Written by Isaac F. Davis

 

 

VA Loans require a Certificate of Eligibility (COE) from the borrower.  The process to obtain a COE is not difficult and should never deter someone from forging ahead with the VA loan process. Most COEs can be obtained through a VA-approved lender in a matter of minutes using Automated Certificates of Eligibility, otherwise known as ACE. The ACE online system is used by lenders in order to assist potential VA Home Loan borrowers.  ACE can expedite the COE process. 

 

The borrower must provide name and social security number.  Lenders and mortgage brokers simply enter these two bits of required information into the ACE system and the rest is automatic.  No paperwork is necessary, and there is no waiting for mail processing.  As long as the borrower’s name and number are in the system, the
COE can be obtained.   

 

Typically, the ACE online system will provide instant COEs as long as the borrower is:

 

·    A first-time VA Home Loan user

·    Honorably discharged after 1980

·    At least 2 years on active duty

 

Certificates obtained through the ACE system can be printed instantly on regular white paper. Each COE obtained online through ACE is distinguished by a special authorization number that cannot be duplicated. 

 

Of all the COEs issued nationwide, 98% of them are obtained through ACE.  The VA is currently improving the ACE system to allow for lenders to code restorations of entitlement.  This would allow for lenders to obtain COEs for subsequent users in addition to first-time VA loan users. 

 

Although the ACE system is a very useful and efficient tool for lenders and mortgage brokers for obtaining a COE for VA-eligible borrowers, it does not work for everyone.  The ACE system cannot certify entitlements for:

 

·    Reserves/National Guard

·    Those with previous VA Loan foreclosure(s)

·    Military persons with insufficient service time/discharge types

·    Surviving spouses

 

If the ACE system is unable to certify someone, it doesn’t mean he or she should give up on pursuing a VA Loan.  It simply means the borrower is not in the ACE system.  Those who are eligible for VA mortgages include honorably discharged veterans and active duty personnel who have served:

 

·    2 years on active duty, or

·    6 years in the Reserve/National Guard, or

·    90 days of wartime duty called up under U.S.C. Title 10, or

·    181 days of peacetime duty called up under U.S.C. Title 10

 

Additionally, there are some other people who might be eligible for the VA loan entitlement including:

 

·    POWs held in captivity for 90 days or more

·    Certain surviving spouses who have not remarried

 

Obtaining a COE should not be intimidating.  And, the process shouldn’t stop anyone who is eligible from getting a VA loan.  With the ACE online system a COE can be obtain quickly and easily in most cases. Contact a Loan Specialist today to get your COE through the ACE online system.