What is the certificate of eligibility?
The certificate of eligibility (“COE”) is a verification document issued in favor of a veteran by the Veteran Administration (“VA”) that the veteran is suitable for a VA loan.
There are service requirements that a veteran must have fulfilled to qualify for a VA loan. Once these requirements are met, the Veteran Administration through its secretary issues a certificate of eligibility which bears the name of the veteran/applicant to show that he or she is qualified to obtain a loan. In essence, the certificate of eligibility serves as proof of service for the veteran.
While it is a very short and simple document, it can be difficult to obtain or the process may be prolonged without the help of credible agents. The certificate can be applied for online where the applicant can fill in the details required. Veterans who have lost their certificates of eligibility may also use the online procedure to obtain a new one.
The certificate comes with a code called the “entitlement code”. This two-digit number shows the lender the veteran’s military service history and whether the applicant should be exempted from the VA Funding Fee.
It should be noted that the COE is not a guarantee that the loan will be granted.