What Is a VA Certificate of Eligibility and How Does It Work?

When you apply for home loans for veterans, you need to meet a variety of requirements. The most important step is obtaining a COE, or Certificate of Eligibility, but what is this legendary piece of paper and how do you get one? A COE is simply an official record that you’ve met minimum service requirements as a veteran. As long as you pay attention to these conditions, you should be able to get one with no problem. This list will explain how to qualify and what it signifies.

How Do You Get One?

COEs can be acquired in several ways. You can apply online directly to the government, through your favored VA approved lender in the process of obtaining a loan or through the mail. They will all get you an answer, but the quickest way will be through your lender. They have an exclusive database where they can get your certificate in just a few minutes. Online and postal requests have a lengthier process.

How Do You Qualify?

To be approved for veteran home loans, you must meet the service requisites. This means you’ve served either 6 years in the National Guard or Reserves, 90 days as a full-time soldier during times of war, 181 days in times of peace, or you are a widow or widower of a soldier that died in combat or due to service-related injuries. The Certificate of Eligibility is simply proof of this service.

Why Didn’t the Automated System Work?

If your lender has trouble getting your Certificate of Eligibility, don’t get rattled. This can happen for several reasons in the application process with home loans for veterans. For instance, veterans who were released under a dishonorable discharge, those whose previous VA loan went into foreclosure, some surviving spouses and some members of the National Guard or Reserves may run into issues. If this is the case, your lender will know how to move forward. You may just need to send additional documentation for the VA to evaluate.

Does This Mean You Have the Loan?

Just because you are approved for a Certificate of Eligibility doesn’t mean you’ve been accepted for a loan. There are several steps you’ll have to pass to get a loan and the COE is just the first of them. You’ll also need to meet explicit income, debt and credit score criteria specific to your lender. A COE is a necessity, but not a guarantee.

What Happens If I Lose My COE?

If you lose your current copy of your Certificate of Eligibility, it’s not a problem. You can obtain a new copy in the same manner as you originally received it. Simply reapply online, through the mail, or through a lender a voila! You’re back on track. Use it in the same manner as the original.

Applying for home loans for veterans doesn’t need to be a difficult process, but certain steps must be followed. The most important of these is obtaining a COE. Simply apply in one of three easy ways and the first hurdle is passed. Just remember you have to meet the specifications, and know that you’re not guaranteed the loan simply because you qualify for the certificate.

Weston Barnes is a writer and an avid reader. When he's not writing about business, marketing, health, pets, or relationships, he's immersed in his latest book.