Everything You Need To Know About the Statement of Service for VA Loans

If you’re an active duty servicemember looking to buy a home using a VA loan, one of the key documents you’ll need is a statement of service. This formal letter contains important details that verify your military status and employment history.

As a VA loan applicant, having a comprehensive statement of service is crucial for qualifying and getting approved by your lender. But what exactly should this document include and why is it so vital for the lending process?

In this guide, I’ll walk you through everything you need to know about the statement of service for VA loans. I’ll cover

• What is a statement of service
• Why it’s needed for VA loans
• What to include
• How to get one
• Tips for avoiding delays

Let’s dive in!

What is a Statement of Service for VA Loans?

A statement of service is an official letter from your commanding officer verifying your current or past military service. This documentation proves you meet the minimum service requirements to be eligible for a VA loan.

Lenders require a statement of service from active duty applicants to confirm their employment and income before approving a mortgage. Unlike civilians who provide pay stubs and tax returns, active duty members need this customized letter that outlines their military status.

Essentially, the statement of service acts as proof of your veteran status and all the key details lenders need to underwrite your VA home loan.

Why a Statement of Service is Critical for VA Loans

There are a few key reasons why this document is so important for securing a VA mortgage:

Proves your eligibility: The statement confirms you meet active/reserve duty requirements to qualify for the VA loan program.

Verifies employment: It provides dates, rankings, and assignments that verify your military job status.

Shows income: For active duty members, it documents your current income to determine affordability.

Speeds underwriting: With all critical details in one place, it expedites the loan review/approval process.

Satisfies lenders: It gives lenders the information they require to approve your VA loan application.

Bottom line: No statement of service means you won’t get approved for financing.

What to Include in a Statement of Service

While formats can vary, your VA statement of service should cover these key details:

• Full name and Social Security number
• Date of birth
• Branch of service
• Date entered active duty
• Projected separation date
• Current rank/pay grade
• Duty station and unit assigned
• Mailing address
• Total prior active service
• Amount of lost time (if any)
• Character of last discharge
• Eligibility to reenlist
• Monthly income
• Signature of authorized officer

This ensures lenders get the full picture of your military background and income. Always verify with your lender that your statement of service includes everything they require.

How to Get a Statement of Service for VA Loans

Here are some tips for getting your statement of service letter to avoid delays:

Request it early: It can take weeks to get an official signed letter, so start the process as soon as you begin your VA loan application.

Contact your C.O.: Reach out to your commanding officer to request they prepare the letter with all required details. Explain it’s needed for your VA mortgage application.

Follow up: Check in periodically if you don’t receive it within two weeks to ensure it wasn’t forgotten. Processing times can vary.

Review carefully: Verify all necessary information is included completely and accurately before submitting to your lender.

Answer lender questions: Your lender may need you to clarify or expand on anything that’s unclear in your statement of service.

Getting this letter right from the start helps streamline your VA loan process.

Sample Statement of Service Letter

To give you an idea of what your statement of service should look like, here is a sample letter example:

UNITED STATES ARMY

123 Street Name
City, State 12345

October 5, 2022

To Whom It May Concern:

This letter serves as the Statement of Service for Sergeant John Doe, SSN 123-45-6789, as follows:

Full Name: John A. Doe
Date of Birth: 01/23/1990
Branch of Service: United States Army
Date of Entry: 08/12/2017
Projected Separation Date: 08/11/2027
Current Rank/Pay Grade: E-5, Sergeant
Duty Station: Fort Campbell, KY, C Company, 187th Infantry Regiment
Mailing Address: 123 Street Rd., City, State 12345
Prior Active Service: 4 years
Lost Time: None
Character of Last Discharge: Honorable
Eligibility to Reenlist: Eligible
Current Monthly Income: $3,200

Sincerely,

Commander John Hancock
Commanding Officer

This covers all the necessary information lenders need to evaluate the borrower’s eligibility and income for a VA mortgage.

Statement of Service vs Leave and Earnings Statement

Don’t confuse the statement of service with a Leave and Earnings Statement (LES). While both are required for VA loans, they serve different purposes:

• Statement of service – Provides overall military/employment details to determine eligibility
• LES – Shows detailed income and deductions to confirm affordability

So in short:

• Statement of service = qualifies you for a VA loan
• LES = qualifies you for the loan amount

Work with your lender to ensure you supply both documents. They complement each other in the approval process.

Overcoming Statement of Service Issues

Despite your best efforts, there still may be potential hiccups, such as:

• Delayed response – Follow up persistently with your C.O. if it takes more than two weeks.

• Missing details – If lenders say vital info is missing, work quickly with your C.O. to provide an updated letter.

• Inaccurate info – Carefully review and correct any erroneous details on your statement of service before submitting.

• No statements – If you can’t obtain one, ask about alternatives like LeaveWeb that document duty status.

• Lender problems – Clarify any concerns your lender has about your statement of service ASAP.

Stay in close contact with your officer and lender to rectify any statement of service problems right away. This will prevent them from derailing your VA loan.

What Happens if You’re Denied?

Despite having a statement of service, it is possible your VA loan application still gets denied. Some common reasons include:

• Not meeting minimum duty requirements
• Insufficient income relative to requested loan amount
• Poor credit scores or high debt-to-income ratio
• Unverifiable details on statement of service
• Failure to satisfy lender guidelines

Fortunately, you can often take steps to improve your chances for approval in the future, such as:

• Increasing your income or down payment amount
• Paying down debts to improve your credit/DTI
• Waiting to meet active duty requirements
• Clarifying errors on your statement of service
• Applying with other lenders

As long as you meet basic VA entitlement requirements, rejection is rarely permanent. Tweaking certain aspects of your financial profile can often get you back on the path to homeownership.

When to Start the Statement of Service Process

Given that it can take weeks to obtain your statement of service, it’s advised to start the ball rolling early when seeking a VA mortgage.

Here’s a general timeline:

Pre-qualification – When you first begin looking at lenders, request your letter.

Pre-approval – Follow up with your C.O. to ensure there are no delays.

Find a home – Finalize and submit your letter to lenders once your offer is accepted.

Closing – Verify your final letter is accurate and meets lender requirements.

Initiating the process early provides a nice buffer in case your CO needs extra time or if any issues need correcting.

The Bottom Line

As an active military member, having a proper statement of service is mandatory when applying for a VA home loan. This document verifies your service eligibility and income for lenders to approve your mortgage application.

While the format can vary, be sure your letter includes your full name, SSN, dates/branch of service, income, and other key details outlined here. Work closely with your commanding officer and lender to obtain a comprehensive letter that satisfies VA requirements.

With an accurate statement of service in hand early on, you can feel confident about smoothly navigating the VA loan process and fulfilling your homebuying dreams!