VA Certificate Of Eligibility (COE)

Your VA Certificate Of Eligibility (COE) Paves The Way To Homeownership

For many Americans, homeownership is a lifelong dream. For Veterans who have served our country, fulfilling this dream is made easier through the VA loan program. By obtaining a Certificate of Eligibility (COE) and qualifying for a government-backed VA loan, active duty personnel and Veterans can obtain a low interest 15 or 30 year loan with no down payment.

In our society, attaining homeownership is not always easy. Though the housing market has had its ups and downs these last few years, homeownership remains the goal of most people, as a recent survey from Fanny Mae’s Economic and Strategic Research Group verifies. Ninety percent of respondents aspired to homeownership, but felt that it would be difficult to obtain a mortgage. VA loans have made this dream achievable for more than 20 million Veterans since the program first launched in 1944.

How To Obtain A Certificate Of Eligibility

Having a Certificate of Eligibility, when coupled with a proof of service DD 214, is necessary to obtain most VA loans, as well as other Veteran benefits. You can apply for a COE online, but the process sometimes takes months. Authorized VA lenders such as Capital Bank, N.A. can obtain your form quickly so long as the VA has sufficient records about your service. If there is a delay, having a lender in your corner to help you obtain documentation is an advantage.

Using Your Certificate Of Eligibility

Many former service personnel use their VA certificate of eligibility to simply buy a home, but there are four types of VA loan packages available:

  1. Purchase Loan and Cash Out Refinance that enables you to buy or refinance a home for your own use. To qualify you must have your COE, sufficient income, a good credit score, and meet certain service requirements.
  2. Interest Rate Reduction Refinance Loan (IRRRL) or Streamline Refinance Loan that enables you to receive a lower interest rate by refinancing your current VA loan.
  3. Native American Direct Loan (NADL) Program that enables you to finance the purchase, construction or improvement of homes on federal trust land or reduce interest rates on a VA loan if you are a Native American.
  4. Adapted Housing Grants that enables Veterans who are permanently and totally disabled due to a service related injury to build, purchase, or modify a home adapted to meet their physical needs.

You will need a new COE for the Purchase Loan and Cash Out Refinance or the NADL, but when you apply for an Interest Rate Reduction Refinance Loan, you will not need a new form. To apply for an Adapted Housing Grant, you must complete VA Form 26-4555.

What You Qualify For With Your VA Certificate Of Eligibility

When you buy a home using your VA Certificate of Eligibility, you can borrow up to $424,100 in most areas, although the limits are higher in certain U.S. counties where the cost of living is higher. There is no limit on the price of the home you buy, but your VA loan will guarantee up to the loan limit. The actual amount of your loan will depend on your credit worthiness. Being eligible for a VA loan does not mean you will qualify with all lenders.

If you are disabled, you can apply for one of two types of adapted housing grants. The Specially Adapted Housing (SAH) grant which pays up to $64,960 in fiscal year 2013 for construction or modification of a new or existing home the Veteran wishes to buy. For existing homes, there is also the Special Housing Adaptation (SHA) grant to adapt the Veteran’s current home, which pays up to a total of $12,992 for up to three modifications.

Prequalifying For A VA Loan

To apply for most VA loans, you need your Certificate of Eligibility. With that in hand, you can prequalify for your loan quickly online with Capital Bank, N.A.. At this point, your income, your credit history, and other variables come under review as we determine if you are a qualified applicant and how much you can borrow.

What happens if you do not qualify due to credit problems? If you have a recent bankruptcy, delinquent payments, garnishments, too much debt, or other blemishes on your credit, you may not qualify for a VA loan at this time. When you work with Capital Bank, N.A., we will help you determine how to fix your credit.

We’re On Your Side

Capital Bank, N.A. is on your side. We want to help you become a homeowner! To get started, complete our online application form to determine your eligibility or call us at (866) 216-3577 for more information or to get a thorough answer to any questions you may have.