet the standard minimum service duration. A Certificate of Eligibility (COE) is a document that confirms an individual meets the VA’s service requirements for the loan benefit.

Key Features of VA Loans

A significant benefit is the absence of a down payment requirement for most borrowers, allowing individuals to finance 100% of the home’s purchase price. Unlike many conventional loans, VA loans do not require private mortgage insurance (PMI), which can result in lower monthly payments.

The Department of Veterans Affairs guarantees a portion of these loans, which mitigates risk for private lenders and often leads to competitive interest rates.

While the VA limits some closing costs that can be charged to the borrower, a VA funding fee is typically required. This one-time fee helps offset the program’s cost to taxpayers, and its percentage can vary based on factors like loan type, down payment amount, and prior use of the VA loan benefit. Certain individuals, such as veterans receiving VA compensation for a service-connected disability or surviving spouses, may be exempt from paying this fee.

Applying for a VA Loan

The process of obtaining a VA loan begins by confirming eligibility and securing a Certificate of Eligibility (COE). While applicants can apply for a COE directly through the VA, many lenders can assist in obtaining it digitally.

After confirming eligibility, the next step involves finding a VA-approved lender, as VA loans are issued by private financial institutions. The lender will then guide the applicant through the pre-approval process, which involves submitting financial documentation such as bank statements, pay stubs, and tax returns.

Pre-approval determines the maximum loan amount an individual qualifies for, strengthening their position when making an offer on a home. Once a home is identified and an offer accepted, the loan proceeds to underwriting, where the lender reviews all financial details and the property undergoes a VA appraisal to ensure it meets specific safety and value requirements. The final stage is closing, where all necessary documents are signed, and ownership of the property is transferred.