The VA determines your eligibility and, if you are qualified, the VA will issue you a Certificate of Eligibility to be used in applying for a VA loan. Should you need to request a certificate from the VA, you must complete VA Form 26-1880, Request for a Certificate of Eligibility. You can also apply for a COE online through the e-benefits portal, or your VA lender can request this on your behalf. The following questions and answers will cover the most frequently asked questions concerning the COE:
You are not eligible for VA financing based on the following:
The veteran should obtain a Certificate in Lieu of Lost or Destroyed Discharge. Any VA Veterans Benefits Counselor at the nearest VA office will assist a veteran in obtaining necessary proof of military service.
No. Home loan entitlement is generally good until used. Active duty homebuyers with sufficient time in service may be able to request an Automated Certificate of Eligibility through the Department of Veterans Affairs. If they are discharged or released from active duty before using their entitlement, a new determination of their eligibility must be made, based on the length of service and the type of discharge received.
Originally, the maximum entitlement available was $2,000; however, legislation enacted since that time has provided veterans with increases in basic entitlement up to the present maximum of $36,000 (or up to $106,025 for certain loans over $144,000). The $36,000 may, however, be reduced if entitlement has been used before to get a VA loan. The amount of remaining entitlement can be determined by subtracting the amount of entitlement used from the current maximum available entitlement of $36,000. (See question 8 below for information on using remaining entitlement.)
No. The amount of entitlement relates only to the amount VA will guarantee the lender against loss.
If you have used all or part of your entitlement, you can get that entitlement back to purchase another home if the following conditions for "restoration" are met:
Restoration of entitlement is not automatic. You must apply for it by completing and returning VA Form 26-1880 to any VA regional office or center. Application forms for substitution of entitlement may he requested from the VA office that guaranteed the loan.
Yes. Veterans who had a VA loan before may still have "remaining entitlement" to use for another VA loan. The current amount of basic entitlement available to each eligible veteran is $36,000. But VA borrowers in most places have an additional layer of bonus entitlement worth $70,025. Most lenders require that a combination of the guaranty entitlement and any cash down payment must equal at least 25 percent of the reasonable value or sales price of the property, whichever is less. Veterans who have another active VA loan or who have defaulted on a previous VA loan may be able to utilize this bonus entitlement.
Yes. The guaranty is based on each veteran’s interest in the property, but the guaranty on the loan may not exceed 40 percent of the loan amount or $36,000 ($106,025 for certain loans over $144,000).
They may acquire property jointly with VA loans, but they can only combine entitlement up to the maximum guaranty for their county. There’s also no maximum loan amount with VA loans.
Yes, but the guaranty is based only on the veteran's portion of the loan. The guaranty cannot cover the nonveteran's part of the loan. This does not apply to a loan to a veteran and spouse when the spouse is not a veteran. (Consult lenders to determine whether they would be willing to accept applications for joint loans of this type.)
No. The veteran must still be found to be qualified for the loan from an income and credit standpoint.
If you have further questions about the Certificate of Eligibility, reference these FAQs or contact your nearest VA regional office.