What Is a VA Loan Statement of Service and Why Do You Need It?

As of 2024, VA loans have helped more than 24 million veterans buy homes in the USA. To get these loans, veterans need a document called the VA loan statement of service (SOS).

The SOS helps veterans get loan approval quickly. It shows their military service and finances, so they qualify for benefits like lower rates and no down payment.

Having a good financial partner during the VA loan process is important. Houzeo connects you with lenders who know the process well. They can help you get the best terms for your financial situation.

What Is a Statement of Service for VA Loans?

A Statement of Service is crucial when applying for a VA loan. It serves as official verification of your military service record.

The Statement of Service includes the following:

• Your full name and Social Security number
• Date of birth
• Branch of service in which you served
• Your rank or pay grade
• Dates of active duty service
• Any periods of lost time during service
• Type of discharge (honorable, general, etc.)
• Eligibility status for re-entry into the military
• Name and signature of the authorizing official

There is no fixed or standardized Statement of Service format. It simply needs to be presented on official letterhead and contain the required details.

Why Do You Require a Statement of Service for a VA Loan?

When you apply for a mortgage, lenders check your income to ensure you can make the mortgage payments. They need to see that you have a steady income.

Military service members applying for VA loans need a Statement of Service. This document helps mortgage lenders to:

• Confirm your job status and VA benefits eligibility
• Calculate your total household income, including base pay and allowances
• Assess the stability of your military pay
• Determine if your income qualifies you for the loan

Without this document, it is very hard for lenders to decide if you qualify for the mortgage and how much you can afford. Active duty members need to show 12 months of income, while civilian borrowers need 24 months.

How to Get Your Statement of Service?

To get the statement of service letter follow the steps below:

1. For Active Duty Service Members:

• Commanding Officer (CO): Reach out to your CO in advance, as processing times can vary depending on your branch. Be clear about what information you need included in the letter.

2. For Veterans:

If you’re no longer on active duty, you have the following options:

• Defense Personnel Records Information Retrieval System (DPRIS): Request your DD-214/ Statement of Service online through DPRIS. It has the details needed for your loan application.
• National Archives: If you were discharged before the late 1990s, the National Archives has your service documents. Contact them to get a copy.

Other Documents Needed for VA Loan Approval

In addition to your Statement of Service, lenders need the following documents to check your financial status:

• 2 most recent W-2s and tax returns
• 2 most recent bank statements for checking savings accounts
• Most recent statements for any investment/retirement accounts
• Source of funds documentation for down payment and closing costs
• Letters of explanation for any gaps in employment or other financial issues
• Certificate of Eligibility

VA Statement of Service vs. Certificate of Eligibility

Both documents are crucial to verify your military service, but they serve different purposes in the VA loan application process. Here’s how they differ:

Feature	VA SOS	Certificate of Eligibility (COE)
What it is?	Verifies your military service history	Confirms your eligibility for the VA loan program
What does it show?	Shows details like service dates, branch, and discharge status	Shows you meet requirements to get a VA loan
Issued by	Commanding Officer (active duty) or DPRIS (veterans)	Department of Veterans Affairs (VA)
Required for	Active duty service members and veterans applying for a VA loan	Veterans applying for a VA loan
Format	Letter on official letterhead	Official VA document

What Are the Reasons You May Not Qualify for a VA Loan?

VA loans have flexible requirements, but there’s no guarantee you’ll be approved. Even with a Statement of Service, you can get denied for the following reasons:

1. Low Credit Score: A credit score below 620 may make it difficult to qualify for a VA loan through most lenders. While the VA itself does not set a minimum credit score requirement, lenders have their own standards.
2. Higher DTI: The VA looks at your residual income (money left after paying debts) rather than a debt-to-income ratio. However, lenders still have DTI limits mostly 41%. If yours is too high, you may not qualify until you’ve paid down some debt.
3. Low Income: Your household income needs to support the loan amount you have requested. Lenders use DTI ratios but also evaluate your income independently. Those with lower incomes may be limited in the size of loans they can obtain.
4. Minimum Service Requirements: You need 24 months of consecutive service or 90 days of wartime service to qualify for a VA loan.
5. Property Standards: The property must meet Minimum Property Requirements (MPRs) for safety, sanitation, and structural integrity.

If any of these issues apply to you, your lender can help you resolve them during the mortgage pre-approval process. With some adjustments, you may be able to qualify.

Bottom Line

If you qualify for a VA loan, getting your Statement of Service (SOS) is important. As an active duty service member, ask your commanding officer for it early. If you’re a veteran, use the DPRIS system or National Archives to obtain this document

Once you have your SOS, work with a lender who knows VA loans well. They will guide you through the loan process smoothly. Houzeo can connect you with trusted lenders specializing in VA loans, so you can get all the benefits.

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Frequently Asked Questions

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