VA LOANS

You have served 90 consecutive days of active service during wartime, OR

You have served 181 days of active service during peacetime, OR

You have 6 years of service in the National Guard or Reserves, OR

You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.

While you don't need your Certificate of Eligibility (COE) in hand to apply for a VA loan, it is an important part of VA loan eligibility. Your COE provides the lender with confirmation that you qualify for VA loan benefits.

Again, it is not necessary to obtain your COE before applying for a VA loan as most VA lenders are able to instantly pull your COE through the VA’s automated system. In fact, nearly all VA loan COEs are requested electronically, and about two-thirds of certificates are issued immediately, according to the VA.

There are three basic ways you can obtain your COE for a VA loan, which include:

1. Applying through a VA approved lender

2. Applying online through the VA’s eBenefits portal

3. Applying by mail with VA Form 26-1880

In addition to credit score, the VA requires borrowers to maintain a certain amount of income left over each month after all major expenses are paid. The excess is meant to cover typical family needs, such as food, transportation, and medical care, and is known as residual income.

By enforcing residual income requirements, the VA increases the chances of its borrowers earning sufficient income to meet all financial obligations, and also ensures borrowers have a cushion in the event of an emergency.

The VA loan process typically takes 30 to 45 days once you’re under contract on a home, although every buyer’s situation is different. Applying for a VA loan doesn’t obligate you in any way to a particular lender or to moving forward with the homebuying process.

Here’s a look at the four basic steps to applying for a VA Home Loan:

1. Familiarize yourself with the broad VA loan eligibility requirements above

2. Contact a VA-approved lender and start your VA Loan application

3. Obtain your Certificate of Eligibility through your lender or on your own

4. Finalize your loan application and provide all necessary paperwork to your lender, including W2s, tax returns and additional financial information