Active-duty military personnel and veterans can benefit from the Veterans Affairs (VA) backing on mortgages to save on private mortgage insurance, interest rates and closing costs. You could also secure a mortgage with 0% down, but you'll need to get a VA loan certificate to qualify for a VA loan's many benefits. You'll also need to meet mortgage lender qualifications, including minimum credit score and debt-to-income ratio (DTI). Read on to understand how to get a VA loan certificate of eligibility and whether you're eligible.
What Is a VA Home Loan Certificate of Eligibility?
The U.S. Department of Veterans Affairs issues a VA loan certificate of eligibility (COE). It certifies that you meet VA loan requirements and can be used as evidence of your eligibility with lenders. Active-duty military members, veterans, National Guard or Reserve members and eligible spouses can apply for a certificate of eligibility. Without a certificate of eligibility, you cannot qualify for VA loan rates from lenders.
Why Are VA COEs Crucial for Obtaining VA Loans?
A VA COE is essential to secure a VA loan and its many financial benefits. It proves to lenders that an applicant has officially met the VA's military service requirement. For that reason, lenders may also be willing to help qualified buyers get their certificate of eligibility as part of the loan approval process.
Who Is Qualified for a VA Loan COE?
You may qualify for a VA loan certificate of eligibility if you meet the VA's specific veteran, active service member or National Guard member requirements. Here's what you need to know.
Veteran
If you're a military veteran, you can qualify for a VA COE if you served for at least 90 days during active wartime. For peacetime service, you can qualify if you served for at least 181 continuous days. If you were discharged because of a service-related disability, you can still qualify for a COE even if you don't meet the minimum days of service requirements.
Service Member
Active-duty service members must have served at least 90 continuous days to qualify for a COE.
National Guard Member
National Guard members are eligible for a VA COE, and there are various ways to qualify. You can qualify for a COE if you have at least 90 days of active duty and at least 30 continuous days of service. Likewise, you will qualify for a COE if you have served in the Selected Reserve for more than six years of honorable service. You will also qualify if you’ve had 90 days of service under Title 32 and at least 30 days were consecutive.
Current National Guard Members, former activated National Guard members or discharged members who meet other criteria can qualify for a VA COE. Find the VA's full criteria here.
Reserve Member
Reserve member criteria are similar to National Guard member criteria. Current, former activated Reserve members, those who have never been activated and discharged members who were never activated can all be eligible if they meet certain criteria. If you served at least 90 days of active duty or six years of honorable service, you can be eligible for a COE. Likewise, 90 days of service under Title 32 with at least 30 consecutive days can help you qualify.
Surviving Spouse of a Veteran
As a surviving spouse of a military veteran, you can qualify for a VA certificate of eligibility if your spouse died on active duty or who had a service-connected disability.
If you meet any of the following criteria, you can qualify for a COE:
- Your military spouse is missing in action
- Your spouse is a prisoner of war (POW)
- Your spouse died while in service or from a service-connected disability
To qualify, you must not have remarried or didn’t remarry before you were 57 years old or before Dec. 16, 2003.
How to Get a VA Loan Certificate of Eligibility
If you're an eligible active-duty military member, veteran or National Guard or Reserve member, you may apply for a VA loan certificate of eligibility. Each of the steps below is one path to obtaining a COE.
- Ask your VA-approved lender to obtain the COE for you. This is the simplest option, as the lender will typically help you through the process. Many VA lenders have an internet-based application that can issue a certificate of eligibility immediately.
- Request the certificate through VA's online portal.
- Download and complete a request for a certificate of eligibility, Form 26-1880. Then, mail the completed application to the regional loan center of the jurisdiction listed on the form.
- If you're a surviving spouse currently receiving dependency and indemnity compensation (DIC), you must download a Request for Determination of Loan Guarantee Eligibility form and take it to a lender for processing. You'll also need DD Form 214 discharge documents if you have them.
- Surviving spouses that don't receive DIC must bring VA Form 21P-534EZ, a copy of their marriage license and the veteran’s death certificate to the VA lender to get a COE.
What to Do if You Don’t Meet the Minimum Service Requirements?
If you don't meet minimum service requirements, you may still be able to qualify for a loan if you have other special situations. For example, if you have a hardship reduction in force, certain medical conditions or a service-related disability, you may still qualify. You can see the full list of criteria based on when you served or find the best loans for disabled veterans here.
What to Do if You Lose Your VA Loan COE?
If you lose your VA COE, contact the Department of Veterans Affairs for a copy or recovery steps. Keeping digital copies of your COE is always a good idea. When applying for a VA COE, you will need proof of service. This can include:
- Copy of form DD-214
- Statement of service signed by your commander, adjutant or personnel officer
- Report of Separation and Record of Service for each period of service
- Retirement Points Statement and proof of the character of service
- Copy of your latest annual retirement points
- Proof of honorable service
If you lose your VA entitlement because the property has a VA loan, the simplest way to restore it is to sell the property or transfer it to another eligible veteran under their entitlement.
Should You Get a VA Loan?
If you qualify for a VA loan, it's a smart financial move that can help you save more on interest rates, private mortgage insurance and fees. You can also qualify for up to 100% financing on the property. To get a VA loan, you'll need a certificate of eligibility, which you can get as an active-duty servicemember, veteran, surviving spouse or member of the National Guard or Reserve Guard. Ready to get started? Find the best VA rates and lenders here.
Frequently Asked Questions
Can I use my VA Loan COE more than once?
Yes, you can get a VA loan more than once with the same COE. There is no limit on how many times you can get a VA loan, as long as you only hold one VA loan at a time.
Can I use my VA Loan COE to purchase any type of property?
You can use a VA loan to purchase a property that will be your primary residence. You cannot use a VA loan to purchase second homes or commercial properties. However, you can use a VA loan to buy a duplex, a triplex or a quadplex as long as one of the units is your primary residence.
Can I use my VA Loan COE to refinance an existing loan?
You could use your VA loan COE for a refinance or cash-out refinance. In case of a refinance, you would need to apply for a new VA mortgage and then pay off the existing mortgage with the VA loan. The VA will guarantee up to 100% of the loan’s value. Find the best VA
About Alison Plaut
Alison Plaut is a personal finance and investing writer with a sustainable MBA, passionate about helping people learn more about wealth building and responsible debt for financial freedom. She has more than 17 years of writing experience, focused on real estate and mortgages, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she regularly contributes to Benzinga.