VA Home Loan Eligibility Isn’t a Guarantee

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There is a common misconception that because you are eligible and have received your Certificate of Eligibility from the Veterans Affairs that you automatically can use that golden ticket to purchase a home. Unfortunately this is half true, you still must meet the requirements of a lending institution. So what exactly is a Certificate of Eligibility and a VA Home Loan Guarantee?

A Certificate of Eligibility (COE), or Form 26-1880, proves to your lender that you, on behalf of the government, are qualified to receive the loan. Have met basic requirements which include:

  • Served 181 days during peacetime (Active Duty)
  • Served 90 days during war time (Active Duty)
  • Served 6 years in the Reserves or National Guard
  • Surviving spouse of a service member who was killed in the line of duty
  • Served at least one day and have received disability

There is a whole class of people who have received veteran status over the years, enabling them eligible to receive the VA Loan Guarantee. Some of these eligible persons are:

  • Public Health Service officials
  • Military service academy cadets
  • Some merchant seamen
  • National Oceanic and Atmospheric Administration officials
  • Scores of others, it is important that if you believe you are eligible, contact your nearest Veterans Affairs Representative (Federal and State).

So if the VA Home Loan Guarantee Certificate of Eligibility isn’t an automatic redeemable coupon then what is it? Veterans are not technically getting the loan from the Veterans Affairs. The VA is not a lending institution or services loans, they essentially guarantee and insure a portion of the loan that’s being issued by an approved lending institution. They guarantee that if the borrower defaults on the loan that they will step in and fund a portion of the lenders loss. To get a better understanding of the VA loan it is important to speak with a professional who is very knowledgeable of the VA loan process.

Clinton, MD Homes for Sale and Real Estate Service. Sherman Hardy is your local VA Home Loan Realtor for Washington, D.C., and surrounding areas. Sherman Hardy is also a US Military (Air Force) Veteran himself. You now have free access to Washington, DC Ultimate Real Estate Search Engine! Google or Call me Today and let’s discuss how I can help you. Sherman Hardy 301-659-5004


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