Figuring Out VA Statement of Service in Simple Terms
The US Department of Veterans Affairs (VA) runs a nationwide program where citizens with a military-related special status get beneficial tax deductions and low-interest loans. VA loans offer much friendlier credit conditions and mortgage options, but only for those eligible. This type of loan was developed to accommodate veterans and active military servicemen.
But there are several statuses that can make you eligible. One ultimate thing you’ll need in order to submit for a VA loan is a VA Statement of Service, which is impossible to get without another document called a Certificate of Eligibility. Confused yet? We’ll figure it out, but let’s refresh our basics first.
How Does a VA Loan Work?
A Veterans Affairs loan is a government-backed lending program that offers several features that make it easier to get a mortgage, available to eligible borrowers.
VA loan benefits
- Extra-low or no down payment required: Most borrowers with VA eligibility can purchase a home while putting 0% down, while certain cases may require a less than symbolic down payment.
- Lower credit requirements: VA loans generally have more forgiving credit guidelines and allow lower credit scores than conventional mortgages.
- No necessary PMI: VA loans don’t require Private Mortgage Insurance and, accordingly, the regular handling of monthly payments.
- Lower interest rates: The Veterans Affairs office actively works to reduce interest rates and fees (if any) for eligible VA borrowers.
- Friendlier closing costs: VA loans don’t impose certain fees that apply to most other categories of borrowers.
- No prepayment penalties: VA-eligible borrowers are free to pay off the loan early or make extra payments; no penalties will incur.
- Refinancing options: Eligible homeowners can use VA refinance programs, such as the Interest Rate Reduction Refinance Loan (IRRRL) or cash-out refinance.
- Lifetime benefit: VA loan eligibility is not limited to a single use — if you meet the program’s entitlement requirements over the years, you can reuse the benefit multiple times.
- Foreclosure assistance: The VA offers financial counseling and support, which can help avoid foreclosure in case you’re going through an unexpected financial hardship.
Yet another great indirect benefit you get with VA loans is their safety-inducing government support — you automatically become a less risky borrower profile for lenders. To them, this is a government-insured loan they are issuing, so they’re gold.
Who’s eligible?
There are several categories of military-related citizens that can submit for VA financing:
- Veterans who meet the VA's minimum active-duty service requirements and received a qualifying discharge. The exact service requirement depends on when exactly they served.
- Active-duty service members who have completed the required period of continuous active service (generally at least 90 consecutive days).
- National Guard and Reserve members who meet the VA's eligibility requirements based on qualifying service.
- Eligible surviving spouses of service members who died in the line of duty or from a service-connected disability, as well as certain spouses of service members who are missing in action (MIA) or prisoners of war (POW).
What Else You’ll Need
To receive a VA-backed home loan, borrowers must also:
- Meet the lender's requirements for credit score, income, debt-to-income ratio, and overall financial stability — though VAs are much friendlier, there are still qualifications that lenders will consider.
- Intend to use the property as their primary residence. VA loans are not available for investment properties or vacation homes due to their income-focused nature.
- Obtain a VA Statement of Service and Certificate of Eligibility (COE) from the VA, which verifies their military service and entitlement.
As you can see, you need to prepare two essential documents to back up your VA loan eligibility, which makes it necessary that we make an important distinction:
VA Statement of Service vs. COE
Both the Certificate of Eligibility and VA Statement of Service are necessary to achieve VA loan eligibility. However, each serves a unique purpose:
- COE is the baseline VA loan approval document. It is provided by the Veterans Affairs office after it sees your VA Statement of Service.
- A VA Statement of Service is the legal confirmation of the military service, either active, completed, or reserved, that makes you eligible for loan consideration.
It’s all part of a process — you need a VA Statement of Service first, then you can apply for a COE, get it, and submit for a VA loan. However, there are more ensuing differences:
| VA Statement of Service | VA Certificate of Eligibility |
| Issued by your (or your spouse’s) military command or personnel | Written out by the US Department of Veterans Affairs |
| Confirms that you are currently serving on active duty or in the National Guard/Reserve (or the fact thereof) | Officially confirms that you qualify for the VA home loan benefit. |
| Used primarily to help obtain a COE if you are still serving and don’t yet have discharge papers (DD Form 214) | Required by lenders before they can finalize a VA-backed mortgage. |
| Lists personal details:full namesocial security numberdate of birthdate of entry into serviceduration of any lost timethe command issuing the statement | Shows your official VA loan entitlement and eligibility status. |
| Must be signed by your commander, adjutant, or personnel officer on official military letterhead. | Can be requested online through the VA, by mail, or through a VA-approved lender. |
For example, if you're an active-duty service member applying for a VA loan, you'll first obtain a Statement of Service from your command. You (or your lender) then submit that document to the VA to request your Certificate of Eligibility. Once the VA verifies your service, it issues the COE, which your lender uses to process your mortgage application.
One important point is that a COE doesn’t guarantee loan approval. It only confirms that you meet the VA's military service requirements. Your lender will still evaluate your financial qualifications before approving the mortgage.
How to Get a VA Statement of Service?
One common complication when applying for a VA-backed mortgage is that there is no standard form that you can simply take, fill out, and submit. The VA Statement of Service will be filled out by the commanding officer at the location of your military employment. However, different lenders may require specific details that an officer can easily miss. So it’s important to actualize all the required information with the lender beforehand.
How LBC Mortgage can help you
Don’t have time to actualize all the info requirements yourself? Let seasoned experts at LBC Mortgage handle all the details and personalize your VA loan experience to match your exact needs, credit status, and mortgage expectations.
