Understanding Basic VA Loan Eligibility Requirements & your Certificate of Eligibility

The 4 Basic requirements for VA loan eligibility

1. Valid Certificate of Eligibility (COE)

2. Must have suitable credit

3. Must have adequate income

4. Must meet minimum property requirements

details of  getting your coe

Here are some basic qualification requirements set forth by the VA in the 2019 Lenders Handbook – VA Pamphlet 26-7.

The VA has 4 very simple requirements to be able to leverage your VA benefits to purchase a home. This is so simple, it takes a Loan Officer to complicate it.

VA is a benefit to the Veteran. The VA loan encourages lenders to make the loan to all qualified veterans who qualify. The VA leaves it up to the institution lending the money to use good judgment when it comes to the vague VA loan guidelines.

 Veteran can order from www.e-benefits.gov

 Lenders can pull from WEBLGY

 Must have for pre-approval

 Must have to order appraisal

 Must have sufficient entitlement amount

 Tells lenders if service connected disability

Proof of Service if requested

 Active Duty: Statement of active duty (alive and well letter before closing)

 Can be difficult to get at times.

 Prep the buyer up front that this will be needed

 Regular Veterans: DD Form 214, Certification of Release or Discharge From Active Duty

 Guard/Reserves: Proof of participation in the National Guard or Reserves, NGB Form 22, Separation and Record of Service

Common Eligibility Issues

 Dishonorable discharge
 Reserves and Guard: <6 years and not deployed
 VA foreclosures in past (can be cleared up but can take time)
 Veterans who do not have their records
 Military Record Archives (866) 272-6272

Sample Verification Of Eligibility