What You Need to Know About Your Statement of Service

If you’re currently serving in the military and looking to get a VA loan, you’ll need something called a statement of service to verify your current status. Additionally, you’ll need to provide a Leave and Earnings Statement (LES) to secure VA financing. Let’s take a look at what these documents are, and why they’re important.

While an LES covers your pay and wages, a statement of service covers other administrative information that can affect whether you can use your LES income for home loan purposes.

Reenlistment verification will generally include two documents: A sentence on your statement of service regarding whether you are eligible to reenlist and a separate document stating your intent to reenlist. Some lenders may also require you to provide proof of reenlistment before allowing you to use this income.

The 12-month cutoff from separation can be frustrating for planning purposes but it makes sense – income needs to be stable and continuous to count it for loan purposes. If you're getting out of the military in three months and don't have a job lined up it'll be difficult to make a mortgage payment. To an underwriter, allowing a borrower to use income that will only continue for another three months is too risky.

Statement of Service Letter Requirements

There isn't a standard military form for the statement of service. But in general, the statement of service compiles several pieces of significant information:

• Official Letterhead
• Date
• Full Name of Borrower
• Social Security Number
• Date of Birth
• Branch of Service
• Rank
• Date Entered on Active Duty
• Current Date of Separation
• Unit of Assignment and Current Duty Location
• Duration of Time Lost, if any
• Last Discharge
• Type of Discharge
• Whether you are barred or flagged from continued service
• If reserves, whether the borrower is an "active" reservist or inactive status
• Whether you are eligible to reenlist
• Information Current as of Date
• Signature and Title of Signer

If you're preparing to apply for a VA home loan, printing this list off would be a good idea and talking with your supervisor or commanding officer. They’ll be able to help you determine your best point of contact for this request.