Today’s Mortgage Definition is: VA Loan Certificate of Eligibility
VA Loan Certificate of Eligibility — A Simple Definition:
The VA Loan Certificate of Eligibility is a key ingredient to getting a VA loan which is very popular with people who are Military Active Duty, Reservists, Veterans, and their immediate families. Simply put – if you can’t get a VA Certificate of Eligibility, you can’t get a VA loan.
VA Loan Certificate of Eligibility — An Expanded Definition:
There is a long list of potential people who could get a VA loan – but rather than break those out, I can offer a simple rule of thumb:
If you are in the military or have served in the military, or you are a spouse or a dependent of someone who was or is in the military you may be eligible for a VA loan and a Certificate of Eligibility.
You can visit the Dept of VA website to check military service requirements for VA loan eligibility.
From a more technical standpoint, the VA loan eligibility certificate is called Form 26-1880 and you can get it directly from any VA regional center, or you can get it online at the Veterans Information Portal.
Most VA lenders can also help you with getting your certificate if needed.
The certificate does not say that you are qualified for a VA loan, it simply means that you are eligible for a VA loan.
To qualify for a VA loan you will have to apply and qualify for it with a VA lender. It is during the application process where you will need to prove your eligibility for a VA loan with your certificate.
Lastly, the Certificate of Eligibility informs your VA lender what loan amount you are eligible to get which is based on your level of military service. In general, full eligibility without a down payment will get you up to a mortgage amount of $417,000. If you are eligible for the full amount and you don’t borrow all of the $417,000 in one mortgage, it is possible to get another mortgage on another property if you meet certain qualification requirements.
For more specific details on this, or other items relating to the VA Loan Certificate of Eligibility, you can speak to your loan officer.