You will need a VA Certificate of Eligibility (COE) to apply for a VA Loan. Most veterans may not know that their VA lender may be able to pull an automated COE in just minutes for free. This will be a great help to you in the VA loan process, avoiding any confusion or delays in the process. Let’s not get too far ahead of ourselves. The VA loan process is complex, and the COE is just one part. Let’s boil down the basics of what a VA home loan COE is, what is on it, who is eligible, and unlock the secrets to getting your COE in minutes.
What Is a VA Certificate of Eligibility?
A VA Certificate of Eligibility (COE) (VA Form 26-1880) is an official VA document that verifies that a veteran, service member, or eligible surviving spouse qualifies for a VA-backed home loan. Eligibility is based on meeting military service requirements, and lets the lender know that you are eligible for this benefit. We will cover eligibility requirements later in this article.
What Information Is on the COE?
Entitlement Code: The basis for your eligibility for VA home loan benefits (see the next section for what these codes mean). VA Funding Fee: A payment required to secure your VA loan. The amount depends on loan type, if this is your first VA loan, and how much you are putting down. Funding fees range from 1.5% up to 3.3%. The fee applies to the loan amount, not the purchase price of your home. If you are a veteran with a service-connected disability, you are exempt from the funding fee. Prior loans charged to entitlement: This section will show the amount of entitlements currently in use from previous VA home loans. VA Entitlement Amount: This shows you the portion of your VA home loan benefit currently available. Your basic entitlement is $36,000 for a VA-backed mortgage up to $208,187, with no loan limit for full entitlement. Conditions of the COE: This section spells out any requirements or stipulations related to your eligibility. Conditions related to your funding fee or links to additional state-related Veterans benefits.
