The VA Loan Certificate of Eligibility (COE) is a crucial document for veterans and active-duty service members who wish to take advantage of the VA Home Loan program. This program offers numerous benefits, including no down payment, no private mortgage insurance (PMI) and competitive interest rates.
The COE verifies that you meet the eligibility requirements for a VA loan but the process of obtaining it can sometimes seem complex. This detailed guide will walk you through the steps to get your COE, explain the various methods available, and answer some frequently asked questions.
Understanding VA Loan Eligibility
Basic Eligibility Requirements
The VA loan program is designed to help veterans, active-duty service members and certain members of the National Guard and Reserves become homeowners. To be eligible you must meet specific service requirements:
- Veterans: Must have served on active duty and been discharged under conditions other than dishonorable.
- Active-Duty Service Members: Must have served for at least 90 continuous days.
- National Guard and Reserves: Must have at least six years of service unless called to active duty, in which case they may qualify earlier.
Service Requirements
The service requirements vary depending on when and how long you served:
- World War II, Korean War, Vietnam War: At least 90 days of active duty.
- Post-Vietnam War (May 8, 1975 – Sep 7, 1980): 181 continuous days of active duty.
- Peacetime (Post-1980): 24 months of continuous active duty or full period (at least 181 days) for which ordered or called to active duty.
Surviving Spouses
Surviving spouses of veterans may also be eligible if the veteran:
- Died in service or from a service-related disability.
- Was missing in action or a prisoner of war.
- Died while in service or from a service-related disability, and the spouse has not remarried.
What is a Certificate of Eligibility (COE)?
Importance of the COE
The COE is a document issued by the Department of Veterans Affairs (VA) that certifies your eligibility for a VA loan. Lenders require this certificate to verify that you qualify for the benefits of the VA loan program.
Information Included in the COE
The COE includes:
- Your personal information.
- Your eligibility status.
- The entitlement amount (the amount the VA guarantees for your loan).
- Any previous VA loans and the remaining entitlement.
Methods to Obtain a COE
There are three primary ways to obtain your COE:
Through a VA-Approved Lender
Most veterans find this method the easiest. VA-approved lenders can access the VA’s Automated Certificate of Eligibility (ACE) system and obtain your COE within minutes.
Online via eBenefits Portal
You can also apply for your COE through the VA’s eBenefits portal. This method requires you to create an account and follow the online instructions.
By Mail
If you prefer, you can apply by mail. This method is slower but useful if you cannot access the internet or prefer paper applications.
Step-by-Step Guide to Obtaining a COE
Gathering Necessary Documentation
Before you start the application process, gather the necessary documentation:
- Veterans: DD Form 214, Certificate of Release or Discharge from Active Duty.
- Active-Duty Service Members: Statement of service signed by your commander, adjutant, or personnel officer.
- National Guard and Reserves: NGB Form 22, Report of Separation and Record of Service or NGB Form 23, Retirement Points Accounting, and proof of the character of service.
- Surviving Spouses: DD Form 214 (if available), veteran’s death certificate, and DD Form 1300, Report of Casualty.
Applying Through a Lender
- Choose a VA-Approved Lender: Find a lender experienced with VA loans.
- Submit Documentation: Provide your DD Form 214 or other required documents.
- Lender Requests COE: The lender will use the VA’s ACE system to request your COE.
- Receive COE: The COE is typically issued immediately if your information is in the system.
Applying Online
- Create an eBenefits Account: Go to the eBenefits portal and create an account.
- Log In: Log in to your eBenefits account.
- Apply for COE: Follow the instructions to apply for your COE online.
- Submit Documentation: Upload any required documents.
- Receive COE: The VA will process your request and issue your COE, which you can download from the portal.
Applying by Mail
- Fill Out VA Form 26-1880: Download and complete VA Form 26-1880, Request for a Certificate of Eligibility.
- Attach Documentation: Attach your DD Form 214 or other required documents.
- Mail the Form: Mail the form and documentation to the VA Regional Loan Center for your state.
- Receive COE: The VA will process your request and mail your COE to you.
Common Issues and Solutions
Missing or Incomplete Documentation
Ensure you have all the necessary documents before applying. If documentation is missing, request duplicates from the appropriate military records office.
Errors on the COE
If there are errors on your COE, contact the VA Regional Loan Center to request corrections. Provide any supporting documents needed to rectify the mistake.
Denial of COE and Appeals Process
If your COE is denied, the VA will provide a reason. You can appeal the decision by providing additional documentation or evidence to support your eligibility.
F.A.Qs about VA Loan Certificate of Eligibility
What is the quickest way to obtain a COE?
The quickest way to obtain a COE is through a VA-approved lender who can access the VA’s ACE system and retrieve your COE within minutes.
Can I use my COE for multiple VA loans?
Yes, you can use your COE for multiple VA loans, but your entitlement will be affected by any outstanding VA loan balances. You may need to restore your entitlement before applying for another VA loan.
How long does it take to get a COE by mail?
Obtaining a COE by mail can take several weeks, depending on the VA’s processing time and mail delivery.
What if I lose my COE?
If you lose your COE, you can request a duplicate from the VA using the same methods (through a lender, online, or by mail).
Do surviving spouses need a COE?
Yes, surviving spouses need a COE to apply for a VA loan. They must provide proof of their spouse’s service and death, such as a death certificate and DD Form 1300.
Can I transfer my COE to another veteran?
No, the COE is non-transferable. It is specific to the individual veteran or eligible service member.
Do I need a new COE for a refinance?
For a VA refinance loan (IRRRL or Cash-Out Refinance), you typically do not need a new COE. Your original COE is sufficient.
What if my service was in the National Guard or Reserves?
Members of the National Guard or Reserves must have served at least six years or been called to active duty. They need to provide NGB Form 22, NGB Form 23, or a statement of service.
Can I get a COE if I am currently on active duty?
Yes, active-duty service members can obtain a COE. They need to provide a statement of service signed by their commander, adjutant, or personnel officer.
What happens if I don’t meet the minimum service requirements?
If you don’t meet the minimum service requirements, you may still be eligible if you were discharged due to a service-connected disability.
Summary
Obtaining a VA Loan Certificate of Eligibility is a critical step in securing a VA home loan. By understanding the eligibility requirements, gathering the necessary documentation and choosing the most convenient application method you can streamline the process.
Is either you apply through a VA-approved lender, online or by mail, having your COE in hand will bring you one step closer to homeownership. If you encounter any issues, remember that the VA and your lender are there to help you navigate the process and address any challenges that arise.
For further assistance, don’t hesitate to contact your nearest VA Regional Loan Center or visit the VA’s official website. Homeownership is a rewarding goal and the VA loan program is designed to make it more accessible for those who have served our country.
