Your VA certificate of eligibility (COE) is what lenders use to determine your eligibility for a VA home loan.
In the market to buy a home? VA loans provide some of the best home-buying deals available.
Qualified veterans and surviving spouses are eligible for loans with a 0% down payment,* flexible credit requirements, and no mortgage insurance.
So how do you get your hands on a VA mortgage? You’ll need to start by requesting your VA home loan certificate of eligibility (COE).
The COE tells lenders whether you’re eligible for a VA loan. Fortunately, getting your COE is fairly straightforward.
The VA home loan certificate of eligibility is issued by the U.S. Department of Veterans Affairs (VA) and tells lenders whether you can take out a VA home loan.
Getting your COE is the first step in qualifying for a VA loan, because lenders can’t approve a VA mortgage without it.
The COE details the level of VA home loan benefit a veteran or active-duty servicemember is eligible for, based on their available entitlement and length of military service.
There are three levels of loan entitlement:
The length of service requirements for your COE vary based on when you served. If you were discharged early because of a service-related injury, the minimum service requirement may be waived.
†*Eligible if served fewer days but discharged due to service-connected disability
††**No allowance for fewer service days if discharged due to service-connected disability
†††***Eligible with minimum days if you were discharged due to a government decision, reduction in force, or a hardship. Eligible with less than minimum days only if separated due to service-connected disability.
Any qualifying veteran or active-duty servicemember can apply for a COE, including those who have served in the following branches of the military:
You may also qualify for a VA loan if you are the surviving spouse of a servicemember who died while serving, is missing in action or a prisoner of war, or who died from a service-related injury. Only surviving spouses who have not remarried qualify for a VA loan.
Here’s what your loan officer will look for on your COE:
1. Funding fee exempt status: Borrowers who have a service-related disability may show an “exempt” status on their COE, which means you don’t have to pay the upfront funding fee, which is typically 2.3% of the loan amount. If your COE status shows “non-exempt,” you will be responsible for the funding fee.
2. Entitlement code: The entitlement code relates to your time of service and whether you served during war or peacetime. Entitlement Code 10, for example, means you served during the Persian Gulf War. Entitlement Code 5 means you’ve used a VA loan previously, so you’ll owe a higher funding fee this time, typically 3.6% of the loan amount.
3. Previous VA loans: If you’ve taken out a VA loan before, it will be listed under “Prior Loans Charged to Entitlement.” The COE will provide the loan amount, date of the loan, the amount of entitlement used and whether the loan is active.
You have two options for requesting your COE:
1. Request it through the VA ebenefits website.
2. Ask your lender to look it up when you apply for your mortgage (takes just a few minutes).
The second option will likely be the easiest for you, though you may need to provide additional documentation before the loan is approved.
If possible, have all of your service-related documents on hand so there’s no delay in processing.
Expect to provide the following documents when you apply for a VA loan:
If you are a surviving spouse and you receive Dependent and Indemnity Compensation (DIC), you’ll need the veteran’s DD-214 form, as well as VA form 26-1817, which is a request to determine if you’re eligible for the VA loan guaranty.
Surviving spouses who do not receive DIC must file VA Form 21P-534EZ to request those benefits. They must also provide the veteran’s DD-214 and death certificate and their marriage license.
You may be eligible for a VA loan as long as you meet the active-duty service requirements and received an honorable discharge.
You’ll need to meet income and credit requirements as well, and you’ll need to buy a VA-approved home.
Here’s what lenders will look for:
VA loans are a solid choice, if you qualify, because of the flexible requirements. Plus you’ll likely get a lower interest rate than you would for another type of mortgage loan.
If you’re not sure whether you qualify or what your entitlement status is, a VA-approved lender can look up your COE and pre-approve you for a home. They can also offer guidance on the types of properties you can buy and what you can expect from the VA loan process.
How do I get my VA certificate of eligibility? You can request a COE VA form through the VA ebenefits portal. A VA-approved lender can also look it up quickly during the pre-approval process.
What is a VA certificate of eligibility? A VA certificate of eligibility (COE) shows that you are eligible for a VA home loan. The COE reflects your service history and whether you have partial or full entitlement.
How long does it take to get a certificate of eligibility from the VA? The fastest — and simplest — way to get your COE is to ask your loan officer to look it up when you apply for your mortgage.
Does a VA certificate of eligibility expire? Your COE does not expire. But if you received a COE while on active duty, you will need to request a new one after you’re discharged.
Can you have two VA loans at once? The short answer: yes, as long as both are purchased as primary residences. This may be the case if you bought a house with a VA loan but received transfer orders to another city and need to move before you sell your current home. Whether you qualify for a second VA mortgage while paying down the first depends on how much entitlement you have left, as listed on your certificate of eligibility.
VA loans are one of the best home loan deals around because of the 0% down payment and lenient credit terms.
Whether you are a first-time homebuyer or need a new home as you transition to a new base, a VA loan can help you get there.
*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds the VA county limits. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits. Fairway is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency. Copyright©2024 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI53718, 1-866-912-4800. Fairway is not affiliated with any government agencies. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity.
