Obtaining a COE
Everything You Need to Know About Getting a VA Loan Certificate of Eligibility
Understanding the Basics: What is a Certificate of Eligibility?
When you’re applying for a VA home loan, a COE is a document that verifies to lenders that you are, in fact, eligible for the VA-backed loan. It is issued by the Department of Veterans Affairs and contains important information about your military service, including dates of service and type of discharge. This document is essential in beginning the process of obtaining a Hawaii VA loan and will signal to the lender that you are qualified for the program.
Overview of Eligibility Criteria for a COE
In addition to meeting a lender’s specific credit and income requirements, you must also meet a list of criteria to qualify for a COE. As a veteran, these include:
- Meeting the minimum active-duty service requirements as listed on the US Department of Veterans Affairs For those who have served between the Gulf War (August 2, 1990) and present, the minimum requirement is 24 continuous months, or the full period (at least 90 days) for which you were called or ordered to active duty, or at least 90 days if you were discharged for a hardship or a reduction in force, or less than 90 days if you were discharged for a service-connected disability.
- If you don’t meet the minimum service requirements, you must have been discharged for one of the following reasons: hardship; government convenience (in which case, you must have served 20 months of a 24-month enlistment); early out (in which case, you must have served 21 months of a 24-month enlistment); reduction in force; specific medical conditions; a service-connected disability.
- You can also be eligible for a COE for a VA home loan if you are a U.S. citizen who served in the Armed Forces of a government allied with the United States in World War II, or if you served as a member in certain organizations including being a Public Health Service officer, Cadet at the United States Military, Air Force, or Coast Guard Academy, Merchant seaman during World War II, and a short list of other roles in the United States Naval Academy and National Oceanic & Atmospheric Administration.
A qualified Honolulu VA loan officer can help you to establish where you stand in terms of eligibility.
Understanding the Certificate of Eligibility
The certificate of eligibility includes a reference number, service number, social security number, your entitlement code, branch of service, and date of birth. It will also list any prior VA loans that you have obtained. Contrary to popular belief, you can obtain more than one VA home loan in your lifetime, and even more than one at the same time (if you still have remaining eligibility). The certificate of eligibility also contains important information on your home loan benefits. These include the type of benefit to which you’re entitled, and the amount of your entitlement.
- The service number is the nine-digit number assigned to you when you first enlisted in the military.
- The social security number is your unique identifier assigned by the Social Security Administration.
- The branch of service will be one of the following: Army, Marine Corps, Navy, Air Force, Coast Guard, or National Guard.
The entitlement code will be one of the following:
01: World War II
02: Korean War
03: Post-Korean War
04: Vietnam War
05: Entitlement Restored (meaning you had a previous VA loan that was paid in full and you’re now eligible for another one)
06: Surviving Spouse
07: Spouse of POW/MIA
08: Post-World War II
09: Post-Vietnam
10: Persian Gulf War
Your entitlement code will also tell lenders if you’re subject to paying a higher funding fee because you’ve used your VA home mortgage benefits before, or if you are exempt due to a service-connected disability. The funding fee is a percentage of the loan amount that helps offset the cost of administrating the VA home loan program. Your VA loan officer will help you navigate the funding fee, if necessary, as well as any other unique circumstances regarding your home loan eligibility.
Veterans Affairs Loan Eligibility
What do I need in order to apply for a COE?
The requirements are not copious, however, there are specific non-negotiable documents that you’ll need in order to apply for your COE. You will need a completed VA Form 26-1880, which a VA loan officer can help you fill out accurately. You’ll also need to provide documentation of your military service, including your DD Form 214 (Discharge Papers). A statement of service can sometimes be provided in lieu of the DD Form 214. This statement must come from your commanding officer, and should include your pay rate while you were serving in the military. Again, a VA loan officer is the best person to help you ensure that you have all of the required documentation in hand before you apply for your COE.
How to apply for a Certificate of Eligibility (COE)?
You will obtain a COE from the Department of Veterans Affairs. This can be done online, by mail, or through a lender. The process for each option is outlined below:
VA Loan Officer: You can work with an accredited VA loan officer, who will help you to obtain your COE quickly and efficiently. Your VA loan officer will help you to get all of the required supporting documentation and should have access to the Automated Certificate of Eligibility (ACE) database. The ACE database is the most efficient way to obtain a COE as it allows VA-approved lenders to access the document within seconds.
Online: You can fill out the VA Form 26-1880 and submit it electronically. Remember that you will need to provide documentation of your military service, as well as your DD Form 214 (Discharge Papers). You can also register at ebenefits.va.gov and pull your COE within minutes as well.
By Mail: This is definitely the most time and labor-intensive process. This method can take weeks. You can fill out and print the VA Form 26-1880 and submit it by mail. Again, you will also need to provide documentation of your military service, as well as your DD Form 214 (Discharge Papers).
Download VA Form 26-1880 here
Once you have applied for your COE, the Department of Veterans Affairs will process your application and send you a Certificate of Eligibility.
How long does it take to get a COE?
If you apply online or working a VA loan specialist, you should be able to pull your COE within minutes.
Is it Possible to be Approved for a VA Home Mortgage Without a COE?
You can get pre-approved for a loan without a COE, but you will not be able to finalize the loan until you obtain one. Also, it is important to have your COE pulled early in the VA loan process to ensure there are no errors or omissions.
What are the next steps once I have my COE?
Once you have your COE, it means that you’re eligible to apply for a VA home loan. Your VA mortgage broker will then help you to complete a VA Loan Application. Your loan officer will work with you to get your home loan approved and closed so that you can start enjoying your new home!
Get in touch with Elias Halvorson to learn more about obtaining your COE and how he can help you finance the purchase of your new home in Hawaii.
Elias Halvorson has over a decade of experience in the industry and is one of the top Honolulu VA mortgage brokers in this specialized field.