How To Get A VA Certificate Of Eligibility (COE)

If you’re a veteran looking to buy a home, taking out a VA loan could be an excellent option for you. This government-backed loan comes with low interest rates and 100% financing. VA mortgage loans can also help eligible borrowers buy a home with zero money down. In order to take out a VA loan, you’ll need to meet mortgage lender qualifications, including minimum credit score and debt-to-income ratio (DTI) requirements.

Before you can begin the application process, you need to receive your VA loan Certificate of Eligibility (COE). A COE is a document that shows your mortgage lender that you’re eligible for a VA loan.

Let’s take a look at what exactly a VA COE is and how to get a VA Certificate of Eligibility in the home buying process.

What Is A VA Certificate Of Eligibility (COE)?

To obtain a VA loan, you’ll need to receive a VA Certificate of Eligibility, or VA COE, which verifies your status as a qualifying veteran, service member or surviving spouse. You can receive this form from the U.S. Department of Veterans Affairs (VA).

A VA loan COE proves to your lender that you meet the requirements to take out a VA loan. Some VA loan requirements include the following:

• Credit score: The credit score you need to qualify for a VA loan varies by lender. At Rocket Mortgage^®, the minimum VA loan credit score requirement is 580.
• Debt-to-income ratio (DTI): While the VA doesn’t have a debt-to-income ratio (DTI) limit for borrowers, your mortgage lender may have specific DTI standards. At Rocket Mortgage, the DTI requirement depends on factors like your credit score and down payment amount, but you typically want to be at or below 45%.
• Down payment: VA loans don’t require a down payment. However, you may need to meet specific lender requirements in order to qualify for a no-down-payment VA loan. For example, with Rocket Mortgage, you’ll need to have a credit score of at least 580 in order to qualify for no down payment.
• Property type: The property you finance with a VA loan must be your primary residence and you must occupy the home within 60 days of the purchase. You can’t buy an investment property or vacation home with a VA mortgage loan.

Who Qualifies For A VA Loan Certificate Of Eligibility?

VA loans are offered to military service members including veterans, active duty service members, National Guard and Reserve members and qualifying spouses. However, the requirements differ depending on whether you served during peacetime or active wartime.

Requirements also change if you were discharged due to a service-related disability. Here is an overview of each of these eligibility requirements:

• Veterans: If you’ve served for at least 90 days during active wartime or 181 days during peacetime, you’re eligible for a VA COE. However, you don’t need to meet these requirements if you were discharged due to a service-related disability.
• Current service members: If you’re currently on active duty, and have served at least 90 days continuously, you’re eligible for a VA
• National Guard and Reserve: You’re eligible for a COE if you served at least 90 days of active duty or 6 years of honorable service. In addition, you’ll qualify if you’ve had 90 days of service under Title 32 and at least 30 days were consecutive.
• Surviving spouses: If you’re the surviving spouse of someone who died in service, you may be eligible for a VA To qualify, the veteran must have either died in service or from a service-related disability, among other VA requirements for a spouse.

How To Get A VA COE

You can apply for a VA COE online or by printing out the request form. You can also work directly with your lender to approve VA COE requests, though not all lenders are VA-approved lenders or service VA loans.

It’s recommended that borrowers provide proof of service when applying for a VA COE. That includes the following documentation:

• Copy of form DD-214 (discharge or separation proof for veterans and current or former National Guard and Reserve members)
• Statement of service signed by your commander, adjutant, or personnel officer (for active duty service members and current or former National Guard and Reserve members)
• Report of Separation and Record of Service for each period of service (for discharged National Guard)
• Retirement Points Statement and proof of the character of service (for discharged National Guard members)
• Copy of your latest annual retirement points (for discharged Reserve members)
• Proof of honorable service (for discharged Reserve members)

Why Are VA COEs Necessary For VA Home Loans?

Without a COE, your lender cannot verify that you qualify for a VA loan. According to your Certificate of Eligibility, you have a certain amount of entitlement, but what exactly does that mean?

Your VA loan entitlement is the amount the VA