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The Veterans Affairs (VA) loan can be a great way for certain veterans, active-duty service members, and surviving spouses to achieve their dream of homeownership. But how does one show that they’re eligible for a VA loan? That’s where your Certificate of Eligibility (COE) comes in.
The COE is your proof that you meet the VA’s requirements for a VA loan. In this article, we’ll explain what the COE is, who needs it, and how to get it.
What Is the VA Certificate of Eligibility?
The VA Certificate of Eligibility is a document proving a veteran meets the VA’s service requirements for a VA loan. It also shows lenders how much of a veteran’s loan entitlement is available, as well as whether or not the veteran is exempt from paying the VA funding fee. A COE is required for all VA transactions, including interest rate reduction refinance loans (IRRRL) and cash-out refinances.
The actual document is pretty short and straightforward. In addition to the information mentioned above, the COE includes:
- The borrower’s name and social security number
- The VA’s reference number for their COE
- The borrower’s branch of service
- The borrower’s entitlement code
- Information about prior loans charged to the borrower’s entitlement (if applicable)
Who Needs a COE and When
Anyone who is applying for a VA loan must have this document. Potentially eligible applicants include:
- Veterans
- Active-duty service members
- Current or former activated National Guard members or Reservists
- Current National Guard members or Reservists who have never been activated
- Discharged members of the National Guard or Reserves who were never activated
- Un-remarried surviving spouses of veterans who died on active duty or had service-connected disabilities
For the specific eligibility requirements for each of these groups, view the VA’s website here. While you do not need your COE in hand to begin your VA loan process, you will need the document before closing your loan.
How to Get Your COE
There are three ways to get your COE:
- Through your lender. This may be the best way to go through this process efficiently and confidently. While you can do your COE application yourself via the methods below, your lender might be more experienced in the process and more likely to catch small errors that slow down the process.
- Online. Veterans can apply for their COE using the VA’s COE request website. Once signed into this site, you would be able to request a COE, find out if you already have one, or check on the status of your application.
- Mail. You can also print VA Form 26-1880 and fill it out yourself with the instructions included in the form. Then, you can mail it to the relevant address listed on the last page of the document. Note that processing the mail-in form can take longer than other methods.
Documents You’ll Need
Applicants for a VA COE must submit specific documents based on their type of service. The table below explains what documents you would need for your COE depending on your service category.
| Service Category | Necessary Documents |
|---|---|
| Veteran / Current or former National Guard member or Reservist who’s been activated | DD Form 214 showing character of service and narrative reason for separation |
| Active-Duty Service Member |
Current statement of service signed by the adjutant, personnel office, or commander of the unit or higher headquarters that shows:
|
| Current National Guard or Reserve member who has never been activated |
Current statement of service signed by the adjutant, personnel office, or commander of the unit or higher headquarters that shows:
|
| Discharged member of the National Guard who has never been activated |
One of the following:
|
| Discharged member of the Selected Reserve who has never been activated | Copy of your latest annual retirement points statement and evidence of honorable service |
| Surviving Spouse in Receipt of Dependency & Indemnity Compensation (DIC) benefits | Submit VA Form 26-1817 and veteran’s DD214 (if available). Include veteran’s and surviving spouse’s Social Security numbers on the form. |
| Surviving Spouse not receiving DIC benefits |
Submit the following to the appropriate Compensation and Pension office:
|
How to Correct COE Errors
Common errors in COE applications include misspelled names, incorrect SSN, incorrect date of birth, or even accidentally placing the SSN in the service number box. Depending on the errors holding up your application, your lender can help you correct them in the Loan Guaranty Service (LGY) portal. Be sure to work closely with your lender throughout your COE application process.
FAQs
Does a COE guarantee I’ll get a VA loan?
No. The COE is simply one part, albeit an important part, of the VA loan application process. It confirms that you meet the VA’s eligibility requirements, but it does not confirm that you meet your lender’s requirements. That will be determined by your lender based on financial information, such as your credit history and income, among other things.
Do I need a COE for a VA refinance?
Yes, borrowers must have a COE for a VA cash-out refinance and a VA IRRRL. The requirements may vary a bit between the two loan types, so be sure to work with your lender to determine what’s needed.
Does my COE expire?
Under most circumstances, the COE does not expire, however there is an exception. If you got your first COE while on active duty, you would need to get a new one once you have been discharged.
Final Thoughts
Obtaining a VA Certificate of Eligibility can feel like an intimidating step in your VA loan process. While you’re allowed to do it yourself, you don’t have to go it alone. It can often be more efficient to work with your lender on requesting your COE. If you’re preparing to buy a home with your VA loan, we hope this article gave you some helpful insight into this important step in the process.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
