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Need Help Understanding VA Loan Requirements and How to Obtain a COE
I am considering taking out a VA loan, but I need to know how to go about this. I understand that I have to meet certain requirements to qualify, but I’m not sure what they all are, especially when it comes to getting the VA Certificate of Eligibility (COE). Would someone be kind enough to explain it to me and take me through all the procedures for obtaining the COE?
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9 Replies
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That’s a great question, and I’m glad you’re looking into a VA loan—it’s a really smart benefit to take advantage of for those that are eligible. The process can seem a bit confusing at first, but I can definitely help break it down for you.
Eligibility Requirements:
To qualify for a VA loan, you generally need to meet one of the following criteria:
- Service Requirements:
- Active Duty: Veterans must have served at least 24 continuous months of active duty, or at least 90 days during wartime, or 181 days during peacetime if they were called or ordered to active duty.
- National Guard/Reserves: You should have at least 6 years of service, unless you were called to active duty, in which case the same 90-day wartime or 181-day peacetime active duty requirements apply.
- Spouse of a Veteran: Some surviving spouses are eligible, particularly if the service member died in service or due to a service-related disability.
- Discharge Status:
- Your discharge should be under conditions other than dishonorable.
Obtaining the Certificate of Eligibility (COE):
The COE is a key document you’ll need to show your lender that you qualify for a VA loan. Here’s how you can get it and what documents you’ll need:
- Online Application:
- The fastest way is to apply online through the VA’s eBenefits portal. Many people, including myself, have been able to get their COE almost instantly after applying online. However, sometimes it can take a little longer, depending on your specific situation.
- Through Your Lender:
- Lenders can often use an online system called Web LGY to quickly access your eligibility information and help you obtain your COE. The process is usually fast, depending on your eligibility and the accuracy of your records. Loan officers like myself work closely with lenders to ensure everything goes smoothly.
- By Mail:
- If you prefer, you can apply by mail by completing the VA Form 26-1880. You’ll send this form to the appropriate VA office. This method takes longer, usually around 4 to 6 weeks.
Documents You’ll Need to Submit for the COE:
- Veterans: A copy of your discharge or separation papers (DD Form 214) showing the nature of your service and the type of discharge you received.
- Active Duty Service Members: A statement of service signed by your personnel officer, adjutant, or commander of your unit or higher headquarters.
- Current or Former National Guard or Reserve Members: A copy of your retirement points statement and proof of your honorable service. If you were discharged, you may also need your DD Form 214.
- Surviving Spouses:
- If you’re receiving Dependency & Indemnity Compensation (DIC), you’ll need the Veteran’s discharge documents (DD214) and a completed Request for Determination of Loan Guaranty Eligibility—Unmarried Surviving Spouses (VA Form 26-1817).
- If you’re not receiving DIC benefits, you’ll need:
- A completed Application for DIC, Death Pension, and/or Accrued Benefits (VA Form 21P-534EZ),
- A copy of your marriage license,
- The Veteran’s death certificate.
Next Steps:
Once you have your COE, you can start the process of applying for the VA loan with your loan officer. They’ll guide you through the rest of the application process, including gathering necessary financial documents and working on your loan approval.
If you ever need help with the process or have more questions, feel free to reach out. I’m happy to assist you with your VA loan journey.
You can also check out the following article for even more info on VA loans:
https://chadbushre.com/everything-you-need-to-know-about-va-loans/
chadbushre.com
VA loans, backed by the U.S. Department of Veterans Affairs, allow veterans and service members to buy homes with no down payment and competitive interest rates. This guide details eligibility, types of VA loans, the application process, and financial considerations, … Continue reading
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Thanks for the reply. That’s very helpful.
- Service Requirements:
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As a rule, the individual seeking a VA loan must be either an active duty member, veteran, or spouse approved for eligibility. However, the length of service conditions changes with the era in which the person served.
Collect relevant documents:
For veterans: DD Form 214: Certificate of Release or Discharge from Active Duty
For members on active duty: Statement of Service
For veteran surviving spouses: Proof of marriage and the spouse’s death certificate.
Make an application for your COE:
Three avenues are available for applying:
- Over the Internet: The eBenefits portal at http://www.ebenefits.va.gov lets one apply for COE.
- Via a lender: Many lenders who the VA approves will help one get COE.
- Via post: Attach the completed VA form 26-1880 and post it to the concerned regional loan center.
Then wait for processing:
- Applications done online are normally instant.
- Applications that are sent in by post may take several weeks.
Examine carefully your COE:
This will reflect what has been granted and, for that amount, what has been taken previously, if any.
Obtain a VA loan: Some lenders do not provide assistance loans for veterans.
Get pre-qualification: This way, you can determine the amount you will likely borrow for real estate.
Search for the property: The property must satisfy the minimal property requirements established by VA.
The final step in the VA loan process: Your lender will lead you in doing this.
Even with COE in hand, remember that your application, amongst others, is likely to be rejected due to income and credit reasons.
Should any problems arise at any stage or should any queries be raised, please do not hesitate to contact the VA office concerned or any lender approved by the VA. Assistance specific to the client’s needs will be offered.
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Great article, Chad Bush. Angie Torres @Angie_Torres will chime in on this thread and advise us on the real deal. Also, GCA has so much to offer our veterans. We can go down to credit scores down to 500 FICO. We have no debt-to-income ratio caps as long as the borrower has sufficient residual income. Anyone with higher rates, we can do a VA streamline refinance (VA IRRRL) and close in about a week or even sooner. Veterans with a COE has so many benefits. You as a veteran with a COE should try to get a four-unit multi-family home and one year later, use your VA again and get yourself a single-family home. Thank you for your service, Chad. Now I need to show you extra respect. Lol. Do you know the exact parameters on how you become eligible for a Certificate of Eligibility. My son Tim is a E-5, a drill sergeant, but is on the reserves. I think he served for six or seven years but never went to combat. How do soldiers on the reserves qualify for a COE.
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So for Tim to qualify for a Certificate of Eligibility (COE) with his time in the Reserves, he needs to have completed 6 creditable years in the Selected Reserve or National Guard. To make those years count as “creditable,” he should have earned at least 16 points each year. These points can come from things like weekend drills, training, and membership.
He can check if he has 16 points each year by looking at his Retirement Points Statement. This statement shows all the points he’s earned for different activities each year. If he doesn’t have it handy, he can request it from his unit or check it through military personnel systems like the Army’s My Record Portal or a similar portal for other branches.
Now, on top of that, there’s an additional requirement: at least one of these must be true:
- He’s still serving in the Selected Reserve, or
- He was discharged honorably, or
- He’s retired, or
- He was transferred to the Standby Reserve or Ready Reserve with honorable service.
If he’s got those 6 years with the 16 points each and meets one of the above conditions, he should be good to go for the COE, even without combat experience. Hope that helps!
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This reply was modified 2 months, 1 week ago by Chad Bush.
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So just because you serve a two year full time in the military don’t automatically qualify you for a COE to get a VA loan, Chad?
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Great question. So, the two years (24 continuous months) of service is specific to those who served on active duty, but that alone doesn’t automatically qualify you for a COE to get a VA loan. For active duty members, the 24-month rule is one of the key requirements, but it also depends on when and under what conditions you served.
If you were in the National Guard or Reserves, the requirements are a bit different. Generally, you’d need 6 creditable years of service like I mentioned before, or you might qualify if you were called to active duty under Title 10 orders for at least 90 days.
So, while the two years of full-time service is important for active duty, it’s not the only factor. If you’re unsure about whether you qualify, it might be helpful to chat with a loan officer who can help you figure it out.
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Thank you Chad.I appreciate you. I will address this to Tim.
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Requirements for VA loan application and Certificate of Eligibility (COE) receipt
What is a VA loan?
What Qualification is Required for a VA Loan?:
- A VA mortgage loan is a type of loan assistance made possible by the Department of Veterans Affairs to benefit qualified individuals, armed forces veterans, active members of the armed services, and some qualified national guards and reservists.
- Some enticing benefits of this type of loan against the property are the complete absence of a down payment and loans for 100% financing with no private mortgage insurance provisions.
- VA loans have the cheapest interest rates than other mortgage loan programs.
VA Loan Eligibility? Service Requirements:
- Generally, the requirement for obtaining a VA loan is service in the United States military force.
- The number of years of service required, at a minimum.
- Depends on service time and orientation.
- This is whether the service member is on active duty, a veteran, or remains a member of the Reserves and National Guard.
- This is summarized below:
Veterans: Most should have been active for at least 90 continuous days during wartime—or 181 days during peacetime.
Active Duty: This refers to any service in the armed forces that is at least ninety (90) days of continuous service and above.
National Guard/Reserves:
- An individual must serve at least six years.
- But it may be released owing to a call for active duty.
- In this case, the same active duty requirement is applied.
Discharged service member: One of the basic guidelines of qualification for such individuals would have served but would not have been dishonorably discharged from the service.
How do you get cry waivers of the VA COE? What is COE?:
- In full, it is a Certificate of Eligibility.
- A Certificate of Eligibility or COE is a guarantee to your lender that all the requirements for approving the VA loan by the borrower.
Where can one find the COE document:
Online Through benefits:
- One of the conveniences of the eBenefits account is that one can apply for their COE online.
Through Your Lender:
- Most lenders can obtain your COE quite quickly through an online source.
- This is usually the easiest and fastest way.
By Mail:
- The individual can fill out VA Form DD 26-1880, requesting the Certificate of Eligibility.
- Could you forward it to the VA?
Documents accepted:
For veterans:
- DD Form 214 (Certificate of Release or Discharge from Active Duty).
For Active Duty Service Members:
- A Statement of Service.
- This may be an unsworn statement signed by a commander, adjutant, or personnel officer.
For National Guard/Reserves:
- All Reserve members not on active duty must accompany the NGB 22 (Separation Report and Record of Service) or NGB 23 (Accounting of Retirement Points).
Process of Application for VA Loan
- Step 1: Establish your eligibility: Correct. Before a VA loan is considered, check to see that you are service-eligible and hold a COE.
- Step 2: Select a Lender: To simplify the process, it is important to work with a lender specializing in VA loans.
- Step 3: Get Preapproved: A provisionary loan is taken, and a loan limit is sought and secured.
- Step 4: Begin Your Home Search: Working with a knowledgeable, conscientious realtor who understands VA loan specifics while undertaking the home search is wise.
- Step 5: Apply for the Loan: After obtaining the property you want, you should apply for a loan with the mortgage lender.
- Step 6: Obtain VA Appraisal: A VA appraisal will be conducted to meet the minimum property requirements.
- Step 7: Underwriting Process: The lender’s staff will check all the paperwork submitted before the loan is advanced.
- Step 8: Closing Process: Once a loan has been approved, all the documents are executed, and the loan has also been approved.
Common Questions Relating to VA Loan Application and the Certificate of Eligibility (COE) Requirement
- What does the VA Certificate of Eligibility COE mean?
- COE is a copy that guarantees the person can take out a mortgage from the VA.
- It acts as a security towards the request for the VA-backed loan.
How do I go about obtaining a VA Certificate of Eligibility COE?
- Currently, the VA Certificate of Eligibility code can be obtained from the VA’s eBenefits system, from the lender, or by sending VA Form 26-1880 through the mail as an application.
What procedures must then be performed in services to meet the VA loan requirements?
- Such service obligations are attached to an ex-military background.
- Thus, it is possible to extend such policies regarding service requirements, such as duration of service, to other categories, such as Military Veterans, Active Duty Service Members, and National Guard/Reserve members.
There is no further provision once it is said that VA loans are only for active-duty personnel. Is it plausible to get such loans as an active service member?
- This obligation is fulfilled for active duty members unless the individual has not been on continuous active military service for 90 days.
Are VA Loans available for those who have served in the National Guards and Reservists?
- For National Guard and Reserve members, there is a stipulation of either.
- In the more normal sense, 90 days of active duty or six years of service and such veterans are enough to qualify for a VA loan position.
What documents should I provide to have an eligibility certificate?
- In most cases, DD-214 is required of Veterans.
- A Statement of Service is a must for active duty members.
- National Guard/Reserve Conferment members usually receive NBG Form 22 or NBG Form 23.
Can I obtain a VA home mortgage vet loan even if my records show a discharge?
- Yes, except for individuals with dishonorable discharge, then such individuals can qualify for VA loans.
What can I do to Substitute a Lost DD-214 or other specific documents?
- You can obtain a DD-214 from the National Archives or use the VA’s eBenefits portal to acquire the necessary documents.
When should we expect the certificate of eligibility to be issued?
- In most instances, if you are applying online or seeking it from your lender, you will have it quite easily. When scheduled for receiving by post, a few weeks will be waited upon.
Having COE guarantees the person’s loan approval. Is this true?
- No, even though the COE qualifies you for the loan, a lender must fulfill more requirements before granting the loan.
Therefore, it is concluded that when one understands the possible requirements and has some form of plan and vision for pursuing and getting a VA Loan guaranteed with such COE, purchasing a house becomes a walk in the park.