When a military member leaves the service, the discharge is classified. The most common classifications are Honorable and Dishonorable.
Veterans may still be eligible for a VA home loan, even if the discharge is not an honorable one. According to The Department of Veterans Affairs, people with dishonorable discharges are not eligible, but all other veterans may eligible depending on the circumstances of each case.
Veteran discharges, including dishonorable ones, may have their status changed by the government. Each service has a Discharge Review Board (DRB). Veterans may petition to have the classification of theirs upgraded by applying to have it reviewed by the discharge review board.
If the review board upgrades the classification, veterans may take advantage of VA benefits otherwise denied beforehand.
Discharge reviews should be taken care of before applying for a VA loan so all information is up to date when the application is processed.