Yes. National Guard and Reserve members can use a VA-backed loan to buy or build a new home in San Antonio once they meet VA’s service requirement. For most drilling members, that means 6 creditable years in the Selected Reserve or Guard, or at least 90 days of qualifying non-training active duty. Guard and Reserve members pay the same VA funding fee as other borrowers, and lenders can count drill pay as income when your service history shows it’s likely to continue. Here’s how eligibility, paperwork, and income work when the home is a new build.
Brock Bremmer | U.S. Air Force Reserves Veteran | Real Estate Agent | eXp Realty | San Antonio Metro Area
VA Loan & New Construction Specialist
Also see: VA Loans on New Construction | VA Funding Fee Exemptions | VA Income on a New Build
Do Guard and Reserve Members Qualify for a VA Loan?
They can. I’m an Air Force Reserves veteran, so this one is close to home. San Antonio is home to Guard and Reserve units, including the Air Force Reserve’s 433rd Airlift Wing at JBSA-Lackland’s Kelly Field Annex. VA.gov lists these minimum service requirements:
| Component | You meet the requirement if you served… |
| Reserve | At least 90 days of non-training active-duty service, or 6 creditable years in the Selected Reserve and you continue to serve, or 6 creditable years in the Selected Reserve and you were discharged honorably or placed on the retired list |
| National Guard | At least 90 days of non-training active-duty Title 10 service, or at least 90 days of active duty including 30 consecutive days (your DD214 must show 32 USC 316, 502, 503, 504, or 505 activation), or 6 creditable years and you continue to serve, or 6 creditable years and you were discharged honorably or placed on the retired list |
Annual training and drill weekends generally don’t count toward the 90-day active-duty path, because VA’s rule says “non-training.” If you haven’t been activated, the 6-year path is usually the one that applies. VA.gov also lists exceptions for some early discharges, such as hardship or a service-connected disability, so request a COE even if you’re not sure.
What Documents Do You Need for Your COE?
Your Certificate of Eligibility (COE) is what proves your entitlement to the lender. VA.gov lists different documents depending on your status:
- Current member, never activated: A statement of service signed by your commander, adjutant, or personnel officer. It must show your full name, Social Security number, date of birth, date you entered duty, total creditable years, any lost time, and the name of the command.
- Current or former activated member: Your DD214 or other discharge documents. For the Guard’s 30-consecutive-day path, VA accepts a DD214 showing the 32 USC activation, an annual point statement, or a DD220 with orders.
- Discharged Reserve member, never activated: Your latest annual retirement points statement and proof of honorable service.
- Discharged Guard member, never activated: NGB Form 22 for each period of service, plus NGB Form 23 and proof of the character of service.
You can request the COE online at VA.gov, through your lender (your lender may be able to get it through VA’s WebLGY system), or by mail with VA Form 26-1880.
How Do Lenders Count Drill Pay and Civilian Income?
VA’s Lender’s Handbook (M26-7, Chapter 4) says Reserve or Guard income can be used to qualify if your service has been long enough to show a good probability it will continue beyond 12 months. If not, that income may only be used to offset debts that will be paid off in 6 to 24 months. Your lender documents both drill pay and any civilian income.
Timing matters if you’re near the end of your service commitment. VA’s underwriting rule (38 CFR 36.4340) says that if a Guard or Reserve member is within 12 months of release, the lender needs one of the following: proof you’ve already reenlisted or extended, a valid offer of local civilian employment, a statement of intent to reenlist with your commander’s confirmation, or other strong factors such as a down payment of at least 10%. On new construction, an employment verification or LES can be up to 180 days old, versus 120 days on an existing home.
Retirees may also see a smaller residual income requirement. VA reduces the residual income guideline by at least 5% for active-duty members and military retirees when there’s a clear indication they’ll keep using a nearby base, and M26-7 lists Guard and Reserve retirees as examples. My guide on how much income you need for a VA loan on a new build walks through the residual income table.
Do Guard and Reserve Members Pay a Higher Funding Fee?
No. VA’s current funding fee chart, effective April 7, 2023, uses the same rates for Veterans, active-duty members, and National Guard and Reserve members:
| Down payment | First use | After first use |
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
On a $350,000 new build with no down payment and first use, the fee would be $7,525. It can be financed into the loan. If you receive VA disability compensation, you may be exempt. My funding fee exemption guide lists who qualifies and how refunds work.
What Changes When the Home Is a New Build?
VA.gov says a VA-backed purchase loan can be used to build a new home, and you may not need a down payment if the price doesn’t exceed the appraised value. On a new build, a few extra steps come into play:
- The builder has to work with VA financing. Ask before you write a contract, and confirm the plan, lot, and incentive all work with a VA loan.
- Watch the 4% concession cap. VA limits seller concessions to 4% of the home’s value, and VA counts a seller-paid funding fee toward that cap. Closing cost credits and rate buydowns need to fit around it.
- Plan for the appraisal and the VA’s property standards. See my guides on VA minimum property requirements on new builds and what happens if a VA appraisal comes in low.
For more on picking a builder and community, my video on how to buy a new construction home with a VA loan in San Antonio covers the process step by step.
Frequently Asked Questions
Do drill weekends count toward VA loan eligibility?
Not for the 90-day active-duty path, which VA limits to non-training active duty. If you’ve never been activated, the usual path is 6 creditable years in the Selected Reserve or National Guard, whether you’re still serving or were discharged honorably or placed on the retired list.
Can a lender use my Reserve drill pay to qualify me?
Yes, if your service history shows a good probability the income will continue beyond 12 months, according to VA’s Lender’s Handbook. Otherwise, it can only offset debts that will be paid off in 6 to 24 months. Your lender will document both your drill and civilian income.
Ready to Use Your VA Benefit on a New Build?
Brock Bremmer with eXp Realty is a U.S. Air Force Reserves veteran with 120+ homes sold across the San Antonio metro. He helps VA buyers compare builders, check incentives against the 4% concession cap, and plan contracts around the build timeline in San Antonio, New Braunfels, and Boerne.
- 📞 Call or text: 210-501-5088
- 📧 Email: [email protected]
- 📅 Schedule a free consultation
Also see: How to Use a VA Loan in San Antonio | Buying Near JBSA-Lackland | Using Your VA Loan Again
Sources: VA, eligibility for VA home loan programs; VA, how to request a VA home loan COE; VA, funding fee and closing costs; VA, purchase loan; VA Lender’s Handbook (M26-7), Chapter 4, Credit Underwriting; 38 CFR 36.4340, VA underwriting standards; 433rd Airlift Wing, Air Force Reserve.