Thursday February 23, 2017
 
Determine your eligibility for a VA certificate

VA Certificate Of Eligibility

The Veterans Affair (VA) determines your eligibility and if you qualify for a Certificate it will be issued for you to use during the mortgage loan process.

Applications can involve one or more of the following:

  1. An original determination of eligibility for the home mortgage loan benefit.
  2. A request to replace a lost certificate of eligibility.
  3. A request for restoration of the benefit after payment in full of a previous VA home mortgage loan.
  4. Issuance of a certificate reflecting a current outstanding mortgage loan for refinance purposes.

What happens when I request a certificate of eligibility through my mortgage lender:

In many cases, your lender should be able to obtain your certificate for you by using ACE (Automated Certificate of Eligibility).  ACE is an internet based application that is able to determine eligibility and issues an online Certificate of Eligibility in a matter of seconds.

Occasionally ACE may have insufficient data in their records data base and when the certificate will have to be requested directly from the Veterans Affair.

Requesting a certificate from VA:

  1. Complete VA Form 26-1880 (PDF File), Request for a Certificate of Eligibility for VA Home Loan Benefits.
  2. Send the completed form 26-1880 and any supporting evidence(see 3 and 4 below) to

    VA Loan Eligibility Center
    PO Box 20729
    Winston-Salem, NC 27120

    For overnight delivery:

    VA Loan Eligibility Center
    251 N. Main Street
    Winston-Salem, NC 27155
     
    Under normal circumstances a response can be anticipated in roughly 10 days.  This time frame will vary during periods of heavy activity.
  3. Include photocopies of your most recent discharge or separation papers covering active military duty, which show active duty dates and type of discharge as certain VA eligibility guidelines that need to be followed .  If you served on regular active duty (not a reservist) and were discharged after 1975 or you have previously had a VA loan, it may not be necessary for you to provide documentation of your military service.  However, it is best to provide such evidence with your form 26-1880 if it is readily available so as to avoid possible delays in processing your request.
  4. If you are seeking restoration of your previously used benefit, you should include any evidence of payment in full of your prior loan (copy of HUD-1, settlement statement for example) that you have in your possession.  Normally VA receives notification that a loan has been paid, but this does not always happen.  VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan.
If you were discharged from regular active duty:

If you were separated after January 1, 1950, the appropriate documentation of your military service would be DD Form 214, Certificate of Release or Discharge from Active Duty.

If you were discharged after October 1, 1979, DD Form 214, copy 4 would be appropriate.  A photocopy of DD214 will suffice. Be sure to check the VA service requirements and VA eligibility FAQs.
Do not submit an original document.

If your service was in Selected Reserves:

You must provide documentation sufficient to establish that you served a minimum of 6 years with points earned for weekend drills or active duty for training and received an honorable discharge to receive your VA loan certificate of eligibility.

Since there is no uniform document similar to DD214 for proof of service in the Selected Reserve, a number of different forms may be accepted.

For those who served in the Army or Air National Guard and were discharged after at least 6 years of service, NGB Form 22 may be sufficient.

Those who served in the Army, Navy, Air Force, Marine Corps or Coast Guard Reserves may need to relay on a variety of forms. Often it will be necessary to submit a combination of documents such as an Honorable Discharge certificate together with a Retirement Points Statement.

If you remain on active duty:

If you are now on regular active duty and have not been previously discharged from active duty service, you must submit a statement of service which includes the name of the issuing authority (base or command), and is signed by or at the direction of an appropriate official to obatin a certificate.

The statement must identify you (SSN), and provide your date of entry on active duty. If you remain on active Selected Reserve duty, the statement of service should be from your unit CO and should cite the length of time you have served with the reserve unit.

Your Certificate of Eligibility will never expire

Comments   

 
# James E Broadus Sr 2013-06-13 07:49
Can I still use my certificate of eligibility
 
 
# Home Finance Blog 2014-02-20 19:33
For homeowners who are not severely underwater or for those owners who do not have significantly upside down mortgages these mortgage refinance
options may be the best way to go or at last try.
Secondly, thee borrower is required to pay a balloon payment
or total payoff if the loan is not satisfied.

It can also be paid for in notes, but which will tie up
funds that may be available for emergencies or other investments.
 

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