Statement Of Service For A VA Loan: Definition And How It Works

If you’re applying for a VA loan, one of the most important documents you may need is a statement of service. This letter tells mortgage lenders about your military service and income.

Depending on your service status, if mortgage lenders don’t have a statement of service, they may not be able to get VA financing for you, the borrower, and it will delay not only the loan process but the home buying process as well.

Let’s take a look at VA loans, why you need a statement of service letter, how to get one and what other documents you’ll need.

What Is A VA Loan Statement Of Service?

A VA loan statement of service is a letter verifying employment history in the military. No standard military form is required for a statement of service, but it does need an official letterhead from your commanding officer. Generally, the letter should include the following information:

• Name
• Date of birth
• Social Security number
• Active-duty dates
• Duration of time lost
• Your total number of years of creditable service (National Guard only)
• Name and signature of commanding officer

A statement of service letter is necessary for current service members as well as present members of the National Guard and reserves. In other cases, discharge paperwork is used. Surviving spouses must qualify for Dependency and Indemnity Compensation (DIC).

Without this information, your mortgage lender can’t process your VA loan application. We recommend reaching out to your commanding officer as soon as you’re ready to buy a home so they’ll have the time they need to complete your letter.

What Is A VA Loan?

VA loans are offered through the U.S. Department of Veterans Affairs and are available for active service members, reservists, National Guard personnel, veterans and their qualifying surviving spouses – although certain eligibility requirements must be met. These home loans are a type of government loan and typically require no down payment and low closing costs.

VA loans also don’t require private mortgage insurance (PMI). Instead, there’s usually a funding fee that can be paid at closing or over the life of the loan. There’s often no standard maximum debt-to-income (DTI) ratio.

Why Do Applicants Need A Statement Of Service Letter?

In the absence of other forms of documentation, this is what many active service members, National Guard personnel and reservists will use to get their Certificate of Eligibility (COE). It can also be used to verify your current employment in the military. It’s important to note that you may need a statement of service letter each time you apply for a VA loan if you apply multiple times. We recommend not getting your statement of service letter until you’re ready to begin house hunting. This way, your letter is up to date.

VA Statement Of Service Letter Vs. Certificate Of Eligibility

A statement of service and COE may sound similar, but they’re different, and you’ll need both throughout the home buying process.

A COE comes from the U.S. Department of Veterans Affairs and provides proof that you’ve met the requirements for the VA loan program. It includes how long you’ve served, discharge status and whether you’re eligible for a VA loan.

On the other hand, a statement of service provides lenders with information they can use to help you apply for your COE. By itself, it doesn’t state your eligibility.

How To Get A Statement Of Service For VA Loans

Since your statement of service needs to come from your commanding officer, the process of getting the statement could take some time. It’s therefore best to reach out as quickly as possible.

The sooner you have your statement of service, the sooner you can get through the application process and home loan selection process to purchase your new home.

Other Documents Needed Beyond Military Statement Of Service

When you go through the mortgage process, your statement of service is just one document that provides proof you can afford a VA loan. If you have any credit issues or gaps in your employment history, you’ll need to provide that documentation along with:

• A copy of a government-issued ID
• 2 years of W-2 forms
• 2 months of bank statements
• Your previous 2 years’ tax returns if you were self-employed
• Investment or retirement account statements

This is all very important when lenders are determining how much home you can afford.

The Bottom Line: You May Need A Statement Of Service For A VA Loan

If you’re serving in the military and eager to make a home purchase, we recommend reaching out to your commanding officer for your statement of service letter. Once you have that documentation in hand, you can move forward with your application.

Then, the next step will be getting approved for a mortgage. When you’re ready, you can get started with Rocket Mortgage^®. You can also give us a call at (833) 326-6020.