Obtaining Certificate Of Eligibility To Qualify For VA Loans

In this blog, we will cover and discuss obtaining certificate of eligibility to qualify for VA loans. VA loans are the best mortgage loan program in the United States. However, VA loans are not for everyone. Our government created and launched VA loans to reward the brave men and women of our United States Armed Services to enable them to purchase a home with no money down and 100% financing. The VA has much lenient mortgage lending requirements with regard to credit and income versus other loan programs. Mortgage rates on VA loans are lower than any other loan program. Borrowers do not have to come up with closing costs in most cases. Closing costs are often covered by a seller concession and/or lender credit.

How To Obtain a Certificate Of Eligibility To Qualify For VA Loans

The VA allows up to 4% in sellers concessions by sellers to cover home buyers closing costs. Borrowers need to be active and/or retired members of one of the branches of the United States Military with a valid Certificate Of Eligibility (COE). Obtaining a Certificate Of Eligibility (COE) is easy. It can be obtained online by logging in to the VA COE Portal. Through the VA COE Portal, the borrower can see if they qualify and what their eligibility is. Or the loan officer can help borrowers in Obtaining Certificate Of Eligibility.

Certificate Of Eligibility Versus Qualifying For VA Loans

In this blog, we will discuss qualifying for VA Loans and Obtaining Certificate Of Eligibility. We will also explain obtaining a certificate of eligibility for borrowers. Our loan officers at Gustan Cho Associates normally help borrowers in obtaining certificate of eligibility for borrowers. Just because borrowers go in obtaining certificate of eligibility from the VA does not mean they automatically qualify for VA Mortgages. Borrowers need to meet the VA Guidelines and meet the lender’s qualification requirements.

Minimum VA Eligibility Requirements

All borrowers need to meet the minimum VA Eligibility Requirements mandated by the United States Department of Veterans Affairs (The VA) to qualify for VA Loans. However, lenders may have additional lending requirements that are above and beyond VA Agency Guidelines. These additional lending requirements are called lender overlays. Gustan Cho Associates has no lender overlays on VA Loans.

Minimum VA Mortgage Guidelines And Requirements

Here are the minimum VA Agency Guidelines:

  • 100% financing with no down payment required
  • No closing costs if the borrower can get a sellers concession and/or lender credit
  • No minimum credit score requirement
  • No maximum debt to income ratio requirements as long as the borrower can get an AUS Approval
  • 2 years out of bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • Borrowers can qualify for VA Loans during Chapter 13 Bankruptcy Repayment Plan via manual underwrite with Trustee Approval
  • There is no waiting period after the Chapter 13 Bankruptcy discharged date with manual underwriting
  • Any discharge seasoned less than 24 months after Chapter 13 Bankruptcy discharge are manual underwrites

Outstanding Collections and Charge Off Accounts do not have to be paid off to qualify for VA Home Loans.

Instructions On How To Go About In Obtaining Certificate of Eligibility

Not all active and/or retired members of the U.S. Military are awarded a Certificate Of Eligibility. Only veterans with a Certificate Of Eligibility can qualify for VA Loans. Michael Gracz, the National Sales Manager of Gustan Cho Associates issues the following statement on how to go about obtaining certificate of eligibility:

A DD 214 form is required and a copy should be given to whoever is obtaining the VA COE and this applies to the following: Veteran, current or former National Guard, or Reserve member. For Active Duty Service member and Current National Guard or Reserve members who have never been federal active reserves: Statement regarding current service should be signed by (or direction of) the adjutant, personnel office, commander of the unit, or higher headquarters showing full name, social security number, date of birth, entry of date on active duty, the duration of any lost time, and the name of the command providing information.

Furthermore, Mike Gracz adds:

For discharged members of the National Guard who have never been activated for federal active service: NGB Form 22, Report of Separation and Record of Service for each period of National Service; and NGB Form 23, Retirement Points Accounting, and proof of character in service. For discharged members of the Selected Reserve who have never been activated for Federal active service: Copy of latest annual retirement points statement; and Evidence of honorable service.

With regards to surviving spouses of veterans, the following apply:

For surviving spouses in receipt of Dependency & Indemnity Compensation (DIC) benefits: Submit VA form 26-1817. DD 214 if available. For surviving spouses that are not receiving DIC benefits: VA Form 21-534. DD 214 if available. Marriage License. Death Certificate or DD form 1300.. Mail to the appropriate address by following PMC States

Steps On How To Apply For A Certificate Of Eligibility

Apply For A Certificate Of Eligibility

Before a pre-approval letter is issued on a VA Loan, the loan officer should make sure he or she has all the proper paperwork. Borrowers can apply for the COE online through the eBenefits portal if the borrower wants to get their COE by themselves without the help of the lender. Most lenders help borrowers in obtaining certificate of eligibility through the WebLGY system. The WebLGY system permits lenders to locate an eligible borrower to search for their certificate of eligibility if one already exists or order a new certificate of eligibility. The search is done by searching the veteran’s name and social security number. If there are no results, then a new certificate of eligibility needs to be ordered. Lenders are experts in getting the COE for borrowers.

How To Get A Copy Of A Lost DD214

Alex Carlucci, a Senior Vice President of Gustan Cho Associates, is one of the top producers of VA Mortgages at Gustan Cho Associates Mortgage Group. Alex Carlucci also is a contributing associate editor at Gustan Cho Associates. Alex has helped countless borrowers who lost their DD214 get a copy so they can start the VA Mortgage Process. Alex has issued the following statement on how to get a copy of a lost DD214:

The NPRC holds historical Military Personnel records of nearly 100 million records and a majority of these records are paper-based. There are a few options when obtaining a DD 214: Borrowers can request a copy online by visiting the National Archives Website by going to the section to request DD 214/Seperations documents eVetRecs (Online). Can request by filling out the Standard Form 180 (SF-180) and mailing to the following address: Here is the NPRC mailing address: National Personnel Records Center Military Personnel Records | 1 Archives Drive | Saint Louis, MO 63138 | Phone 314-801-0800. Or fax the standard form (SF 180) to: 314-801-9195. DD 214 response time varies and talking to an experienced Mortgage Loan Originator will help with the VA loan process. After the request has been made, a Veteran can check the status of the military service records requests.

For more information on this topic or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at [email protected] The Team at Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, and holidays.

How To Go About Obtaining Certificate Of Eligibility To Qualify For VA Loans

VA loans are the best home mortgage program in the United States. VA loans have the lowest mortgage rates than conventional loans.. Lenders are more than eager to originate and fund VA loans to eligible borrowers with a COE at low rates and 100% financing due to the government guarantee. VA loans do not have a maximum loan limit like other loan programs. VA loans do not have a minimum credit score requirement nor a maximum debt to income ratio cap as long as borrowers can get an approve/eligible per automated underwriting system (AUS).

Obtaining Certificate Of Eligibility During Chapter 13 Bankruptcy Repayment Plan

Borrowers in the Chapter 13 Bankruptcy repayment period can qualify for a VA loan via manual underwriting. Chapter 13 Bankruptcy does not need to be discharged. There are no waiting period requirements after the Chapter 13 Bankruptcy discharged date. VA loans have one of the most lenient credit and income agency mortgage guidelines than any other loan program. However, not every borrower can qualify for a VA loan. Only active and/or retired members of the United States Armed Services with a Certificate of Eligibility (COE) are eligible to qualify for VA loans.

Obtaining Certificate Of Eligibility and Requirements From National Guard Members

In this paragraph, we will discuss obtaining Certificate of Eligibility and the requirements for the National Guard. Most Americans have heard of VA loans offer to our veterans. But may not understand the requirements if they served in a branch such as the National Guard. We have done many VA loans for individuals who served in the National Guard and Army Reserves. Their requirements are slightly different, we will go over those in this blog. In the following paragraphs, we will cover and discuss obtaining certificate of eligibility requirements on VA loans.

Obtaining Certificate Of Eligibility for Members of The National Guard

If you serve in the National Guard or the Reserves you may qualify for VA benefits.  Obtaining Certificate Of Eligibility requirements pertains to obtaining VA mortgage financing. Borrowers may qualify for a VA mortgage if they go about obtaining Certificate of Eligibility to see if they have the proper VA entitlements. Borrowers need to meet the requirements by having Active Duty (Title 10) or National Guard Duty (Title 32).  Active Duty (Title 10) – full-time duty.

EXAMPLE a unit deployment during the war, including travel to and from such duty. National Guard Duty (Title 32) –

  • full-time duty
  • EXAMPLE Responding to a national emergency or as an active Reserves participant where you receive payment from the federal government

We will discuss and cover the VA Certificate Of Eligibility Requirements on VA loans.

Obtaining Certificate Of Eligibility To Become Eligible For A VA Loan

How To Become Eligible For A VA Loan

 Let’s dig into this in a bit more detail. Individuals who have served in the Army Reserves or the National Guard may still obtain a VA home loan. These loans are put in place to help service members and Veterans purchase a primary residence. Below are the requirements to meet in order to qualify for a VA guaranteed home loan. You must meet at least one of the below:

  • Serve at least six full years in the service or in the Selected Reserves AND
  • Were discharged honorably OR
  • Placed on the retired list OR
  • Moved to the Standby Reserves or an element of Ready Reserves other than the Selected Reserve after service characterized as honorable OR
  • Continue to serve in the selected Reserve longer than six years OR
  • Served 90 days or longer during active duty (Title 10 above) during a wartime period OR 
  • Were discharged from active duty for a service-related disability

If you meet the requirements above, you will be issued a Certificate of Eligibility from the office of the VA. You must provide this to your lender in order to obtain a VA mortgage. There are times where we will need to help you go about obtaining Certificate of Eligibility. Please see our COE BLOG for more details. At Gustan Cho Associates, we have closed and funded many VA-eligible clients. Most of the time, a VA loan is the best loan available. Mainly due to no down payment requirement and no monthly mortgage insurance.

Qualifying For VA Home Loan With a Mortgage Company With No Lender Overlays

How do you start obtaining certificate of eligibility so you can complete a VA Loan application? Gather the following information:

  • Last 60 Days Bank Statements – to source money for escrows
  • Last 30 Days Pay Stubs
  • Last Two Years W2’S
  • Last Two Years Tax Returns
  • Driver’s License
  • Certificate of Eligibility

You will send these documents to your loan officer and then complete an online application. This application is very simple and straightforward. It will provide your loan officer with the required information to start a loan application. For any specific questions please contact Mike Gracz on 630-659-7644 or text us for a faster response. Or email Michael Gracz at [email protected]. we are available 7 days a week to help you with your mortgage needs. 

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