VA loan Certificate of Eligibility can be obtained by the military member. There are several ways to obtain a COE; you can do it yourself or with a lender.
When applying for a VA loan Certificate of Eligibility (COE), it is wise to understand that the Department of Veterans Affairs is not funding the new purchase or the refinance. Funding is the lender, who is responsible for providing the money for the loan. So what does that mean to you? That means that the VA is who gives you the first step in the process to obtain the VA loan benefits, which is the COE. This letter allows a lender to understand that you are qualified to start the application and use a VA loan. The lender is the next step after the VA says you are able to use the VA loan benefits.
The lender will have you complete an application and review your credit history and financial situation to let you know, as the borrower, what you can qualify for. Once you are qualified for a certain amount, you will know your budget for a house or what changes you need to make to qualify. Remember, lender qualifications from lenders are all different and change often, so be bold and seek all options.
What is a Certificate of Eligibility (COE)?
A certificate of eligibility is a document that a veteran will need to understand their benefits offered to get a VA loan. It is a simple document that will state what, as a veteran, you are allowed for your VA loan. It is a bit complicated to read and get a hold of but let’s go through some items. This will help you better understand the document and what you need to do to make the most of your eligibility.
How to Get Your VA-backed home Loan Eligibility letter as a Veteran
There are a couple of ways to get ahold of your Certificate of Eligibility which will show you what you are entitled to as a veteran, active duty member, or qualified family member.
- Go to the Department of Veterans Affairs VA website and follow the instructions to get it from the E-benefits portal to apply online to receive a copy.
- Utilize a VA-certified lender who can request the Certificate of Eligibility on your behalf
- Request by mail. Use the VA website to locate your office, or call 1-877-827-3702 to get an address to request from.
How to Get Your Home Loan Certificate of Eligibility as an Active Military Member
The simplest way for an Active Duty Military member to retrieve their COE will be to log on to the E-benefits website and download the document. With a Common Access Card (CAC), it can be a couple of moments before you are all registered. Once you are on the website for E-benefits, find the portal for documents and look for a block “request my COE.” It will give you the option to click and open the document as a PDF. Simple stuff when you can verify with a CAC.
How to Get Your COE as a Member of the Reserves or National Guard
Reserves/ National Guard, after six years of service or with a service-connected VA disability, can also get qualified in some cases. Be prepared to share your point sheet with your lender. Depending on your status and access to different systems, you can also get your Certificate of Eligibility from E-benefits, as listed above.
Ok, listen up; this is exciting stuff. If you had a 90-day service with 30 days of consecutive service with title 32 USC section 316, 502, 503, 504, or 505, you could be eligible for a VA loan! For your reference, this was passed in early 2021 in a VA Circular (26-21-08). This could be a game-changer for some of our veterans. Ask your lender and continue seeking instructions and lenders who are super up to date on their information with the VA loan eligibility. As a home buyer, you will constantly be doing research to keep your house up, and if you become an investor, you will put in even more work to make sure your investment is taken care of while others are paying you. Why not start your journey of preparation by looking into all of your benefits starting now before you purchase?
Members of the National Guard or Reserve who were never activated after discharge
On the surface, members of the Nation Guard or Reserve who were never activated and were discharged are not eligible for the VA loan. Some of the wordy ways of the government can also leave room for interpretation, and also there are some other qualifying factors that may allow members to become eligible for the benefits of a VA loan. A mortgage lender who is qualified and extremely knowledgeable about the changes in the requirements for the government-backed VA loan is where a member would want to start when having their individual scenario looked at. A “no” on the surface may not be the final answer. The VA does look at each case brought to them and will evaluate to see if there are any qualifying factors that will allow a member to utilize the VA benefit, but it is not always just a yes or no answer. Speak with a lender and see what they can help you with.
How to Get Your Loan Certificate as a Military Spouse
Per the VA website, there are a few cases where the spouse can get a copy of the COE. Getting a copy of the COE and being eligible for the actual VA loan in place of a spouse are two different situations. It’s important to know that there are items that need to be taken care of in order for a non-military spouse to step in and use the VA loan benefits. Veterans missing in action, a prisoner of war (POW), died while in service, or due to a service-connected disability (non-member spouse must have stayed unmarried) are a couple of times where an application can be processed to the VA by a loan officer if their internal requirements allow a non-veteran to apply. These are a couple of situations where the spouse may be allowed to use the VA loan benefit in place of their qualified member spouse, but conditions are always changing. A loan officer would be the one to talk to about getting a loan funded in a situation where the member is no longer involved in the transaction. Situations should always be evaluated and approved on a case by case; there are no guarantees before actually talking to the VA and the lender to obtain a VA loan and or eligibility.
Applying for a COE
So, in an attempt to see if the rumors I have heard are true, I requested my COE to see how long it takes! Keep reading, I got in. Let me save you some time. First, remember to log into your E-benefits often, at least every 30 days, as this is quite the process if you do not. If you don’t have your CAC login handy, find your passport before you start if your DL has a different address than your current address because you will not get through the verification steps if you do not align your address with your driver’s license. After you access your E-benefits, the process is quite simple. I went to the search bar and wrote in “certificate of eligibility,” and a link popped up to view my COE. I then pulled it up, printed it to PDF, and started to read all about it.
How Long Does it Take to Get a COE?
It can take anywhere from a few minutes to weeks, depending on how you request your COE. Knowing that it can take some time to get the certificate and understanding how to read it is important so that when you get it, you can quickly break down what it is telling you about your potential buying power. So here are a couple of the blocks that will be listed:
- Name
- Branch
- Status
- Funding fee status (non-exempt – non-service-connected disability rating)
- Prior loans charged to entitlement – if blank, the veteran should have full entitlements
- Active loans are in this box.
- Basic entitlement amount (no loan max)
Does a VA Certificate of Eligibility expire?
Certificates of Eligibility do not expire. Be mindful that you will need to get a new one after your completion of active duty or a status change. This will be important to ensure you complete your loan process. The other times when a new COE will need to be requested is when you already have a VA loan. Due to some of your eligibility already being utilized, your lender will need a new letter to do the new calculation for your remaining allowance. Make sure you are prepared in your timeline to pull a new letter when you want to execute a new loan. Your lender can also let you know what their requirements are when it comes to verification and underwriting processes. Be aware that each lender’s conditions, applications, and processes differ from one lender to another.
Does having a COE guarantee my VA loan mortgage approval?
A COE allows a veteran, active duty member, or military family member to understand that they can apply for a mortgage using the VA loan program, but it does not guarantee mortgage approval. An actual mortgage and amount for the home purchase is a lender’s decision. Because the lender is the body that will give the loan, the lender will have their own steps for getting a borrower information on what they qualify for.
My lender said it’s unable to request a VA COE for me. Why?
Lenders who are unable to request a VA COE are likely not going to be helpful when it comes to your adventure to utilize your VA loan benefits. When applying for a VA loan, to ensure that you are taken care of, you want to work with lenders that have VA experience and go with a lender who truly specializes in them. In the housing market in the past few years, there were lenders who were able to work with all types of loans and had no need to really focus on the ins and outs of some of the money-saving knowledge for VA loans. There are definitely lenders who go above and beyond to keep up with the changes in the VA loan regulations, and these are the lenders that most often save our service members the most and, on top of that, keep them safe from accidentally moving into an uninhabitable home!
As you move into your home-buying process, remember that as a member seeking to use your VA loan benefits, the Certificate of Eligibility is an important document that your lender will need to retrieve to get you started. The COE, coupled with your application, will allow your lender to get you on your way to getting a prequalification letter. This letter will let you know what amount you qualify for when shopping for a new house! Good luck in the early stages of your house-hunting journey.
ADPI Pro Tip
- If you previously bought a house and you had a disability rating PRIOR to the purchase, you can try to fight to get your funding fee returned! Talk to the VA about this option.
- As of 2021, in a VA Circular (26-21-08), National Guard and Reservists that qualify can also look to have fees refunded as the guidance can be used as a retroactive action.
