Traditional and Technician National Guard and Reserve members typically serve one weekend a month and two weeks a year, and are eligible for some VA benefits. Serving on active duty under Title 10 or full-time National Guard duty under Title 32 may qualify you for additional VA benefits, through VA disability calculator
A state or territory’s governor may activate certain National Guard members for State Active Duty, such as in response to a natural or man-made disaster. State Active Duty is based on state law and funding and does not qualify as active duty for VA benefits. However, National Guard members may also qualify for additional benefits through their state. Contact your state’s Veterans agency office for more information.
- What are Some National Guard and Reserve Benefits?
- How does VA Loans for National Guard and Reserve Members work?
- Do National Guard members Qualify for VA Loans?
- What Qualifies you for a VA Loan?
- How Spouses can Obtain their COE
- Are National Guardsmen Considered Veterans?
- How many points does a Reservist need for a VA loan?
- Is every Military Person a Veteran?
- Can a Veteran be Denied a VA Home Loan?
What are Some National Guard and Reserve Benefits?
1. Home Loans
VA Home Loan benefits help Servicemembers and Veterans purchase, retain, or adapt a home. National Guard and Reserve members may qualify for a VA-guaranteed home loan by meeting one of the following conditions:
Read Also: How to get Pre-approved for a Va Home Loan
- Six years of service in the Selected Reserve, AND
- Were discharged honorably, OR
- Were placed on the retired list, OR
- Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable, OR
- Continues to serve in the Selected Reserve longer than six years, OR
- Served for 90 days or more on active duty during a wartime period, OR
- Were discharged or released from active duty for a service-connected disability
2. Education
VA Education benefits provide financial support for undergraduate and graduate degrees, vocational and technical training, licensing and certification tests, apprenticeships, and on-the-job training. Traditional and Technician National Guard and Reserve members may be eligible for the Montgomery GI Bill-Selected Reserve (MGIB-SR). Eligibility requirements for the MGIB-SR include:
- A 6-year obligation to serve in the Selected Reserve, AND
- Having completed Initial Active Duty for Training, AND
- Having served in a drill unit and remain in good standing, AND
- Having a high school diploma or equivalency
Additional VA education and training benefits are available to National Guard and Reserve members who served on active duty or full-time National Guard duty.
3. Life Insurance
VA Life Insurance programs consider the extra risks involved in military service to provide you and your family with added financial security at competitive rates. Each of the following insurance programs has different eligibility requirements; however, coverage enrollment is automatic for SGLI, FSGLI, and TSGLI.
Servicemembers’ Group Life Insurance (SGLI)
- National Guard or Reserve member scheduled to perform at least 12 periods of inactive duty training per year OR
- Individual Ready Reserve member who volunteers for a mobilization category
Veterans’ Group Life Insurance (VGLI):
- Servicemember separating, retiring, or being released from Reserve or National Guard assignment and already covered by SGLI OR
- Change text of second bullet to: National Guard or Reserve member covered by part-time SGLI who incurred a disability or aggravated a pre-existing disability while performing inactive duty training or traveling to/from duty OR
- Member of the Individual Ready Reserve or Inactive National Guard
Family Servicemembers’ Group Life Insurance (FSGLI)
- Spouse or dependent child of an active duty Servicemember covered by full-time SGLI, OR
- Spouse or dependent child of a member of the National Guard or Reserve of a uniformed service covered by full-time SGLI
SGLI Traumatic Injury Protection (TSGLI)
- Member of the uniformed services and have SGLI, OR
- Suffered an injury that resulted in a qualifying loss between October 7, 2001 and November 30, 2005
4. Disability Compensation
Disability compensation is a monthly tax-free benefit paid to Veterans who are at least 10% disabled because of injuries or diseases that occurred or were aggravated during active duty or active duty for training. VA also pays Disability Compensation for disabilities from injury, heart attack, or stroke that occurred during inactive duty training. The disability must not be a result of your own willful misconduct, or alcohol or drug abuse.
Veterans with a service-connected disability may also quality for other benefits, including: Automobile Allowance, Clothing Allowance, and Specially Adapted Housing (SAH) or Special Home Adaptation (SHA) Grant.
5. Vocational Rehabilitation and Employment (VR&E)
VA provides vocational counseling, job-search assistance, and other education and training services to certain Veterans with a service-connected illnesses or injuries.
Learn more about VA’s employment services for Veterans with service-connected disabilities.
6. Burial
VA provides memorial services and allowances to help reimburse burial costs for a Veteran and/or his or her dependents. Burial benefits include burial at a national cemetery, an inscribed headstone, marker, or medallion, an allowance to partially reimburse the burial and funeral costs of a Veteran, a Presidential Memorial Certificate, and an American flag to drape over a Veteran’s casket.
Eligibility requires that the Veteran was serving on active duty, or his/her death was due to an injury or disease that developed during or was aggravated during, active duty, active duty for training, or inactive duty training.
How does VA Loans for National Guard and Reserve Members work?
Reservists and members of the National Guard have access to the VA home loan program. But some may need to meet different eligibility criteria in order to be approved for a VA home loan, specifically in regards to the time in service requirements.
Some Reservists and Guardsmen who’ve served at least 90 consecutive days of active duty since Aug. 2, 1990, may be eligible for a VA loan. Otherwise, Guard and Reserve members and veterans typically need at least six years of service and meet these other requirements:
- Was discharged honorably, OR
- Was placed on the retired list, OR
- Was transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable, OR
- Continues to serve in the Selected Reserve.
For those members who meet the above requirements, your first step towards achieving the dream of homeownership is applying for the Certificate of Eligibility. Unfortunately, Guard and Reserve members do not have one form to show proof of service like the DD Form 214, which is used by Regular Military personnel.
Instead, the VA instructs discharged members to “submit NGB Form 22, Report of Separation and Record of Service, or a retirement points statement. Typically, all members of the Reserves and/or Guard receive an annual retirement points summary which indicates the level and length of participation. The applicant should submit the latest such statement received along with evidence of honorable service.”
The VA does not require originals of these documents as long as the copies you submit are legible. For Guard or Reserve members who are still on duty the VA instructs them to submit a statement of service signed by, or by the direction of, the adjutant, personnel office, or commander of the unit.
Regardless of your time in service requirements, do your preliminary credit investigation and debt reduction measures to prepare for the VA mortgage application.
Do National Guard members Qualify for VA Loans?
Guard members may be eligible for home loans from the Department of Veterans Affairs (VA) with little to no down payment. VA loans make buying a home more affordable and are available for home purchases and refinances. A VA loan eliminates the homebuyer’s need to make a down payment and purchase private mortgage insurance for homes up to $484,350.
VA-guaranteed loans are made by private lenders such as banks, savings and loans, or mortgage companies to eligible Veterans for the purchase of their own personal home, which must be for occupancy. To obtain a loan, a Veteran must apply to a lender.
If the loan is approved, the VA will guarantee a portion of it to the lender. This guarantee protects the lender against loss up to the amount guaranteed and allows a Veteran to obtain favorable financing terms.
Qualified Veterans need to obtain a certificate of eligibility from the VA, or your lender may be able to obtain one for you online. Members with six or more years of Guard service, or those with 90 days of continuous federal Active Duty service (Title 10), are eligible for the “VA Home Loan Insurance Program.” Explore your options online at HomeLoans.VA.gov.
What Qualifies you for a VA Loan?
To be eligible for a VA loan, you or your spouse must meet the basic service requirements set by the Department of Veterans Affairs (VA), have a valid Certificate of Eligibility (COE) and satisfy the lender’s credit and income requirements.
You may be eligible for a VA loan by meeting one or more of the following requirements:
- You have served 90 consecutive days of active service during wartime,
- You have served 181 days of active service during peacetime,
- You have 6 years of service in the National Guard or Reserves,
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
VA Loan Certificate of Eligibility (COE)
While you DO NOT need your Certificate of Eligibility (COE) in hand to apply for a VA loan, it is an important part of VA loan eligibility. Your COE provides the lender with confirmation that you qualify for VA loan benefits.
Again, it is not necessary to obtain your COE before applying for a VA loan as most VA lenders are able to instantly pull your COE through the VA’s automated system. In fact, nearly all VA loan COEs are requested electronically, and about two-thirds of certificates are issued immediately, according to the VA.
There are three basic ways you can obtain your COE for a VA loan, which include:
- Applying through a VA approved lender
- Applying online through the VA’s eBenefits portal
- Applying by mail with VA Form 26-1880
Speak with a Home Loan Specialist to get your COE today. The process takes minutes to complete with proof of your military service and ensures your home financing moves forward without delays.
Documents Required to Obtain a COE
Proof of service to obtain your COE often comes in the form of the DD Form 214 for regular military, and the NGB Form 22 and NGB Form 23 for National Guard and Reserves. However, this isn’t always the case. See the required forms for each service type below.
Documents Your Lender May Require
| Service Type | Required Documents |
|---|---|
| Veteran | DD Form 214 (Report of Separation) |
| Current or Former Activated National Guard or Reserves | DD Form 214 (Report of Separation) |
| Active Duty | Statement of Service |
| Current National Guard or Reserves (Never Activated) | Statement of Service |
| Discharged National Guard (Never Activated) | NGB Form 22 (Report of Separation and Record of Service) and NGB Form 23 (Retirement Points Accounting and proof of the character of service) |
| Discharged Reserves (Never Activated) | Army Reserve: DARP Form FM 249-2E or ARPC Form 606-E. Navy Reserve: NRPC 1070-124. Air Force Reserve: AF 526. Marine Corps Reserve: NAVMC HQ509 or NAVMC 798. Coast Guard Reserve: CG 4174 or 4175 |
How Spouses can Obtain their COE
Getting a COE as a surviving spouse depends on whether or not you’re receiving Dependency and Indemnity Compensation.
Spouses receiving Dependency and Indemnity Compensation benefits must fill out VA Form 26-1817 (Request for Determination of Loan Guaranty Eligibility – Unmarried Surviving Spouses) and obtain a copy of the Veteran’s separation paperwork, such as a DD Form 214.
If you’re not receiving Dependency and Indemnity Compensation benefits, you’ll need to fill out VA Form 21P-534EZ (Dependency and Indemnity Compensation, Survivors Pension and/or Accrued Benefits) and submit to your state’s VA Pension Management Center.
Additionally, you’ll need to provide a copy of your marriage license, the Veteran’s death certificate (or DD Form 1300 – Report of Casualty) and the Veteran’s separation paperwork.
Separation paperwork can be requested from the U.S. National Archives and Records Administration. Surviving spouses can reach out to a Veterans United loan specialist with questions or for more details.
Additional VA Loan Eligibility Requirements
Although the VA determines the guidelines for VA loan eligibility, private lenders who finance the home typically have an additional set of guidelines potential borrowers must satisfy, including sufficient reliable income to repay the loan, acceptable levels of debt, and a credit score that meets the lender’s credit requirements.
The property will also need to satisfy the VA’s appraisal process, which looks at the home’s fair market value along with its condition.
Are National Guardsmen Considered Veterans?
Title 38 of the Code of Federal Regulations defines a veteran as “a person who served in the active military, naval, or air service and who was discharged or released under conditions other than dishonorable.” This definition explains that any individual that completed a service for any branch of armed forces classifies as a veteran as long as they were not dishonorably discharged.
The principal difference between the National Guard and the Reserves is that the federal government is in charge of the Reserves, while the National Guard units predominately belong to individual states.
There are two National Guard types: the Army National Guard and the Air National Guard. National Guard members attend basic training and military job school full time under ADT (active duty for training), similar to the Reserves.
They resume daily civilian life but train one weekend per month (IDT) in addition to 15 full-time training days per year. This type of IDT/ADT time doesn’t count toward veteran’s benefits.
State governors can call National Guard members to active duty if a state emergency arises. Such emergencies include relief or protection of property and people outside the authority of local law enforcement. This form of state duty is known officially as “Title 38 Call-up” and doesn’t count toward veteran’s benefits either.
Like the Reserves, the president and secretary of defense can call upon the National Guard in provision of military contingency operations, known as “Title 10 Call-ups” or federal duty. This type of duty counts toward service requirements for veteran’s benefits.
In a given month, an estimated 40,000 members of the Air and Army National Guard are performing federal duty overseas.
Active Guard/Reserves
A program called the Active Guard/Reserves (AGR) includes members of the Reserves and National Guard that take part in full-time active duty. To make sure that National Guard and Reserve units are ready to mobilize at all times, AGR members provide daily operational support.
For veteran’s benefit service requirements, AGR duty is similar to full-time active-duty service.
Individual Ready Reserve
A military service contract spans a minimum of eight years total and the time that isn’t spent on active duty or in the Guard/Reserves must be spent in inactive reserves, known as the Individual Ready Reserves (IRR).
Generally, after serving four years, a member is transferred to the IRR for their remaining four years. IRR members don’t take part in weekend drills or annual training, but unfortunately, they don’t get paid either.IRR members can be recalled into active duty when necessary, in order to support military projects.
During IRR status, the time spent inactive doesn’t count toward veteran’s benefits unless the member is recalled into active duty. Roughly 15,000 IRR members have been recalled to active duty, largely for the Army and Marine Corps, every year since 2004.
How many points does a Reservist need for a VA loan?
A year’s worth of Guard or Reserve service may be worth more than 70 points, including 15 points for participating each year, 48 points for monthly drill activities, another 15 points for annual training which may vary depending on mission requirements) and any extra points earned through continuing education, honor guard detail, being mobilized, etc.
The figures listed above are based on a typical year where the Guard or Reserve member serves the normal one weekend each month and two weeks per year of service.
If your Guard/Reserve unit is not as active in a calendar year, you may not be able to earn 50 points. Conversely, you may receive far more than 50 points in a year if your unit is especially active. Federal law dictates a cap on how many retirement points you may earn in a single year, which varies depending on when you began military service.
What To Remember About Retirement Points And Earning A Good Year
Reserve and Guard members may not always earn enough points (50 points per year) to qualify for a good year in any given year. The points still count toward retirement in such cases but do not increase the number of Good Years on the service member’s record.
Track Your Retirement Points
Your retirement points should be current in your military records at all times. You can access these records the way you typically would via your unit orderly room or on your branch of military service’s official site.
You should, at a minimum, review your service records once per year to make sure you have accurate information listed there. You should also maintain a physical record of your military service as a backup, just in case.
It’s not just that your electronic service records may be subject to errors, glitches, hacking, or other issues. It’s useful to have instant access to your data for both retirement purposes and for any additional benefit or application that may require it.
Six years of service in the Guard or Reserves is a catch-all requirement. Active members can be eligible much sooner, typically if they’ve served at least 90 consecutive days on active duty during wartime.
Prospective homebuyers can talk with a Veterans United loan specialist about their eligibility for the VA loan program. You don’t need to have your Certificate of Eligibility in hand to start the VA mortgage process.
Once things are underway, lenders may be asking for a DD-214, a NGB-22 for National Guard members or a points statement and copy of discharge statement for Reservists.
Here’s a closer look at some of the service-specific documents lenders may need:
- National Guard: NGB-22 or NGB-23
- Army Reserve: DARP Form FM 249-2E or ARPC Form 606-E
- Navy Reserve: NRPC 1070-124
- Air Force Reserve: AF 526
- Marine Corps Reserve: NAVMC HQ509 or NAVMC 798
- Coast Guard Reserve: CG 4174 or 4175
Reserve and Guard homebuyers may be able to include their service income as effective income toward mortgage qualification. As with other forms of income, stability and reliability are key.
Lenders will look at your history of service and indications that it’s likely to continue. If there are concerns about stability, lenders may at least be able to use that income to offset short-term obligations. In other words, service income could basically cancel out other expenses that are expected to last a year or two.
Lenders may also inquire about whether your income could change based on your unit being activated.
Is every Military Person a Veteran?
The Department of Education and the Department of Veterans Affairs have varying criteria for individuals to claim veteran status. Please note, the criteria listed here are specifically addressing the requirements of the Department of Education to direct students on how to answer the question regarding veteran status on the Free Application for Federal Student Aid (FAFSA). Students who meet these criteria are considered independent for the purposes of federal student aid.
A veteran is a former member of the Armed Forces of the United States (Army, Navy, Air Force, Marine Corps, and Coast Guard) who served on active duty and was discharged under conditions, which were other than dishonorable.
There is no minimum number of days a student must have served on active duty to be considered a veteran. However, periods of active duty for training, pursuant to an enlistment in the National Guard or Reserves, do not qualify a student as a veteran.
Thus former or current members of the National Guard or Reserves are not considered to be veterans unless they had prior or subsequent service with an active component of the Armed Forces. (Reservists called to active duty by Executive Order qualify as veterans.)
Since the DD Form 214 is issued to those leaving the active military as well as to members of the National Guard and Reserves completing their initial active duty for training, possession of this document does not necessarily mean the student is a veteran.
Persons who attended military academies are now considered veterans for financial aid purposes.
Applicants who meet these criteria should check “yes” to the vet question on the Free Application for Federal Student Aid (FAFSA).
To be a veteran, a service member must have:
— 180 days of consecutive active duty (not counting training)
— Or one day in a combat zone: served on Active Duty during a period of war or in a campaign or expedition for which a campaign badge was authorized.
— Served in the National Guard or Reserve for 20 years and retired under honorable conditions. (passed 2016)
The form no one tells you about is, in many cases, more important than the one everyone thinks they know (DD214). The DD 256 and 257 are issued when the person has not met the active duty requirements to be considered a veteran by the DoD. But having a DD214 form doesn’t automatically mean you are a veteran!
What is truly bothersome is that people who have served but don’t qualify as a veteran can request a DD214. To the untrained eye, this person has a DD214 and in most cases their character of service is honorable, so people think that person is a veteran. But they’re not!
In a recent report, the DoD admitted that data is collected from 30 different sources to “build” a DD-214. The truth about a DD214: it takes a highly trained person who understands veteran laws and exactly what the information is showing them to determine if that person meets the standards to be called a veteran.
The National Veteran Business Development Council (NVBDC) uses: Title 38 U.S. Code § 4211 as our standard to determine the definition of a veteran. The applicant must have received an Honorable Discharge (HD) or Discharge Under Honorable Conditions (UHC).
The NVBDC does not accept DD214’s from the applicant. Why? One word: Photoshop. The most downloaded Federal form is the blank DD-214. It shouldn’t come as a big surprise that the amount of fraud in the Federal purchasing programs, especially the VA, is estimated at over $500 million per year per government estimates.
Can a Veteran be Denied a VA Home Loan?
In the housing sector, every day is Veterans Day. That’s because many lenders provide VA loans that are backed by the U.S. Department of Veterans Affairs. Perhaps the most attractive benefit of a VA loan is that a borrower can receive a mortgage without making a down payment towards the cost of the home. A VA loan is an example of our country taking care of those who have taken care of us.
But navigating the VA loan market can be difficult because too many lenders use financial jargon. If you’re in the market for a VA loan, there are four things to keep in mind:
1. Eligibility: Before embarking upon the path of finding the right mortgage, service members should start with checking whether they qualify. Not everyone who serves is eligible for a VA loan. It’s important to obtain a Certificate of Eligibility (COE) prior to applying for a mortgage because all lenders will require this.
Veterans will need to submit a DD 214 form that shows their record of service, and active-duty members must provide a current statement of service. Military spouses have another set of requirements altogether. “Not having a COE is the single biggest point of failure in getting a VA home loan,” said Bryan Bergjans, national director of military and veterans lending at, Caliber Home Loans.
2. Affordability: While it’s true that VA loans are more affordable than typical 30-year fixed rate mortgages, they should still be evaluated on a case-by-case basis. There can be a divergence between the advertised price of a loan and the actual price that a borrower will pay, after factoring in all the costs associated with originating and servicing the mortgages. It’s important that borrowers ask their lenders for the precise monthly payment amount in advance, so they can factor this into their personal financial calculations.
Only after knowing the monthly payment and other terms of the mortgage should you make a decision on whether to pursue the financing. Monitor the 10-year Treasury yield, which is closely associated with mortgage rates, to understand recent price trends in the market and take advantage of them when rates drop.
3. Understand changes in the law: The Blue Water Navy Vietnam Veterans Act, which goes into effect in 2020, will have a significant impact on the VA Home Loan Guarantee. The law permits veterans to borrow more than the previous limit of close to $485,000, which is set by the Federal Housing Finance Agency (FHFA).
Read Also: Va Loan after Chapter 7
Previously, service members who lived in expensive areas would have to make a down payment on the amount their property exceeded this limit. The new law makes it so that service members can borrow the full amount of the loan without having to make a down payment. This is an important and impactful change that will enable more members to obtain the financing they need to embark upon the path of homeownership.
4. Personal goals: Before signing the paperwork for a VA loan, understand clearly what you’re trying to achieve. Are you trying to obtain a mortgage without putting down any capital? Or are you trying to obtain a specific payment amount by leveraging current rates? Perhaps you want to conserve your money so that you can afford moving in costs and refurbishments. Or maybe you want to actually put some money down so that your monthly payment isn’t so high.
