How to Obtain Your Certificate of Eligibility

I often get asked how one can obtain a Certificate of Eligibility, so I decided to ask an expert and share the information with you. Kevin Pearia blogs for VA Mortgage Center.com, the nation’s leading VA-dedicated lender.  In 2010 alone, VAMC helped secure over $1 Billion in VA financing for military members and their families.

VA home loans offer veterans and active duty service members a great opportunity to purchase for zero money down.  Not only can eligible military members benefit from not having to pay a down payment, but they also benefit from competitive interest rates and flexible loan terms.  Eligibility requirements for a VA loan are relatively lax, however, military members interested in securing a VA loan to finance the purchase of their home, will be required to submit a Certificate of Eligibility.

What is a Certificate of Eligibility?
A Certificate of Eligibility is a form given by the Veteran’s Administration office which states whether or not a service member is eligible for a VA Home Loan.  Military members who are able to receive a COE generally meet the following guidelines:
•    Have served at least 3 months on active duty during war time or served 181 days on active duty during a time without conflict
•    Have served 6 years in the military Reserves or National Guard

How Do I Obtain my COE?
Potential borrowers have two ways they can receive their Certificate of Eligibility: either they can let the lender get it for them or do so themselves.  Lenders are able to obtain COEs through Automated Certificates of Eligibility, an online system otherwise known as ACE which only lenders have access to.  With this program, lenders are able to access COEs in a matter of minutes only using the service member’s name a social security number.  However, those interested in allowing a lender to find their COE should note that the program works best for those who:
•    Are first-time VA Home Loan users
•    Were discharged after 1980
•    Served for at least 2 years on active duty

ACE will not certify a military member who is a part of the Reserves or National Guard, with a previous VA foreclosure, or with out the necessary time of service, as well as surviving spouses.  These individuals may have to obtain a Certificate of Eligibility themselves, and the process is a little more time consuming.  To receive a Certificate of Eligibility manually, military members must complete VA Form 26-1880 and submit it in one of the following ways:
∑    Online:  To fill out and submit VA Form 26-1880, prospective borrowers need to visit the Veterans Information Portal.  There they will find easy to follow guidelines for filling out the form.
∑    By Mail:  Surviving spouses may only submit a request for a COE by mail, and must submit VA Form 26-1817 to do so.  Military members must still submit VA Form 26-1880.  Both types of forms must be mailed to the VA Winston-Salem Eligibility Office.

A VA Home Loan is one of the most innovative lending programs on the market when it comes to helping military members achieve homeownership.  Borrowers will reap many benefits, and will be able to purchase the home of their dreams with little out-of-pocket expense.  All they need to do is to call a VA Loan Specialist and secure their Certificate of Eligibility, and they will be on the right track to becoming a home owner.