How to get a VA Certificate of Eligibility (COE)

If you serve or have served in the United States military, or are the surviving spouse of someone who did, you’re eligible for a Veterans Affairs mortgage that allows you to buy a home with no down payment.

To get a VA loan, you need a Certificate of Eligibility that shows you meet the minimum service requirements. Some veterans find the process of applying for a COE straightforward, while others have their request denied and don’t understand why.

Learn more about what a COE is, how the application process works, and ways you can overcome any obstacles you may encounter. 

What is a VA Certificate of Eligibility?

A Certificate of Eligibility verifies that you’re eligible for a VA mortgage. A COE includes the following information:

• Your entitlement amount
• Any previous VA loans you took out
• Whether you’re exempt from paying the VA funding fee
• Any special conditions of your eligibility

You can request a COE from the VA by mail or online, or your mortgage lender can request it on your behalf.

Why is a COE necessary to get a VA home loan?

VA loans are only available to veterans, active-duty service members, and their eligible surviving spouses. A COE confirms you’re eligible for a VA loan. It also determines your VA loan entitlement, which is the amount of money the VA guarantees to your lender.

There are two primary types of entitlement: full and partial. 

• Full entitlement: If you’re using your VA loan benefit for the first time or have fully restored your benefit by paying off any previous VA loan, there are no loan limits, and you can borrow as much as you can afford to repay. VA guarantees the lender $36,000 in compensation if the lender defaults on a loan of $144,000 or less. If the loan is for more than that, the VA pays the lender up to 25% of the loan amount if you default.
• Partial entitlement: If you’re paying back another VA loan, or you previously defaulted on one, loan limits come into play. In this case, the VA guarantee is generally 25% of the county’s conforming loan limit, minus any entitlement already in use. Depending on the numbers, you may need a down payment to make up the difference.

Who qualifies for a VA loan Certificate of Eligibility?

There are specific qualifications that borrowers must meet to obtain a COE. For example, borrowers must serve for a specific number of days and be honorably discharged or retired. The following table outlines these requirements in more detail.

What to expect when getting a VA COE

Obtaining a VA COE is relatively simple. Here are the steps to follow.

Gather the correct documentation

The documents you need to apply for a COE depend on your military status. These records verify your service history and character of service.

• Veterans: DD214 (Certificate of Release or Discharge from Active Duty), which shows your character of service.
• Active-duty service members: Statement of Service, signed by your commander, adjutant, or personnel office.
• National Guard members:
  • NGB Form 22 (Report of Separation and Record of Service), and
  • NGB Form 23 (Retirement Points Statement and proof of the character of service).
  • If you’re still serving, a Statement of Service may be used instead.
• Reserve members:
  • Annual Retirement Points Statement and proof of honorable service, or
  • Statement of Service if you’re still serving.
• Surviving spouses:
  • VA Form 26-1817 if you’re receiving Dependency and Indemnity Compensation, or
  • VA Form 21P-534EZ and related documents if you’re not receiving DIC.

How you apply determines your wait time

You can apply for a COE online, by mail, or through your lender. The process can take anywhere from a couple of days to several weeks, depending on the complexity of your service record and military paperwork. 

VA website

To apply online, visit the official VA website and log in to your account or create one if you don’t already have one. If the VA already has everything they need, you may receive your COE immediately. Otherwise, it may take one to two days if your military service history is straightforward.

By mail

To apply by mail, you’ll need to fill out VA Form 26-1880 and submit the required documentation. You’ll mail this information to your regional loan center. It can take 4 – 6 weeks to receive a response, especially if documentation is missing or needs verification. 

Through your lender

Applying through a VA-approved lender is the fastest option if all your records are complete and accurate. Lenders specializing in VA loans are familiar with the process and can pull your COE within 24 – 48 hours.

Do you need a COE to refinance a VA loan?

Whether you need a COE to refinance depends on the type of refinance you’re applying for. You usually don’t need one for a VA Streamline Refinance (IRRRL) because your lender should be able to verify your existing VA loan information. 

However, a VA cash-out refinance requires a valid COE. That’s because applying for a cash-out refinance is like applying for a new loan and requires the same documentation. But you shouldn’t need a new copy unless your lender doesn’t have one or failed to keep a copy when you applied for your original loan.

Common issues when getting a VA COE

Obtaining a COE is straightforward for most people, but denials do happen. Here are some common issues that can arise and how to avoid them:

• Insufficient time served. To qualify for a VA loan, you must meet the minimum military service requirements. If your application is denied due to insufficient service time, you may be able to combine service terms to meet the eligibility requirements. For instance, if you served in both the Army and the National Guard, combining your active duty in both services may be enough to qualify you.
• Missing paperwork. Missing paperwork or errors on your application can lead to a denial. Fortunately, you can fix these mistakes by supplying the missing documents or correcting the errors.
• Dishonorable discharge. The VA typically requires an honorable discharge for VA loan eligibility, so a dishonorable discharge disqualifies you from getting a COE. If you find yourself in this situation, you can pursue a discharge upgrade or a character of service determination.
• Prior loan default. If you defaulted on a past VA loan, you may not have full entitlement. You’ll need to either use your one-time restoration of entitlement after paying off and selling the home, or repay the VA if it covered a lender’s loss, before your VA loan entitlement can be restored.

FAQ

Before you can take out a VA loan, you’ll need to apply for a VA COE either online or through your lender. Here’s some additional information about how the process works. 

My lender said it’s unable to request a VA COE for me. Why?

If you’ve had foreclosures in the past or received a dishonorable discharge, your lender may be unable to request a VA COE on your behalf. They’ll also be unable to obtain a COE for you if you don’t meet the eligibility requirements for a surviving spouse. Ultimately, your lender should explain why they were unable to request the COE. 

How long does it take to receive a VA COE?

It can take up to 6 weeks to receive a COE after you’ve submitted all the documentation and provided the relevant information. If you submit your VA COE through your lender or the eBenefits portal, you could receive it within minutes. You may get approved for a VA loan as soon as you receive your COE.

Does a VA COE expire?

A VA COE doesn’t expire, but there may be a situation where you need to update it or request a new COE. For instance, if you received your COE while on active duty, you may need to update it after discharge.

Does having a COE guarantee my VA loan approval?

No. A COE authorizes your lender only to review your VA loan application. Keep in mind, VA COEs are specifically for home loans and don’t apply to other VA-related benefits.

Do I need a COE for a Native American Direct Loan?

Yes. You’ll need a COE to apply to the Native American Direct Loan program. The NADL provides mortgages to Native American veterans who live on federal trust land. The tribal government with jurisdiction for the home you’re buying will need a memorandum of understanding that outlines how the program works on the reservation land.

The bottom line: Be patient after you request your Certificate of Eligibility 

Applying for a COE is the first step toward getting a VA loan to buy a home. If your service record is straightforward and there are no problems, you may receive your COE instantly or within a couple of days.

Once you’ve obtained your COE, you can start the application process for a VA loan with Rocket Mortgage.