Can I get a VA loan if I have a dishonorable discharge?
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UPDATED: Oct 17, 2012
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Veterans with a less-than-honorable discharge may or may not be able to obtain a VA loan.
VA loans are home financing lent through private lenders. However, VA loans are guaranteed by the federal government. This guarantee allows lenders to give very generous rates on the VA loans they lend to veterans.
Military service members often exit the armed forces with either an honorable discharge or a less-than-honorable discharge.
Veterans that have an honorable discharge will have no problem applying for loan. While there are a variety of approval requirements, they will still be eligible to apply even after rejection. Unfortunately, this isn’t the case with veterans that have less-than-honorable discharges.
Lenders may or may not grant financing to veterans with less-than honorable discharges. This category is essentially a middle ground between honorable or dishonorable discharges. Unfortunately, the particular circumstances of a veteran’s less-than-honorable discharge will have to be evaluated prior to financing approval or rejection. Additional paperwork is almost always required. Speaking to the local VA office may be wisest for interested applicants with less-than-honorable discharges.
Veterans with dishonorable discharges will probably be unsurprised to find that they are unable to receive VA loans. A dishonorable discharge results in many penalties, and the lost access to a federally guaranteed home loan is just one of these.
In the event that a veteran is able to upgrade or change their discharge status to an honorable discharge status, then they would be eligible for a VA loan. Therefore, it is of prime importance that any veterans who have less-than-honorable discharges and even dishonorable discharges do everything they can to improve their situation for the better. Seeking to appear before a discharge review board is one of the best ways veterans can try and upgrade their status. Sometimes contacting a lawyer may be required.