To be eligible for VA loans, veterans must have a valid Certificate of Eligibility, sufficient income and suitable credit, according to the Veterans Administration. In addition, the loan must be used for buying or building a home or making improvements on the home.
Only veterans discharged on favorable terms are eligible for VA loans; dishonorable discharge prohibits the approval of a loan. The service requirements established by the VA must also be met. The spouses of veterans may also be eligible for VA home loans if they are un-remarried spouses of veterans who died during service, who sustained a service-related disability, or who is a prisoner of war or was declared missing in action.