The Veterans Administration (VA) loan is a great mortgage financing program for military members and their surviving spouses.
VA loans provide a large number benefits as opposed to conventional mortgage loans. One of these is that VA loans are guaranteed by the Department of Veterans Affairs. In the event of a default, the lender is fully protected. In addition to this, borrowers can benefit from VA loan’s flexible terms and conditions, such as no down payment.
In order to qualify for a VA loan, borrowers are required to submit a Certificate of Eligibility (COE) to lenders. The COE plays an integral role in the loan application process.
What is a CEO
Before applying for a VA loan, a lender typically asks the loan applicant for a COE. The COE demonstrates to the lender that the borrower has met the loan’s service requirements.
In other words, the document is proof of an applicant’s eligibility and qualification for the loan.
Mortgage borrowers must meet one of the following requirements for seeking a VA loan:
-Served 181 days during peacetime
-Served 90 days during war time
-Spent 6 years of service in the Reserves or National Guard
-Be a surviving spouse of a service member who lost his life on duty
What kind of information does it contain?
The COE is a straightforward document that takes 15 minutes to complete. Generally, the document has sections that ask for the loan applicant’s basic information, which includes their complete name, date of birth, address, social security number and more.
Coupled with personal data, it also asks about the applicant’s service history, including first date on duty, total number of years of service, duration of any lost time, and more.
On the other hand, surviving spouses are required to include their spouse’s and their own social security numbers on VA form 26-1817.
Who provides it?
You can request the Veterans Association for the COE. Another easy solution is to ask your lender for it. Your lender can get the form from the Veterans Association on your behalf.
Once you receive a print of the document, carefully fill it out. Don’t miss out any important detail.
Thereafter, you can submit it to the Veterans Association for approval. In most cases, the Veterans Association can take up to 6 weeks to process your application.
Keep in mind, the COE does not guarantee that you will receive the VA loan. It simply establishes that you have met the minimum loan service standards.
VA loan processing depends on a series of factors, which includes but is not limited to, the borrower’s credit score and debt level.
If you quick and easy guidance applying for a VA loan, our mortgage experts would be happy to assist you! Call (844) 433-4626 now to connect with them.