SDI Productions/Getty Images
If you qualify for a VA loan, you can get a mortgage without having to make a down payment or pay mortgage insurance. However, you will need to apply for a VA Loan Certificate of Eligibility (COE) before you can apply for the loan.
What is a VA Certificate of Eligibility (COE)?
A VA Loan Certificate of Eligibility (COE) is the first step to getting a VA loan. Issued by the U.S. Department of Veterans Affairs, the COE is proof that you meet the lending requirements for a VA loan. Without a COE, you won’t be able to access VA loan interest rates and other benefits.
Who is eligible for a VA Certificate of Eligibility?
- Active duty military: If you are currently an active duty military member, you must have served at least 90 consecutive days to qualify for a VA Loan Eligibility Certificate.
- Veterans: For veterans, the service requirements are a bit more complicated and can range from 90 days of active duty to 24 months of continuous service. Discharge status is also a factor. Check the VA criteria to determine if you meet the requirements.
- National Guard or Reserve members: For National Guard or Reserve members who served between August 2, 1990 and the present, you must have served at least 90 consecutive days on active duty to be eligible for COE. If you served before August 2, 1990, please review the VA criteria above.
- Surviving spouse: Surviving spouses may also be eligible for COE under certain circumstances: if their spouse was missing in action, a prisoner of war, or died in the line of duty or from a service-connected disability, and did not remarry before December 16, 2003 or their 57th birthday.
How to Get a VA Loan Eligibility Certificate
To obtain a VA Certificate of Eligibility, you must meet several important requirements. These requirements vary depending on your status (active or veteran), length of service, and discharge status.
If you are currently on active duty, you will need a certificate of service signed by your commander, adjutant, or personnel office that includes your name, social security number, and date of birth. The certificate should also state the date you began service, the hours you were absent, and the name of the command to which you provided the information.
If you are a veteran, you will need a military discharge certificate or separation certificate (DD214).
If you were discharged from the National Guard or Reserves and have never been called up, you’ll need to meet a few other requirements to prove your eligibility. Check out the VA’s full list for what you need to apply.
The surviving spouse will also need to submit additional paperwork: they will need to fill out the VA’s “Request for Determination of Loan Guarantee Eligibility – Unmarried Surviving Spouse” form, followed by your spouse’s military record (which can be looked up at the National Archives), a copy of your marriage license, and a copy of your spouse’s death certificate.
There are three main options for obtaining a VA Loan Eligibility Certificate.
- Apply online: The VA eBenefits online portal is the easiest and fastest route to obtaining your eligibility certificate.
- Contact your mortgage lenderIf you know which VA lender you want to deal with, you can ask the lender for assistance in obtaining a COE.
- Apply by email: You can print the VA’s COE request form, complete it, and mail it to the appropriate Regional Loan Center (the address is listed on the form). Please note that this option will take extra time.
How long does it take to get a COE?
If you apply online and have easy access to verify your eligibility, it should take a relatively short time to get a Certificate of Eligibility for a VA loan, about 30 days, but apply early if possible and be prepared for it to take up to six weeks to process.
In rare cases, verifying your service history and eligibility can take time. For example, if your discharge was classified as a “demonstrable” discharge, you will go through the VA’s Discharge Character Review process, which can take up to a year.
Why do VA loans require a COE?
A VA Loan Eligibility Certificate is a document that proves you meet the servicing requirements to apply for a VA home loan. Lenders must obtain your proof of eligibility during the loan process.
Your VA Loan COE also lists your loan entitlement, which is the amount the VA guarantees you if you default on your loan payments. The exact amount of your entitlement depends on whether you have an outstanding VA loan that you’re paying off. If you have an existing mortgage, your entitlement is reduced. However, if you’ve never taken out a VA loan, or if you took out a VA loan and paid it off in full and sold your home, the VA will restore the full amount of your entitlement.
