A VA COE is required if you’re a first time VA loan home buyer. In some cases, you’ll need one to buy your next home or to refinance. A COE shows a lender that you’ve met the VA eligibility requirements, which includes a specified number of days served during peacetime, days served during wartime, or years of service in the Reserves or National Guard. Surviving spouses of service members are also eligible to receive their COE and apply for a VA loan.
How to apply for a VA Certificate of Eligibility
The first step in obtaining a VA COE is to gather the important information you’ll need for the application. Depending upon your status – veteran, active service member, current/former National Guard or Reserve member – you’ll need discharge papers or a statement of service. Your discharge papers are also known your "DD Form 214" or just your "DD-214". Freedom Mortgage can assist you with obtaining your COE. Contact us at 877-220-5533 to get started.
The VA provides a helpful guide that breaks down what information you’ll need to apply for a COE based on your type of service. Once you have the necessary documents handy, there are two ways you can apply.
- Online – Use the VA eBenefits system to apply electronically once you’ve created an account. It can take approximately 5 minutes to submit a request online and you’ll receive your COE right away if approved.
- By mail – Complete Form 26-1880 (Request for Certificate of Eligibility) and mail it to the address shown. The turnaround time for approval and delivery of a COE is approximately 4-6 weeks.
Entitlement Codes and Funding Fees
If you meet the VA’s minimum service requirements, you’ll receive a COE. It will show basic information like your name, Social Security number, and type of service. You’ll also notice it includes an "entitlement code." This code is provided on every Certificate of Eligibility and there may be more than one shown. There are 11 entitlement codes:
- 01 – World War II
- 02 – Korean War
- 03 – Post-Korean War
- 04 – Vietnam War
- 05 – Entitlement Restored
- 06 – Surviving Spouse
- 07 – Spouse of POW/MIA
- 08 – Post-World War II
- 09 – Post-Vietnam
- 10 – Persian Gulf War
- 11 – Selected Reserves
Most codes correspond with a specific time or type of service. Entitlement Code 5 ("Entitlement Restored") indicates that you’ve utilized your VA loan benefit at least once before but that you are free to use your VA loan benefit again. Codes 6 and 7 pertain to spouses of service members and indicate their eligibility to apply for a VA loan.
Most military service members and veterans buying or refinancing with a VA loan have to pay a one-time VA funding fee. The fee is used to protect the VA loan program against borrowers who default on their mortgage. The COE will indicate whether you’re exempt from paying it. VA loan applicants who collect (or are eligible for) compensation for a service-related disability or are an eligible surviving spouse are exempt, meaning they do not have to pay the VA funding fee.
Can I get a COE if I don’t meet minimum service requirements?
The VA states that even if you don’t meet the minimum service requirements, you may still be eligible for a COE if you’ve been discharged for one of the following reasons:
- Convenience of the government (you’ve served at least 20 months of a two-year enlistment)
- Early out (you’ve served 21 months of a two-year enlistment)
- Reduction in force
- Certain medical conditions
- Disability related to your service
Surviving spouses applying for a COE
A surviving spouse of a deceased service member can obtain a COE for a VA loan if at least one of these three situations applies for the veteran or active military.
- They are missing in action or a prisoner of war.
- They died either during their service or from a service-related disability and you did not remarry.
- They died while in service or from a service-related disability and you didn’t remarry before you were 57 years old or before December 16, 2003.
- They had been totally disabled and then died, but their disability may not have been the cause of death.
If you’re a surviving spouse of a veteran or service member and applying for a VA loan, you’ll need to gather information such as your marriage license along with your spouse’s separation papers and death certificate. You’ll also need to complete a form depending on whether or not you are receiving Dependency & Indemnity Compensation.
Does a COE mean I am guaranteed VA loan approval?
The COE means you are eligible to receive a loan through the VA program, but is not a guarantee that you’ll be approved. You’ll still need to meet certain credit score and income conditions, and the property you are purchasing will be subject to a VA appraisal and inspection that must meet their Minimum Property Requirements.
Freedom Mortgage is the #1 VA lender1
We’re ready to answer your questions about VA loan purchases or streamline refinancing of your current VA loan! To speak with a Freedom Mortgage Loan Advisor, call us at 877-220-5533 or Get Started online.
1. Inside Mortgage Finance Jan-Mar 2021