source:
  type: guide
  id: va-m26-7-ch02-t01
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 1 — How to Establish
    the Applicant's Eligibility for a VA Loan
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 1 — How to
    Establish the Applicant's Eligibility for a VA Loan.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch02-t01-full
  canonical_id: va-m26-7-ch02-t01-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 1 — How to Establish
    the Applicant's Eligibility for a VA Loan
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 1 — How to
      Establish the Applicant's Eligibility for a VA Loan
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 488cf6b152dfffb7
    fetched_at: '2026-05-23T01:53:52Z'
    content_hash: sha256:b9f2259ef4bf182c8700374d01f483bbad8bde952afea193cdbca84386d635e6
    paragraph_quote: '1. How to Establish the Applicant’s Eligibility for a VA Loan
      Change Date March 28, 2019 • This chapter has been revised in its entirety.
      a. What is Eligibility Eligibility means the Veteran meets the basic criteria
      of length of service (LOS) and character of service (COS) for the home loan
      benefit. Entitlement is the amount a Veteran has available for a guaranty on
      a loan. An eligible Veteran must still meet credit and income standards in order
      to qualify for a VA-guaranteed loan. b. The Lender’s Role The Certificate of
      Eligibility (COE) issued in WebLGY is the proof of eligibility for the lender.
      The lender must ensure the applicant is an eligible Veteran before an appraisal
      is ordered, the loan cannot be processed or closed. Lenders should never close
      a loan before they establish eligibility. VA cannot guarantee a loan for an
      ineligible Veteran. Once a COE is issued there may be conditions on the COE
      which must be met in order to receive a guaranty. The conditions that could
      appear on the COE are: • Active Duty Service Member (ADSM) - Valid unless discharged
      or released subsequent to date of this certificate. A certification of continuous
      active duty as of date of note is required. This COE is not valid if the ADSM
      was discharged after the date of the certificate. In this instance, a new COE
      must be obtained. • Funding Fee – Please fax a copy of VA Form 26-8937 to the
      Regional Loan Center (RLC) of Jurisdiction. Please have the lender contact the
      RLC for loan processing. • Funding Fee – Veteran is not exempt from funding
      fee due to non- service connected pension. Loan application will require prior
      approval processing by VA. • Reserve or National Guard Member – Valid unless
      discharged or released subsequent to the date of this certificate. A certification
      of continuous service in the Selected Reserve or National Guard as of the date
      of the note is required. Continued on next page VA Pamphlet 26-7, Revised Chapter
      2: Veteran’s Eligibility and Entitlement 2-3 1. How to Establish the Applicant’s
      Eligibility for a VA Loan, continued b. The Lender’s Role, continued • Reserve/National
      Guard Funding Fee – Entitlement is based on service in the Selected Reserve
      and/or National Guard so an increased funding fee is required. • Refinance Restoration
      – Restored entitlement previously used or charged for a VA Loan Indetification
      Number (LIN) as shown here is available only for use in connection with the
      property which secured that loan. • One-Time Restoration – Entitlement previously
      used for a VA LIN has been restored without disposal of the property, under
      provision of 38 U.S.C. 3702 (b)(4). Any future restoration requires disposal
      of all property obtained with a VA loan. • Subsequent Use Funding Fee – Entitlement
      code of “5” indicates previously used entitlement has been restored. The Veteran
      must pay a subsequent use funding fee on any future loan unless the Veteran
      is exempt. • Surviving Spouse – Eligibility of the surviving spouse and the
      validity of guaranty entitlement hereby evidenced will be null and void if any
      change in marital status occurs, subsequent to the date of this COE and prior
      to the date a loan to the widow or widower is closed, unless the lender making
      the loan was not aware of any change in marital status and obtained on the date
      the loan closed an affidavit from the surviving spouse in the form prescribed
      by the Secretary. • Prisoner of War/Missing in Action (POW/MIA) – This certificate
      evidences eligibility under 38 U.S.C 3701 (b)(3) of the individual named as
      the spouse of a Servicemember missing in action or prisoner of war. Any unused
      entitlement will terminate automatically upon the receipt of official notice
      that the Servicemember is no longer in a category specified in 38 U.S.C. 3701
      (b)(3) or upon dissolution of marriage. • Paid-in-Full Loan – Entitlement charged
      on a paid-in-full loan cannot be restored until the Veteran applies for restoration
      of entitlement. The lender shall submit the application electronically through
      VA’s Automated Certificate of Eligibility (ACE) online application. • Foreclosed
      Loan – Entitlement charged on a foreclosed loan cannot be restored until VA’s
      loss on the loan has been fully repaid. Information about repayment of the loss
      may be obtained by contacting an RLC. Continued on next page VA Pamphlet 26-7,
      Revised Chapter 2: Veteran’s Eligibility and Entitlement 2-4 1. How to Establish
      the Applicant’s Eligibility for a VA Loan, continued b. The Lenders Role, continued
      Although this chapter discusses some of the basic eligibility criteria, it is
      not intended to provide a lender with all the knowledge necessary to make an
      eligibility determination; consequently, all the various exceptions and nuances
      of eligibility are not included. Appendix 1-A at the end of this chapter provides
      a quick reference and overview of basic eligibility criteria. Lenders must use
      VA’s ACE online application to obtain the COE. Go to VA’s Information Portal
      (VIP) and select WebLGY from the applications toolbar; then select Eligibility
      and follow the prompts. In many cases, a COE can be generated in seconds. If
      not, lenders should select the link to submit an electronic application. This
      method allows lenders to upload supporting documentation and submit an application
      electronically to be processed by one of the RLCs. A Veteran can apply for a
      COE through eBenefits at http://www.ebenefits.va.gov or, if necessary, by completing
      VA Form 26- 1880, Request for a Certificate of Eligibility and mailing it to
      the listed RLC. Simultaneous applications may delay COE processing. To ensure
      quicker responses, it is preferable to apply online. c. IRRRL Eligibility Determination
      VA systems will not generate a VA case number for an Interest Rate Reduction
      Refinancing Loan (IRRRL) if there is no record of an active VA loan. This means
      if a lender successfully obtains a case number for an IRRRL, a COE is not required.
      VA Pamphlet 26-7, Revised Chapter 2: Veteran’s Eligibility and Entitlement 2-5'
  judgment: false
