VA Certificate of Eligibility: What it is and how to get one

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If you qualify for a VA loan, you can obtain a mortgage without needing a down payment or having to pay for mortgage insurance. However, you need to apply for a VA loan certificate of eligibility (COE) before you can apply for the loan.

What is a VA certificate of eligibility (COE)?

A VA loan certificate of eligibility (COE) is the first step toward getting a VA loan. The U.S. Department of Veterans Affairs provides the COE, which serves as evidence that you meet the VA loan requirements to be eligible for funding. Without it, you won’t be able to take advantage of VA loan rates and other benefits.

Who qualifies for a VA certificate of eligibility?

• Active-duty military: If you are on active duty now, you need to have served at least 90 continuous days to qualify for a VA loan certificate of eligibility.
• Veterans: For veterans, the service requirements are a bit more complex, varying from 90 days of active duty to 24 continuous months. Your discharge status is also a factor. To determine if you meet the requirements, review the VA’s standards.
• National Guard or Reserve members: For National Guard or Reserve members who served between August 2, 1990 and the present, you need to have served at least 90 continuous days on active duty to qualify for a COE. If you served prior to August 2, 1990, review the VA standards above.
• Surviving spouses: Surviving spouses might also qualify for a COE under certain circumstances: Your spouse must either be missing in action or a prisoner of war, or died in service or of a service-related disability, and you can’t have remarried before December 16, 2003 or before your 57th birthday.

How to get a VA loan certificate of eligibility

To get a VA certificate of eligibility, you’ll need to meet some key requirements. These vary based on your status (active duty or veteran), the period of time you served and your discharge status.

If you are currently active, you’ll need a statement of service signed by your commander, adjutant or personnel office that includes your name, your Social Security number and date of birth. The statement should also document the day you started your service, any lost time and the name of the command providing the information.

If you are a veteran, you’ll need your discharge or separation papers (DD214).

If you are a discharged member of the National Guard or Reserves and were never activated, you’ll need to meet a few other requirements to document your eligibility. Check the VA’s complete list of what you need for your application.

Surviving spouses must also provide extra paperwork. You’ll need to complete the VA’s Request for Determination of Loan Guaranty Eligibility–Unmarried Surviving Spouses form. Then, you’ll need to track down your spouse’s military records, which you can do via the National Archives; a copy of your marriage license; and a copy of your spouse’s death certificate.

There are three main options for getting your VA loan certificate of eligibility:

1. Apply online: The VA eBenefits online portal is the easiest and fastest route to get your letter of eligibility.
2. Ask your mortgage lender: If you know which VA lender you’d like to work with, you can ask the lender for help obtaining your COE.
3. Apply via mail: You can print out the VA’s COE request form, complete it and mail it to the appropriate regional loan center (the addresses are on the form). Keep in mind that this option will take extra time.

How long does it take to get a COE?

If you apply online and your eligibility is easy to verify, getting your certificate of eligibility for a VA loan can be a relatively quick process: roughly 30 days. If you can, though, apply early, and allow up to six weeks for processing.

In rare cases, verifying service and eligibility can take time. For example, if your discharge was classified as “less than honorable,” you can go through the VA’s Character of Discharge review process, which can take up to a full year.

Why are COEs necessary for VA loans?

A VA loan certificate of eligibility provides documentation that you meet the service requirements to apply for a VA home loan. Lenders are required to obtain proof of eligibility during the loan process.

A VA loan COE also outlines your loan entitlement, which is the amount the VA will guarantee should you default on the loan. The exact amount of your entitlement will be impacted by whether you have an outstanding VA loan you’re paying back. You’ll have reduced entitlement if you have an existing mortgage. But if you’ve never had a VA loan or you took out a VA loan, paid it back in full, and sold the home, then the VA will restore your full entitlement benefit.

VA certificate of eligibility FAQ

• How do you read a certificate of eligibility?

  Most of the information on your VA certificate of eligibility is easy to read and understand. You’ll see your name, Social Security number, branch of service and any prior loans that were charged to the entitlement. The one section that might need some deciphering is the two-digit entitlement code. This code refers to when you served or other circumstances that make you eligible for a VA loan. There are 11 codes (01-11). Code 05, for example, denotes your entitlement has been restored, while Code 10 denotes you served in the Persian Gulf War.

• What do you do when you receive a COE?

  When you have your letter of eligibility, it’s time to move forward with the VA loan process. Receiving a COE doesn’t automatically mean you are approved for a VA loan; it only means you’re eligible to apply for one. You’ll still need to go through the application process and meet the lender’s criteria, which can vary by lender. The process looks fairly similar to other mortgages at this point and involves reviewing your credit history, debt-to-income (DTI) ratio and overall financial picture.

• When does a certificate of eligibility expire?

  Your VA loan certificate of eligibility never expires; once you’re eligible, you’re all set. However, there’s one caveat: If you receive your COE while you are on active duty, you will eventually need to obtain a new COE once your status changes to veteran.

• Does a COE guarantee a VA loan approval?

  No, a VA loan letter of eligibility does not guarantee approval for a mortgage. A VA loan can still be denied for many reasons, including unstable or insufficient income, credit score issues, change of employment or even application errors.