Certificate of Eligibility (COE)
Definition
A Certificate of Eligibility (COE) is a document issued by the Veterans Administration (VA) that verifies a veteran’s or service member’s eligibility to obtain a VA-backed mortgage loan. This certificate is based on the individual’s service record, indicating they have met the minimum service requirements and have been honorably discharged.
Purpose
The primary purpose of the COE is to provide proof of a service member’s entitlement to participate in the VA Home Loan Program. This program offers various benefits such as no down payment, competitive interest rates, and no private mortgage insurance (PMI).
Examples
- Honorably Discharged Veterans: A veteran who served 90 consecutive days during wartime is eligible for a COE, which can then be used to apply for a VA home loan.
- Active Duty Service Members: A service member currently on active duty for more than 90 continuous days during wartime or 181 continuous days during peacetime is entitled to receive a COE.
- Reservists and National Guard Members: After completing six years of honorable service, they may apply for a COE to qualify for a VA mortgage.
Frequently Asked Questions
How do I apply for a Certificate of Eligibility (COE)?
You can apply for a COE online through the VA’s eBenefits portal, by mail using VA Form 26-1880, or through your lender who may have the ability to request it electronically.
What documents are needed to obtain a COE?
- For Veterans: DD Form 214 (Certificate of Release or Discharge from Active Duty).
- For Active Duty Members: A current statement of service signed by the command.
- For National Guard or Reserve Members: NGB Form 22 (Report of Separation and Record of Service) or the most recent annual retirement points statement.
Can I still get a COE if I have used a VA loan in the past?
Yes, you can reuse your VA loan benefits if the previous loan was paid in full and the property sold, or if the VA loan is assumable and the new buyer substitutes their entitlement for yours.
- VA Home Loan: A mortgage loan program established by the United States Department of Veterans Affairs to assist veterans, active-duty service members, and eligible surviving spouses.
- DD Form 214: A document issued by the Department of Defense upon a military service member’s retirement, separation, or discharge from active duty.
- eBenefits Portal: An online resource for veterans, service members, and dependents to access benefits and related information.
Online References
Suggested Books for Further Studies
- “VA Loans: Everything Veterans Need to Know” by Bruce W. Banner
- “The Home Buying Process for Veterans” by David M. McPhail
- “VA Loans Insider: Guide to Military Home Ownership” by Greg Richardson
Fundamentals of Certificate of Eligibility (COE): Insurance Basics Quiz
### What primary purpose does a Certificate of Eligibility serve?
- [ ] To provide medical benefits.
- [x] To indicate eligibility for a VA mortgage loan.
- [ ] To certify education benefits.
- [ ] To grant access to national parks.
> **Explanation:** A Certificate of Eligibility (COE) is used to indicate that a veteran or service member is qualified for a VA-backed mortgage loan.
### What is required for a veteran to receive a COE?
- [ ] An honorable discharge and a specific number of days on active duty.
- [ ] Any type of discharge regardless of service time.
- [ ] Completing an online test.
- [ ] Only an active duty status.
> **Explanation:** To receive a COE, veterans must have an honorable discharge and meet the minimum active duty service requirements.
### Can active duty service members obtain a COE?
- [x] Yes, if they serve more than 90 continuous days during wartime.
- [ ] No, only veterans can obtain a COE.
- [ ] Yes, regardless of service time.
- [ ] Only after they leave the service.
> **Explanation:** Active-duty service members can obtain a COE if they serve more than 90 continuous days during wartime or 181 days during peacetime.
### Which form is needed for veterans to apply for a COE?
- [ ] VA Form 28-8855
- [x] VA Form 26-1880
- [ ] DS Form 1790
- [ ] AR Form 1201
> **Explanation:** Veterans need to use VA Form 26-1880 to apply for a Certificate of Eligibility.
### Are members of the National Guard eligible for a COE?
- [x] Yes, if they honorably serve for at least six years.
- [ ] No, they are not eligible.
- [ ] Only after ten years of service.
- [ ] Only if on active duty.
> **Explanation:** National Guard members are eligible for a COE after honorably serving for six years.
### How can you apply for a COE?
- [x] Online, by mail, or through a lender.
- [ ] Only by visiting a VA office.
- [ ] Only through a military command.
- [ ] By obtaining it directly from real estate agents.
> **Explanation:** You can apply for a COE online, by mail, or through a lender who can request it electronically.
### What document proves a veteran’s honorable discharge?
- [ ] NGB Form 22
- [ ] DD Form 2168
- [x] DD Form 214
- [ ] SF-86
> **Explanation:** DD Form 214, also known as Certificate of Release or Discharge from Active Duty, proves a veteran’s honorable discharge.
### What is a DD Form 214?
- [ ] A document certifying VA benefits.
- [ ] An application form for a VA loan.
- [x] A release or discharge document.
- [ ] A pay statement form.
> **Explanation:** DD Form 214 is a document certifying a military service member's release or discharge from active duty.
### If a veteran has used a VA loan in the past, can they obtain another COE?
- [x] Yes, if the previous loan has been paid off and the property is sold.
- [ ] No, veterans only get one COE.
- [ ] Yes, regardless of previous loan status.
- [ ] Only if they re-enlist.
> **Explanation:** Veterans can obtain another COE for a new VA loan if the previous loan is paid in full and the property is sold.
### Which portal can be used to apply online for a COE?
- [ ] DoD ePortal
- [x] VA’s eBenefits portal
- [ ] MyPay
- [ ] IRS.gov
> **Explanation:** The VA eBenefits portal is the platform for veterans and service members to access and apply for their Certificate of Eligibility online.
Thank you for learning about the Certificate of Eligibility (COE) and participating in our quiz. Your continued efforts will ensure a solid understanding of VA home loan benefits!
