Applying For A VA Loan? Here’s How To Get The VA Certificate Of Eligibility (COE) You’ll Need
Like all mortgage approvals, the VA loan comes with a specific set of required paperwork. Among the most important documents required for VA loan approval is what's known as the Certificate of Eligibility (COE).
The COE is a home buyer's evidence of VA loan eligibility. It assures a mortgage lender that the borrower meets minimum VA loan standards which includes term of service requirements.
Without a proper COE, it's a challenge -- but not an impossibility -- to get a VA loan approval.
Want Your COE? Try The "Easy Way" First.
There are several ways to get your VA loan COE. The easiest way is to ask your VA-approved lender to access the Department of Veterans Affairs website, called Web LGY.
Web LGY is the VA's web-based loan guaranty system, and it's not accessible to the public. It's for authorized VA lenders only. Via Web LGY, mortgage lenders can establish VA loan eligibility quickly, then issue a COE online.
This is a process which takes minutes -- not hours or days.
For instances when the VA lacks sufficient data to process a COE online, requests may be made via the U.S. Postal Service. The VA discourages such "manual" requests, though. Active-duty servicepersons and military veterans are encouraged to ask lenders to process COEs electronically via Web LGY.
The only VA loan borrowers who do not need a COE are those who are applying for the VA Interest Rate Reduction Refinance Loan (IRRRL). Also known as the VA Streamline Refinance, the IRRRL does not require a COE because a COE was provided when the original loan was obtained.
Filing Your Form 26-1880 With The VA
As part of the VA loan COE process, servicepersons on active duty, veterans and members of the National Guard and Reserve forces might also need to complete VA Form 26-1880, Request for Certificate of Eligibility.
The purpose of the Form 26-1880 is to supply data which is required to obtain a proper Certificate of Eligibility to the Department of Veterans Affairs. Form 26-1880 can be completed electronically or longhand via paper. Your mortgage lender can submit your Form 26-1880 via Web LGY on your behalf.
The good news is that Form 26-1880 is short -- it's one page in length. It asks for such basic information as :
- Your full name
- Your date of birth
- Your telephone number
- Your home address
- Any "alternate names" or aliases you may use
It also asks for your dates of service, your current service status, and information regarding any prior VA loans for which you were approved.
Servicepersons on active duty are expected to provide an additional statement of service. This statement should include your name, your date of birth, your active-duty entry date and your duration of any lost time, among other fields.
Active duty servicepersons should have this statement signed by, or at the direction of, the adjutant, personnel office or commander of the unit or higher headquarters.
Your VA lender can help you write this letter.
In addition, veterans should prepare to present a copy of their report of discharge, DD Form 214, Certificate of Release or Discharge From Active Duty. This document should state the character of your service and your reason for separation.
As before, your lender can submit these documents to the VA through Web LGY on your behalf. There's no need to handle it yourself.
Filing Your Form 26-1817 With The VA
Reservists, National Guard members, military spouses and others who may be VA-loan eligible are required to show a valid VA Certificate of Eligibility, too. This form might not be the same as that for an active serviceperson or veteran.
For example, surviving spouses are often asked to provide COE information to the VA via Form 26-1817, Request for Determination of Loan Guaranty Eligibility -- Unmarried Surviving Spouses.
It should be noted that Form 26-1817 may not be submitted electronically via Web LGY.
Eligible surviving spouses must submit Form 26-1817 to the VA via the U.S. Postal Service. This means that processing time will be delayed compared with an electronic filing. Surviving spouses of military veterans, therefore, should prepare to plan ahead for using VA home loan benefits.
Processing Form 26-1817 may require as many as three months.
Get Started With Your VA Home Loan Approval
VA home loans are different from conventional loans or FHA-backed mortgages because only military personnel and their families may be eligible. The rewards, though, are terrific.
Via its loan guaranty program, the VA allows for 100% financing with no required mortgage insurance. The VA also will often make "jumbo loans", which are for larger amounts, at conforming-like mortgage rates.
To get your VA Certificate of Eligibility (COE), remind your lender that you need one. The approval process takes just minutes.
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