VA loans are an entitlement for those who are eligible. Those with military affiliation may typically enjoy zero down, 100% refinancing and no private mortgage insurance associated with VA loans. These among many other benefits unique to VA loans make this mortgage program hard to beat.

Of course, there are certain military service requirements that need to be met before someone can be considered for a VA loan. Generally speaking, WWII, Korean War, and Vietnam War veterans must have at least 90 days of active duty. Those who served during peacetime periods, between and/or after these wars, must have at least 181 days of continuous active duty.

Enlisted persons who served after September 7, 1980 and officers who served after October 16, 1981 must have completed 24 months of continuous active duty or the full period for which they were ordered (at least 181 days). Gulf War veterans from August 2, 1990, must have completed 24 months of continuous active duty or the full period for which your were ordered (at least 90 days). Current active duty military personnel are eligible after 181 days of service.

Selected Reserves or National Guard personnel may also be eligible for VA loans if they have completed 6 years of service.

Honorable discharges and/or discharges for service-connected disabilities are taken into consideration if the duration of service requirements are not met. Those widowed by veterans who died while in service or from service-connected disabilities and spouses of MIAs or POWs may also be eligible.

For applications involving military discharges that are other than honorable, the VA determines eligibility on a case-by-case basis.

A potential borrower needs to obtain a Certificate of Eligibility in order to apply for a veterans' mortgage. The Certificate simply proves that a person is eligible for VA loans and lets the lender know how much entitlement he or she can receive.

To request a Certificate of Eligibility from the U.S. Department of Veterans Affairs, one must complete VA Form 26-1880. The complete form along with proof of service provides the VA with pertinent information to determine eligibility. VA Form 26-1880 is a one-page document that asks for name, address and contact information. It also asks for military service data, which must be accompanied with proof of service.

Acceptable proof of service is considered to be an original statement of service signed by a personnel officer, commander, or higher headquarters which identifies the applicant and his or her social security number and shows the date of entry for active duty and duration of any time lost. Those discharged from regular active duty after January 1, 1950 need a photocopy (not original) of DD Form 214, Certificate of Release or Discharge from Active Duty included with the VA Form 26-1880. Those discharged after October 1, 1979 need to include carbon copy labeled (4) of DD Form 214.

The final section of VA Form 26-1880 asks about previous VA loans (if any) for which the applicant may have used his or her entitlement. Since there is a maximum VA loan entitlement for each individual, this section helps the VA determine what the VA loan guaranty "balance" is for someone who already has a VA loan. In some cases, an applicant may meet all the eligibility requirements for VA benefits, but has maximized the individual guaranty entitlement and must therefore seek another type of loan such as FHA or conventional.

Entitlement amounts are determined based on where the property is, geographically. For most U.S. counties, the 2009 maximum VA loan guaranty is $417,000. However, there are unique county "loan limits" that have been established for VA loans over $417,000 in certain areas where the cost of living is higher.

The VA Form 26-1880 is accompanied by complete instructions and may take only a few minutes to fill out if the applicant has gathered the proper documentation. Completed forms are to be submitted to the Department of Veterans Affairs Eligibility Center at P.O. Box 20729 in Winston-Salem, North Carolina 27120. Blank forms and instructions can be found online at http://www.vba.va.gov/pubs/forms/vba-26-1880-ARE.pdf.

A Certificate of Eligibility may also be obtained by asking a mortgage specialist for assistance through an online program called ACE, which stands for Automated Certificate of Eligibility. Most VA-approved lenders have access to this system that can establish eligibility and issue a Certificate of Eligibility online in a few seconds. In order to get results with ACE, the borrower must be in the system.

VA-eligible borrowers should consider the VA Loan Guaranty Program when considering home purchases or refinances. After comparing mortgage loan programs, many VA-eligible borrowers find this to be the most beneficial among them.

For the latest information on VA loan eligibility, veterans can visit the U.S. Department of Veterans Affairs website's page on eligibility.