VA Certificate of Eligibility
What is a VA certificate of eligibility?
The Department of Veterans Affairs (VA) Certificate of Eligibility is an important document that proves a veteran's entitlement to certain VA benefits.
It serves as proof for the veteran and their dependents that they are eligible for VA home loan guaranty, educational assistance, life insurance coverage, health care, burial and memorial services.
The certificate also helps veterans access some other types of financial aid from the state or federal government. To apply for this document, applicants must provide evidence showing their service in the military and any disabilities acquired during their service.
Once approved by the VA, a Certificate of Eligibility will be sent to them confirming their eligibility status. The Department of Veterans Affairs requires a Certificate of Eligibility (COE) for a VA Mortgage loan is the documentation need to be approved for a VA mortgage loan.
The borrowers must be an active service member, military veteran, or a surviving spouse of a military veteran.
What Steps Do the Borrowers Need to do to Prepare for the Application Process?
The first step for an active service member, military veteran or surviving spouse of a military veteran will need to accomplish prior to applying for a VA Mortgage Loan is do the following. Lenders will need this documentation to confirm the eligibility requirements for a VA mortgage loan.
Military Veterans:
Veterans will need to get a copy of their discharge or separation papers, also known as a (DD214).
Active-Duty Service Members:
Active-duty service members will need to have a statement of service that is signed by their commander, adjutant, or personnel officer. The statement must include the following:
1. The full name of the borrower.
2. Social Security Number
3. Date of birth of the borrower.
4. The date the borrower entered duty.
5. The duration of any lost time.
6. The name of the command providing the information.
Current or former activated National Guard Member:
A current or former activated National Guard member will need a copy of their DD214 or other documents that show discharge.
A current or former activated National Guard member who has at least 90 days of active-duty service including at least 30 consecutive days, they will need a copy of at least one (1) of the following documents to show their activation date.
1. Their DD214 that shows 32 USC sections 316, 502, 503, 504, 505 activations.
2. An annual point statement.
3. DD220 with accompanying orders.
Current or Activated Reserve Members
A current or activated reserve members must have a copy of their DD214 or other discharge documentation.
Current Member of the National Guard or Reserve Who Have Never Been Activated:
A current member of the National Guard or Reserve who has never been activated will need a statement of service. They will need their commander, adjutant, or personnel officer to provide the following information.
1. The full name of the borrower.
2. Social Security Number
3. Date of birth of the borrower.
4. The date the borrower entered duty.
5. The duration of any lost time.
6. The name of the command providing the information.
Discharged Members of the National Guard Who Were Never Activated:
A discharged member of the National Guard who was never activated will need the following:
1. Their Report of Separation and Record of Service (NGB Form 22) for each period of National Guard Service.
2. Their Retirement Points Statement (NGB Form 23) and proof of the character of service.
Discharged Members of the Reserve Who Were Never Activated:
1. A discharged member of the Reserve who was never activated will need the following:
2. A copy of their latest annual retirement points.
3. Proof of their honorable service.
Surviving Spouse of a Veteran Who Died on Active Duty or Who Had a Service-Connected Disability
A surviving spouse of a veteran who died on active duty or who had a service-connected disability will need to provide the following:
1. The surviving spouse will need to provide the veteran’s discharge documents (DD214).
2. If the surviving spouse is receiving Dependency and Indemnity Compensation (DIC), they will need to fill out and send the VA a Request for Determination of Loan Guaranty Eligibility-Unmarried Surviving Spouses (VA form 26-1817).
When Veteran's spouses are not receiving DIC benefits the will need to send all of these:
3. A completed Application for DIC, Death Pension, and/or Accrued Benefits (VA form 21P- 534EZ)
4. A copy of their marriage license.
5. The Veteran’s death certificate.
How Does the Borrower Request a Certificate of Eligibility (COE)?
An active service military member, armed forces veteran, or a surviving spouse of a military veteran may submit a COE application in the following ways:
1. Online at the Department of Veteran’s Affairs Website: va.gov/housing-assistance/home- loans.gov
2. They may ask their mortgage lender, if they use an online system called Web LGY. If the lender has these systems, then they may request through them.
3. The borrower may request their COE by mail. They will need to fill out a Request for Certificate of Eligibility (VA form 26-1880). Then they will need to mail to their local regional loan center.
Please note mail request will take longer than requesting online or through their lender.
What Happens After the Borrower Received the Certificate of Eligibility?
Obtaining the COE is the first step in the loan process, to get a VA Mortgage Loan. The borrower will then need to research the different VA loan types.
The also will need to secure a lender. The lender will be a private bank, credit union or mortgage company.
The lender will be able to assist the borrower in the best type of VA Mortgage loan for them.
The lender will request a VA Appraisal. The appraisal is an assessment of the home’s condition and value. The appraiser will visit the home to determine a market value for the home.
They will check the square footage, housing systems, and the overall condition of the home. The appraisal is not a home inspection, nor does it guarantee the value of the home.
Conclusion of Veterans Affairs Certificate of Eligibility:
The Department of Veterans Affairs Certificate of Eligibility (COE) is a document that verifies a veteran's eligibility for VA home loan benefits.
To obtain a COE, veterans must provide proof of military service and meet certain requirements, such as minimum length of service and honorable discharge.
The COE is a crucial step in the VA home loan process, as it allows lenders to verify a veteran's eligibility and determine the amount of loan entitlement they may qualify for.
Veterans can apply for a COE online through the VA's e-Benefits portal or by submitting a paper application.
