From DDO wiki
With Veteran Status, you can start creating new characters at level 4 or level 7. You can unlock veteran status in two ways:
- Accumulate 1,000 total favor on a single character to unlock level 4 veteran status on one server.
- Accumulate 3,000 total favor on a single character to unlock level 7 veteran status on one server.
- Purchase it in DDO Store (one purchase for all servers).
With veteran status II, your character receives free Veteran II Starter Items.