## Chapter 2. Veterans' Eligibility and Entitlement

#### Overview

+------------+---------------------------------------------------------+
| #          | > This chapter contains the following topics.           |
| #### In th |                                                         |
| is Chapter |                                                         |
+------------+---------------------------------------------------------+

  ------------ -------------------------------------------------------- ------
  Topic        Topic Name                                               See
                                                                        Page

  1            How to Establish the Applicant's Eligibility for a VA    2-2
               Loan                                                     

  2            What the Certificate of Eligibility Tells the Lender     2-4

  3            How to Apply for a Certificate of Eligibility            2-8

  4            Proof of Service Requirements                            2-13

  5            Basic Eligibility Requirements                           2-16

  6            Restoration of Previously Used Entitlement               2-19

  7            Misuse of Veteran's Entitlement                          2-21

  8            Certificate of Veteran Status--FHA Loans                 2-22

  [9]{.mark}   [Exhibit 2-A Quick Reference Table for VA                2-24
               Eligibility]{.mark}                                      
  ------------ -------------------------------------------------------- ------

#### 1. How to Establish the Applicant's Eligibility for a VA Loan

+------------+---------------------------------------------------------+
| ##### C    | > September15, 2004, Change 4                           |
| hange Date |                                                         |
|            | -   This section has been changed to create subsection  |
|            |     lettering.                                          |
|            |                                                         |
|            | -   Subsection b has been changed to add a hyperlink to |
|            |     ACE.                                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Eligibility is the veteran's entitlement to VA home   |
| What is El | > loan benefits under the law, based on military        |
| igibility? | > service. An eligible veteran must still meet credit   |
|            | > and income standards in order to qualify for a        |
|            | > VA-guaranteed loan. A lender **cannot** make a        |
|            | > VA-guaranteed loan to an ineligible applicant under   |
|            | > any circumstances.                                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Before processing a loan for an applicant, the lender |
| b. The Len | > must ensure VA has determined the applicant is an     |
| der's Role | > eligible veteran. Each application must be evaluated  |
|            | > by VA to see if the applicant meets criteria          |
|            | > established by law.                                   |
|            | >                                                       |
|            | > It is critical that a potential borrower's            |
|            | > eligibility be established early in the loan process. |
|            | > This assures that a lender is working with an         |
|            | > eligible party. Delaying the application for          |
|            | > eligibility can create the following problems:        |
|            |                                                         |
|            | -   Time and money may have been expended needlessly,   |
|            |     if VA determines the veteran is not eligible.       |
|            |                                                         |
|            | -   The loan closing may be delayed pending a final     |
|            |     determination, if the veteran's eligibility         |
|            |     determination is more complex than normal.          |
|            |                                                         |
|            |     > Once VA finds an applicant eligible, VA issues    |
|            |     > the veteran either                                |
|            |                                                         |
|            | -   VA Form 26-8320, Certificate of Eligibility for     |
|            |     Loan Guaranty Benefits, or                          |
|            |                                                         |
|            | -   VA Form 26-8320a, Certificate of Eligibility for    |
|            |     Loan Guaranty Benefits (Reserves/National Guard).   |
|            |                                                         |
|            |     > **A Certificate of Eligibility is the *only*      |
|            |     > reliable Proof of Eligibility for the Lender**.   |
|            |                                                         |
|            |     > Once a Certificate of Eligibility (COE) is        |
|            |     > received                                          |
|            |                                                         |
|            | -   there is generally no need to have it updated       |
|            |     before loan closing, and                            |
|            |                                                         |
|            | -   contact VA if there is some question as to the      |
|            |     accuracy of data on the COE.                        |
+------------+---------------------------------------------------------+

Continued on next page

1\. How to Establish the Applicant's Eligibility for a VA Loan,
Continued

+------------+---------------------------------------------------------+
| b\. The    | > Although this chapter discusses some of the basic     |
| Lender's   | > eligibility criteria, it is **not** intended to       |
| Role       | > provide a lender with all the knowledge necessary to  |
| (          | > make an eligibility determination; consequently, all  |
| continued) | > the various exceptions and nuances of eligibility are |
|            | > not included. Exhibit 2-A at the end of this chapter  |
|            | > provides a quick reference and overview of basic      |
|            | > eligibility criteria.                                 |
|            |                                                         |
|            | > The final eligibility decision is always made by VA.  |
|            |                                                         |
|            | > In all cases in which the applicant does not already  |
|            | > have a COE, the applicant, the lender, or an          |
|            | > authorized representative acting on the applicant's   |
|            | > behalf, should submit a properly completed [VA Form   |
|            | > 26-1880, Request for a Certificate of                 |
|            | > Eli                                                   |
|            | gibility](http://www.vba.va.gov/pubs/forms/26-1880.pdf) |
|            | > to VA, even if it appears the applicant is **not**    |
|            | > eligible. Additionally, lenders should utilize the    |
|            | > Automated Certificate of Eligibility                  |
|            | >                                                       |
|            |  [([ACE](http://tas.vba.va.gov/tas/index.html))]{.mark} |
|            | > system (*See* [section 3 of this chapter]{.mark})     |
|            | > whenever possible.                                    |
|            |                                                         |
|            | > It is important to allow VA to make a formal          |
|            | > determination and, if the applicant is ineligible, to |
|            | > notify the applicant of his or her appeal rights.     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > VA has developed an alternate procedure for lenders   |
| c. Certifi | > to use when closing an Interest Rate Reduction        |
| cate of El | > Refinancing Loan (IRRRL). Lenders can access the      |
| igibility  | > automated system at:                                  |
| for IRRRLs | > <http://www.vba-roanoke.com/rlc/GILoans.asp>          |
|            | >                                                       |
|            | > This system provides an automated e-mail response to  |
|            | > lenders. Lenders MUST print this response and provide |
|            | > it with the guarantee package for issuance of the     |
|            | > Loan Guaranty Certificate.                            |
|            | >                                                       |
|            | > ***Note***: The printed response can ONLY be used in  |
|            | > lieu of a COE for IRRRLs.                             |
+------------+---------------------------------------------------------+

#### 2. What the Certificate of Eligibility Tells the Lender  {#what-the-certificate-of-eligibility-tells-the-lender .unnumbered}

+------------+---------------------------------------------------------+
| ##### C    | > September 15, 2004, Change 4                          |
| hange Date |                                                         |
|            | This section has been changed to create subsection      |
|            | lettering.                                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a. E | > The lender may rely on a Certificate of Eligibility   |
| ligibility | > (COE) as proof that a veteran is eligible for a VA    |
|  {#a.-elig | > home loan.                                            |
| ibility .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b. A | > The amount of available entitlement can be found at   |
| mount of E | > the center of the COE in the entitlement section. The |
| ntitlement | > maximum available entitlement that can be shown on    |
|  {#b.-amou | > the COE is \$36,000.                                  |
| nt-of-enti |                                                         |
| tlement .u | > Even though the veteran may use up to \$60,000 of     |
| nnumbered} | > entitlement for certain loans greater than \$144,000, |
|            | > the COE will never reflect the additional \$24,000 in |
|            | > the available entitlement amount shown. Instead, an   |
|            | > asterisk by the word "available" refers to a note     |
|            | > which explains the additional entitlement.            |
|            |                                                         |
|            | > **Amount of available entitlement is the most         |
|            | > important item on a COE to a Lender, because VA's     |
|            | > guaranty on the loan generally cannot exceed this     |
|            | > amount.**                                             |
|            |                                                         |
|            | > An exception is the additional \$24,000 entitlement   |
|            | > available on certain loans greater than \$144,000.    |
|            |                                                         |
|            | > If available entitlement shown is less than \$36,000, |
|            | > it is for one of two reasons                          |
|            |                                                         |
|            | -   the maximum entitlement has been changed by law     |
|            |     since VA issued the COE, or                         |
|            |                                                         |
|            | -   the veteran previously used entitlement that has    |
|            |     not been restored.                                  |
|            |                                                         |
|            |     > The last four changes in the law which impacted   |
|            |     > the maximum available entitlement were as         |
|            |     > follows:                                          |
+------------+---------------------------------------------------------+

Continued on next page

2\. What the Certificate of Eligibility Tells the Lender, Continued

+------------+---------------------------------------------------------+
| b\. Amount | > If the COE shows available entitlement equal to the   |
| of         | > maximum in effect on the date the COE was issued or   |
| E          | > last updated, there is no need to have the COE        |
| ntitlement | > updated to reflect the current maximum.               |
| (          |                                                         |
| continued) | > The lender can assume the veteran now has \$36,000    |
|            | > available.                                            |
|            |                                                         |
|            | > If, however, the veteran previously used entitlement  |
|            | > which has **not** been restored, available            |
|            | > entitlement is reduced by the amount used on the      |
|            | > prior loan(s). The lender has two options in this     |
|            | > situation:                                            |
|            |                                                         |
|            | -   Make the loan knowing that VA's guaranty is limited |
|            |     to the amount of available entitlement, or          |
|            |                                                         |
|            | -   Have the veteran apply for restoration of           |
|            |     previously used entitlement.                        |
|            |                                                         |
|            | > > ***Reference***: [Section 6 of this chapter]{.mark} |
|            | > > for an explanation of how to apply for restoration  |
|            | > > and under what circumstances it may be granted.     |
|            | >                                                       |
|            | > ***Note***: The additional entitlement of up to       |
|            | > \$24,000 may be used for certain loans above          |
|            | > \$144,000 even if the veteran has no entitlement or   |
|            | > partial entitlement. However, in such cases the lack  |
|            | > of full entitlement will likely result in lenders     |
|            | > receiving less than a 25 percent guaranty from VA. It |
|            | > is the lender's responsibility to ensure they are     |
|            | > able to sell their loan on the secondary market.      |
+------------+---------------------------------------------------------+

Continued on next page

2\. What the Certificate of Eligibility Tells the Lender, Continued

+------------+---------------------------------------------------------+
| ##### c.   | > Conditions that the lender and veteran must comply    |
|  Condition | > with are listed on the COE. Some COE forms list 5     |
| s Listed O | > conditions with a checkmark box in front of each      |
| n Some COE | > condition. VA places a checkmark by any that are      |
|  Forms {#c | > applicable.                                           |
| .-conditio |                                                         |
| ns-listed- | > The following table provides the actions a lender     |
| on-some-co | > should take for each condition, if applicable:        |
| e-forms .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

  ------------------------------------------------------------------------------------------------------------------------------------------------------------------ ---------------------------------------
  Condition                                                                                                                                                          What to Do

  Valid unless discharged or released subsequent to date of this certificate. A certification of continuous active duty as of the date of note is required.          Ensure the veteran is still on active
                                                                                                                                                                     duty before closing the loan. If the
                                                                                                                                                                     veteran is discharged or released prior
                                                                                                                                                                     to loan closing, request a new
                                                                                                                                                                     eligibility determination from VA.

  Excluded entitlement previously used for VA LIN \[number\] as shown herein is available only for use in connection with the property which secured that loan.      If the entitlement used for the prior
                                                                                                                                                                     loan identified in this condition is
                                                                                                                                                                     needed for the proposed loan, ensure
                                                                                                                                                                     the proposed loan will be secured by
                                                                                                                                                                     the same property as the prior loan.

  Entitlement has been used for manufactured home purposes. Remaining entitlement for additional manufactured home use is: \$ \[amount\].                            If the proposed loan involves a
                                                                                                                                                                     manufactured home, adhere to the
                                                                                                                                                                     entitlement limit indicated.

  Not eligible for any loan to purchase a manufactured home unit until veteran disposes of unit purchased with manufactured home loan number VA LIN \[number\].      If the proposed loan involves a
                                                                                                                                                                     manufactured home, ensure that the
                                                                                                                                                                     veteran has disposed of the unit
                                                                                                                                                                     indicated.

  Entitlement previously used for VA LIN \[number\] has been restored without disposal of the property, under provision of [38 U.S.C.                                This is information for the veteran.
  3702b(4).](http://www4.law.cornell.edu/cgi-bin/htm_hl?DB=uscode38&STEMMER=en&WORDS=titl+38+chapter+37+section+3702+&COLOUR=Red&STYLE=s&URL=/uscode/38/3702.html)   The lender need not be concerned if
  Any future restoration requires disposal of all property obtained with a VA loan.                                                                                  this condition is applicable, as long
                                                                                                                                                                     as the available entitlement shown on
                                                                                                                                                                     the COE is sufficient for the lender's
                                                                                                                                                                     purposes.
  ------------------------------------------------------------------------------------------------------------------------------------------------------------------ ---------------------------------------

Continued on next page

2\. What the Certificate of Eligibility Tells the Lender, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > Other system generated COE forms only display the     |
|  Other COE | > conditions which apply to the particular veteran.     |
|  Forms {#d |                                                         |
| .-other-co |                                                         |
| e-forms .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > Note: For COEs processed through                      |
| #### e. AC | > [ACE](http://tas.vba.va.gov/tas/index.html) please    |
| E (Automat | > *see* [section 3 of this chapter]{.mark}, How to      |
| ed Certifi | > Apply for a Certificate of Eligibility.               |
| cate of El |                                                         |
| igibility) |                                                         |
+------------+---------------------------------------------------------+

#### 3. How to Apply for a Certificate of Eligibility {#how-to-apply-for-a-certificate-of-eligibility .unnumbered}

+------------+---------------------------------------------------------+
| ##### C    | > September15, 2004, Change 4                           |
| hange Date |                                                         |
|            | -   This section has been changed to create subsection  |
|            |     lettering.                                          |
|            |                                                         |
|            | -   Subsection a has been changed to add a reference to |
|            |     ACE, correct the omission of Missouri from the      |
|            |     state listing and a comma after Rhode Island for    |
|            |     Eligibility Centers.                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > If the applicant does not already have a Certificate  |
| Procedures | > of Eligibility, [and the lender was unable to obtain  |
|            | > an [ACE](http://tas.vba.va.gov/tas/index.html)        |
|            | > generated COE, lenders]{.mark} may assist the veteran |
|            | > in following these procedures:                        |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | [VA Form 26-1880, Request for a Certificate of               |
|       | Eligibility](http://www.vba.va.gov/pubs/forms/26-1880.pdf),  |
|       | from the nearest VA Home Loan [Eligibility                   |
|       | Center](http://www.homeloans.va.gov/elig.htm), other VA      |
|       | office, or at                                                |
|       | <http://www.vba.va.gov/pubs/homeloanforms.htm>.              |
|       |                                                              |
|       | ***Reference***: See [Appendix                               |
|       | A](ht                                                        |
|       | tp://www.warms.vba.va.gov/admin26/pamphlet/pam26_7/appa.doc) |
|       | for a listing of VA offices.                                 |
+-------+--------------------------------------------------------------+
| 2     | Complete the form as thoroughly as possible.                 |
|       |                                                              |
|       | Failure to complete necessary items may cause delays.        |
+-------+--------------------------------------------------------------+
| 3     | Attach all required documentation to the form.               |
|       |                                                              |
|       | ***References***:                                            |
|       |                                                              |
|       | -   Part "D" of the instructions on the back of the form     |
|       |     describes the proof of military service needed.          |
|       |                                                              |
|       | -   See [section 4 of this chapter]{.mark} for further       |
|       |     details on the required proof of military service        |
|       |     including circumstances when it may not be necessary.    |
+-------+--------------------------------------------------------------+

Continued on next page

3\. How to Apply for a Certificate of Eligibility, Continued

  -----------------------------------------------------------------------
  a\. Procedures (continued)

  -----------------------------------------------------------------------

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 4     | Submit the form and attachments to the appropriate VA        |
|       | [Eligibility Center](http://www.homeloans.va.gov/elig.htm):  |
|       |                                                              |
|       | -   Los Angeles [Eligibility                                 |
|       |     Center](http://www.homeloans.va.gov/eligmap.htm), if you |
|       |     live in: Alaska, Arizona, Arkansas, California,          |
|       |     Colorado, Hawaii, Idaho, Illinois, Iowa, Kansas,         |
|       |     Louisiana, Minnesota, [Missouri]{.mark}, Montana,        |
|       |     Nebraska, Nevada, New Mexico, North Dakota, Oklahoma,    |
|       |     Oregon, South Dakota, Texas, Utah, Washington, Wisconsin |
|       |     or Wyoming.                                              |
|       |                                                              |
|       | -   Winston-Salem [Eligibility                               |
|       |     Center](http://www.homeloans.va.gov/eligmap.htm), if you |
|       |     live in Alabama, Connecticut, District of Columbia,      |
|       |     Delaware, Florida, Georgia, Indiana, Kentucky, Maine,    |
|       |     Maryland, Massachusetts, Michigan, Mississippi, New      |
|       |     Hampshire, New Jersey, New York, North Carolina, Ohio,   |
|       |     Pennsylvania, Puerto Rico, Rhode Island[,]{.mark} South  |
|       |     Carolina, Tennessee, Vermont, Virginia, or West          |
|       |     Virginia.                                                |
|       |                                                              |
|       |     > ***Reference***: See [Appendix                         |
|       |     > A](ht                                                  |
|       | tp://www.warms.vba.va.gov/admin26/pamphlet/pam26_7/appa.doc) |
|       |     > for the addresses of the [Eligibility                  |
|       |     > Centers](http://www.homeloans.va.gov/elig.htm).        |
+-------+--------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Certain unmarried spouses of veterans are eligible    |
| ### b. App | > for the VA home loan benefit (see [section 5 of this  |
| lication f | > chapter]{.mark}). If they are applying for the first  |
| or Unmarri | > time, they must complete [VA Form                     |
| ed Survivi | >                                                       |
| ng Spouses | 26-1817](http://www.vba.va.gov/pubs/forms/26-1817.pdf), |
|            | > Request for Determination of Loan Guaranty            |
|            | > Eligibility-Unmarried Surviving Spouses, instead of   |
|            | > [VA Form                                              |
|            | >                                                       |
|            | 26-1880](http://www.vba.va.gov/pubs/forms/26-1880.pdf). |
|            |                                                         |
|            | > They must complete [VA Form                           |
|            | >                                                       |
|            |  26-1817](http://www.vba.va.gov/pubs/forms/26-1817.pdf) |
|            | > and forward it to the appropriate VA [Eligibility     |
|            | > Center](http://www.homeloans.va.gov/elig.htm).        |
|            |                                                         |
|            | > ***Note***: Eligibility determinations for unmarried  |
|            | > surviving spouses may take considerably longer to     |
|            | > process than others.                                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > If the veteran's COE has been lost, stolen or         |
| ### c. Pre | > destroyed, the veteran must follow the "Procedures"   |
| viously Is | > described in this section to obtain a duplicate (that |
| sued COE i | > is, submit a completed request form with required     |
| s Missing  | > proof of military service).                           |
| {#c.-previ |                                                         |
| ously-issu |                                                         |
| ed-coe-is- |                                                         |
| missing .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

3\. How to Apply for a Certificate of Eligibility, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > Again, it is very important that the request for a    |
|  Processin | > COE be the first step in the loan process for a       |
| g Time {#d | > veteran who does **not** already have a COE.          |
| .-processi |                                                         |
| ng-time .u | > VA will make every effort to process requests for a   |
| nnumbered} | > COE in a timely manner.                               |
|            |                                                         |
|            | -   Most can be processed within 7 days of receipt.     |
|            |                                                         |
|            | -   Cases for which the applicant does not clearly meet |
|            |     the basic eligibility criteria will usually require |
|            |     additional development and longer processing time.  |
|            |                                                         |
|            | > ***Example***: A case involving an applicant who      |
|            | > received an "other than honorable" discharge may      |
|            | > require VA to request discharge records from the      |
|            | > appropriate service department.                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > [ACE](http://tas.vba.va.gov/tas/index.html) allows    |
| #### e. AC | > lenders to input data about a specific                |
| E (Automat | > veteran-borrower and obtain an eligibility            |
| ed Certifi | > determination on most cases in a matter of seconds    |
| cate of El | > from the Internet.                                    |
| igibility) |                                                         |
|            | > ACE eliminates completing [VA Form 26-1880, Request   |
|            | > for a Certificate of                                  |
|            | > Elig                                                  |
|            | ibility](http://www.vba.va.gov/pubs/forms/26-1880.pdf), |
|            | > mailing it to an [Eligibility                         |
|            | > Center](http://www.homeloans.va.gov/elig.htm) and     |
|            | > waiting for a reply by mail.                          |
+------------+---------------------------------------------------------+

+-----------+----------------------------------------------------------+
| ###       | > The ACE application is intended for use by lenders who |
| ## f. Sec | > have the veteran's permission to obtain an eligibility |
| urity Mon | > determination for them. The use of the system will be  |
| itoring { | > monitored for security and administrative purposes and |
| #f.-secur | > accessing the system constitutes consent to such       |
| ity-monit | > monitoring.                                            |
| oring .un |                                                          |
| numbered} |                                                          |
+-----------+----------------------------------------------------------+

Continued on next page

3\. How to Apply for a Certificate of Eligibility, Continued

+------------+---------------------------------------------------------+
| ###        | > If eligibility is established, the lender prints out  |
| ## g. Esta | > the certificate to submit with their guaranty         |
| blishing E | > package. If eligibility cannot be established, a      |
| ligibility | > refer message will instruct the lender to submit a    |
|            | > completed [VA Form                                    |
|            | >                                                       |
|            |  26-1880](http://www.vba.va.gov/pubs/forms/26-1880.pdf) |
|            | > to VA for processing.                                 |
+------------+---------------------------------------------------------+

[]{.mark}

  ------------------- -----------------------------------------------------------------------
  If...               ...Then...

  Eligibility is      The lender prints out the COE to be submitted with the guaranty
  established,        package.

  Eligibility is not  The lender has the veteran complete [VA Form
  established,        26-188](http://www.vba.va.gov/pubs/forms/26-1880.pdf)[0]{.underline}.
                      Once completed, the lender should send it and the veteran's proof of
                      service to the [Eligibility
                      Center](http://www.homeloans.va.gov/elig.htm) of jurisdiction.

  Eligibility is      The lender has the veteran complete [VA Form
  established but the 26-1880](http://www.vba.va.gov/pubs/forms/26-1880.pdf). Once completed,
  veteran has partial the lender should send it, the veteran's proof of service and evidence
  or no available     of a paid in full status for the previous loan to the [Eligibility
  entitlement,        Center](http://www.homeloans.va.gov/elig.htm) of jurisdiction.

  Eligibility is      The lender has the veteran complete [VA Form
  established but the 26-1880](http://www.vba.va.gov/pubs/forms/26-1880.pdf). Once completed,
  print out shows no  the lender should send it and the veteran's proof of service to the
  entitlement on a    [Eligibility Center](http://www.homeloans.va.gov/elig.htm) of
  loan that shows     jurisdiction for restoration of entitlement processing.
  paid-in-full        
  status,             
  ------------------- -----------------------------------------------------------------------

+------------+---------------------------------------------------------+
| ##### h. A | > At this time access to ACE is limited to VA           |
| ccess Limi | > recognized lenders with a valid VA assigned lender    |
| ts for ACE | > identification number [through the [VA loan guaranty  |
|            | > web                                                   |
|            | > portal](https://vip.vba.va.gov/vba_proxy/po           |
|            | rtal/userprofiling/login.jsp?_requestid=59394)]{.mark}. |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Lenders can access                                    |
| ### i. Acc | > [ACE](http://tas.vba.va.gov/tas/index.html) by using  |
| essing ACE | > [[http://tas.vba.va.gov/TAS/ind                       |
|            | ex.html]{.mark}](http://tas.vba.va.gov/TAS/index.html ) |
|            | > and clicking on the ACE link.                         |
|            | >                                                       |
|            | > Once the ACE link is accessed, lenders will see a     |
|            | > brief paragraph about ACE. There will be a link from  |
|            | > that paragraph to the actual ACE log-in page. Lenders |
|            | > may choose to bookmark that site. Once logged-in,     |
|            | > click on **Requestors** and select which function of  |
|            | > ACE to use.                                           |
|            | >                                                       |
|            | > ACE will generally be available 24 hours a day.       |
+------------+---------------------------------------------------------+

Continued on next page

3\. How to Apply for a Certificate of Eligibility, Continued

+------------+---------------------------------------------------------+
| #          | > ACE cannot make all determinations. Some types of     |
| #### j. Li | > cases that cannot be processed through ACE include:   |
| mitations  |                                                         |
|            | -   Persons whose service was or is in the              |
| ##         |     Reserves/National Guard                             |
| ### of ACE |                                                         |
|            | -   Persons who may have had prior VA loan(s) that went |
|            |     to foreclosure                                      |
|            |                                                         |
|            | -   Persons who did not serve the minimum required      |
|            |     length of service and were not discharged for an    |
|            |     authorized exception                                |
|            |                                                         |
|            | -   Persons who were discharged under conditions other  |
|            |     than honorable                                      |
|            |                                                         |
|            | -   Persons for which VA has insufficient data to make  |
|            |     the determination                                   |
|            |                                                         |
|            | -   Persons seeking restoration of previously used      |
|            |     entitlement                                         |
|            |                                                         |
|            | -   Unmarried surviving spouses                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > ACE generated COEs cannot be transferred to another   |
| ### k. Tra | > lender.                                               |
| nsfer of A | >                                                       |
| CE Generat | > Loan guaranty requests containing an ACE generated    |
| ed Certifi | > COE issued to someone other than the lender or [their |
| cates of E | > authorized]{.mark} agent will be returned.            |
| ligibility | >                                                       |
|            | > It's important that lenders submitting the loan for   |
|            | > guaranty properly complete agent information on [VA   |
|            | > Form                                                  |
|            | >                                                       |
|            | 26-1820](http://www.vba.va.gov/pubs/forms/26-1820.pdf), |
|            | > Report and Certification of Loan Disbursement, and    |
|            | > [VA Form                                              |
|            | >                                                       |
|            | 26-0286](http://www.vba.va.gov/pubs/forms/26-0286.pdf), |
|            | > VA Loan Summary Sheet. These documents will be        |
|            | > reviewed prior to the return of the loan package.     |
|            | >                                                       |
|            | > Lenders who intend to submit a package for guaranty   |
|            | > with an ACE generated COE obtained by a third party   |
|            | > who is not an agent, the lender, or an affiliate,     |
|            | > will then need to obtain an eligibility determination |
|            | > through ACE or conventional means before submitting   |
|            | > the package for guaranty.                             |
+------------+---------------------------------------------------------+

#### 4. Proof of Service Requirements {#proof-of-service-requirements .unnumbered}

+------------+---------------------------------------------------------+
| ##### C    | > September15, 2004, Change 4                           |
| hange Date |                                                         |
|            | -   This section has been changed to create subsection  |
|            |     lettering.                                          |
|            |                                                         |
|            | -   Subsection a has been changed to correct the page   |
|            |     number of the DD Form 214 that is needed for        |
|            |     processing of a Certificate of Eligibility.         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > DD Form 214, Certificate of Release or Discharge From |
| ### a. Dis | > Active Duty, will generally contain all the           |
| charged Ve | > information needed for VA to make an eligibility      |
| terans (Re | > determination for persons who served in a regular     |
| gular Mili | > component of the Armed Forces.                        |
| tary) {#a. |                                                         |
| -discharge | > VA will accept originals or legible copies of the DD  |
| d-veterans | > Form 214.                                             |
| -regular-m |                                                         |
| ilitary .u | > Persons separated from military service after January |
| nnumbered} | > 1, 1950 should have received DD Form 214. Persons     |
|            | > separated after October 1, 1979 should furnish        |
|            | > [Member]{.mark} 4 of DD Form 214 which includes       |
|            | > character of service and separation reason. Persons   |
|            | > separated from active duty before January 1, 1950     |
|            | > received documentation other than DD Form 214. To be  |
|            | > acceptable it should indicate:                        |
|            |                                                         |
|            | -   length of service, and                              |
|            |                                                         |
|            | -   character of service.                               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Veterans still on active duty must provide a current  |
| b. Veteran | > statement of service signed by, or by the direction   |
| s Still on | > of, the adjutant, personnel office, or commander of   |
|  Active Du | > the unit or higher headquarters they are attached to. |
| ty {#b.-ve | > There is no one form used uniformly by the military   |
| terans-sti | > for a statement of service. While statements of       |
| ll-on-acti | > service are typically on military letterhead, some    |
| ve-duty .u | > may be computer generated.                            |
| nnumbered} |                                                         |
|            | > The statement of service must clearly show            |
|            |                                                         |
|            | -   veteran's full name                                 |
|            |                                                         |
|            | -   Social Security Number (SSN)                        |
|            |                                                         |
|            | -   date of birth                                       |
|            |                                                         |
|            | -   the entry date on active duty                       |
|            |                                                         |
|            | -   the duration of lost time, if any, and              |
|            |                                                         |
|            | -   the name of the command providing the information.  |
+------------+---------------------------------------------------------+

Continued on next page

4\. Proof of Service Requirements, Continued

+------------+---------------------------------------------------------+
| #          | > There is no one form used by the Reserves or National |
| #### c. Di | > Guard which is similar to DD Form 214.                |
| scharged R | >                                                       |
| eserve/Gua | > Discharged members of the Army or Air National Guard  |
| rd Members | > may submit                                            |
|            | >                                                       |
|            | > NGB Form 22, Report of Separation and Record of       |
|            | > Service, or a points statement.                       |
|            | >                                                       |
|            | > Typically, all members of the Reserves and/or Guard   |
|            | > receive an annual retirement points summary which     |
|            | > indicates the level and length of participation. The  |
|            | > applicant should submit the latest such statement     |
|            | > received along with evidence of honorable service.    |
|            | >                                                       |
|            | > VA will accept originals or legible copies.           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d.   | > Individuals who are still members of the              |
|  Current R | > Reserves/Guard must provide a statement of service    |
| eserve/Gua | > signed by, or by the direction of, the adjutant,      |
| rd Members | > personnel office, or commander of the unit or higher  |
|            | > headquarters they are attached to. There is no one    |
|            | > form used uniformly by the military for a statement   |
|            | > of service. While statements of service are typically |
|            | > on military letterhead, some may be                   |
|            | > computer-generated.                                   |
|            |                                                         |
|            | > The statement of service must clearly show            |
|            |                                                         |
|            | -   veteran's full name                                 |
|            |                                                         |
|            | -   Social Security Number (SSN)                        |
|            |                                                         |
|            | -   entry date of applicant's Reserve/Guard duty, and   |
|            |                                                         |
|            | -   the name of the command providing the information.  |
|            |                                                         |
|            |     > ***Note***: The statement must clearly indicate   |
|            |     > that the applicant is an "active" reservist and   |
|            |     > not just in a control group (inactive status).    |
+------------+---------------------------------------------------------+

Continued on next page

4\. Proof of Service Requirements, Continued

+------------+---------------------------------------------------------+
| #####      | > There will be cases where an applicant discharged     |
| e. Assista | > from service is unable to provide his or her proof of |
| nce in Obt | > service. If the veteran has been discharged from      |
| aining Req | > regular active duty, submission of [VA Form           |
| uired Proo | >                                                       |
| f of Servi |  26-1880](http://www.vba.va.gov/pubs/forms/26-1880.pdf) |
| ce {#e.-as | > to the appropriate [Eligibility                       |
| sistance-i | > Center](http://www.homeloans.va.gov/elig.htm) should  |
| n-obtainin | > not be delayed while the veteran attempts to obtain   |
| g-required | > evidence of service since VA may be able to make a    |
| -proof-of- | > determination by referring to internal records.       |
| service .u | > Otherwise, discharged reservists and other discharged |
| nnumbered} | > vets for whom VA has no internal records should       |
|            | > obtain an [SF                                         |
|            | > 180](http://www.archives.gov/facilities/mo/st_lo      |
|            | uis/military_personnel_records/standard_form_180.html), |
|            | > Request Pertaining to Military Records from the       |
|            | > nearest [Eligibility                                  |
|            | > Center](http://www.homeloans.va.gov/elig.htm), other  |
|            | > VA Office, or at <http://www.archives.gov/>. An [SF   |
|            | > 180](http://www.archives.gov/facilities/mo/st_l       |
|            | ouis/military_personnel_records/standard_form_180.html) |
|            | > can be used by the veteran to request a copy of his   |
|            | > or her DD Form 214 or equivalent.                     |
+------------+---------------------------------------------------------+

#### 5. Basic Eligibility Requirements {#basic-eligibility-requirements .unnumbered}

+------------+---------------------------------------------------------+
| ##### C    | > September15, 2004, Change 4                           |
| hange Date |                                                         |
|            | -   This section has been changed to create subsection  |
|            |     lettering.                                          |
|            |                                                         |
|            | -   Subsection c has been changed to delete information |
|            |     pertaining to expiration of Reserve/Guard           |
|            |     eligibility based on the Veterans Benefits Act      |
|            |     of 2003. Additionally, "been honorably discharged"  |
|            |     was changed to "received an Honorable discharge."   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > A veteran is eligible for VA home loan benefits if he |
| # a. Gener | > or she served on active duty in the Army, Navy, Air   |
| al Rule fo | > Force, Marine Corps, or Coast Guard after September   |
| r Eligibil | > 15, 1940, and was discharged under conditions other   |
| ity {#a.-g | > than dishonorable after either                        |
| eneral-rul |                                                         |
| e-for-elig | -   90 days or more, any part of which occurred during  |
| ibility .u |     wartime, or                                         |
| nnumbered} |                                                         |
|            | -   181 continuous days or more (peacetime).            |
|            |                                                         |
|            |     > 2 Year Requirement: A greater length of service   |
|            |     > is required for veterans who                      |
|            |                                                         |
|            | -   enlisted (and service began) after September 7,     |
|            |     1980, or                                            |
|            |                                                         |
|            | -   entered service as an officer after October 16,     |
|            |     1981.                                               |
|            |                                                         |
|            |     > These veterans must have completed either         |
|            |                                                         |
|            | -   24 continuous months of active duty, or             |
|            |                                                         |
|            | -   the full period for which called or ordered to      |
|            |     active duty, but not less than 90 days (any part    |
|            |     during wartime) or 181 continuous days (peacetime). |
|            |                                                         |
|            | > ***Note***: Cases involving other than honorable      |
|            | > discharges will usually require further development   |
|            | > by VA. This is necessary to determine if the service  |
|            | > was under other than dishonorable conditions.         |
+------------+---------------------------------------------------------+

Continued on next page

5\. Basic Eligibility Requirements, Continued

+------------+---+----------------------------+---------------------------+---+
| ##### b. W | > |                            |                           |   |
| artime and |   |                            |                           |   |
|  Peacetime | W |                            |                           |   |
|            | a |                            |                           |   |
|            | r |                            |                           |   |
|            | t |                            |                           |   |
|            | i |                            |                           |   |
|            | m |                            |                           |   |
|            | e |                            |                           |   |
|            | > |                            |                           |   |
|            |   |                            |                           |   |
|            | a |                            |                           |   |
|            | n |                            |                           |   |
|            | d |                            |                           |   |
|            | > |                            |                           |   |
|            |   |                            |                           |   |
|            | p |                            |                           |   |
|            | e |                            |                           |   |
|            | a |                            |                           |   |
|            | c |                            |                           |   |
|            | e |                            |                           |   |
|            | t |                            |                           |   |
|            | i |                            |                           |   |
|            | m |                            |                           |   |
|            | e |                            |                           |   |
|            | > |                            |                           |   |
|            |   |                            |                           |   |
|            | r |                            |                           |   |
|            | e |                            |                           |   |
|            | f |                            |                           |   |
|            | e |                            |                           |   |
|            | r |                            |                           |   |
|            | > |                            |                           |   |
|            |   |                            |                           |   |
|            | t |                            |                           |   |
|            | o |                            |                           |   |
|            | > |                            |                           |   |
|            |   |                            |                           |   |
|            | t |                            |                           |   |
|            | h |                            |                           |   |
|            | e |                            |                           |   |
|            | > |                            |                           |   |
|            |   |                            |                           |   |
|            | f |                            |                           |   |
|            | o |                            |                           |   |
|            | l |                            |                           |   |
|            | l |                            |                           |   |
|            | o |                            |                           |   |
|            | w |                            |                           |   |
|            | i |                            |                           |   |
|            | n |                            |                           |   |
|            | g |                            |                           |   |
|            | > |                            |                           |   |
|            |   |                            |                           |   |
|            | p |                            |                           |   |
|            | e |                            |                           |   |
|            | r |                            |                           |   |
|            | i |                            |                           |   |
|            | o |                            |                           |   |
|            | d |                            |                           |   |
|            | s |                            |                           |   |
|            | > |                            |                           |   |
|            |   |                            |                           |   |
|            | o |                            |                           |   |
|            | f |                            |                           |   |
|            | > |                            |                           |   |
|            |   |                            |                           |   |
|            | s |                            |                           |   |
|            | e |                            |                           |   |
|            | r |                            |                           |   |
|            | v |                            |                           |   |
|            | i |                            |                           |   |
|            | c |                            |                           |   |
|            | e |                            |                           |   |
|            | : |                            |                           |   |
+------------+---+----------------------------+---------------------------+---+
|            |   | Wartime                    | Peacetime                 |   |
+------------+---+----------------------------+---------------------------+---+
|            |   | World War II               | Post World War II period  |   |
|            |   |                            |                           |   |
|            |   | 9/16/40---7/25/47          | 7/26/47---6/26/50         |   |
+------------+---+----------------------------+---------------------------+---+
|            |   | Korean conflict            | Post Korean period        |   |
|            |   |                            |                           |   |
|            |   | 6/27/50---1/31/55          | 2/1/55---8/4/64           |   |
+------------+---+----------------------------+---------------------------+---+
|            |   | Vietnam Era                | Post Vietnam period       |   |
|            |   |                            |                           |   |
|            |   | 8/5/64---5/7/75            | 5/8/75---8/1/90           |   |
|            |   |                            |                           |   |
|            |   | (The Vietnam Era begins    |                           |   |
|            |   | 2/28/61 for those          |                           |   |
|            |   | individuals who served in  |                           |   |
|            |   | the Republic of Vietnam.)  |                           |   |
+------------+---+----------------------------+---------------------------+---+
|            |   | Persian Gulf War           |                           |   |
|            |   |                            |                           |   |
|            |   | 8/2/90---date to be        |                           |   |
|            |   | determined                 |                           |   |
+------------+---+----------------------------+---------------------------+---+

+------------+---------------------------------------------------------+
| #####      | > Members of the Reserves and National Guard who are    |
| c. Eligibi | > not otherwise eligible for loan guaranty benefits are |
| lity for R | > eligible upon completion of 6 years service in the    |
| eserves an | > Reserves or Guard. The applicant must have [received  |
| d/or Guard | > an Honorable discharge]{.mark} from such service      |
|            | > unless he or she is either                            |
|            |                                                         |
|            | -   in an inactive status awaiting final discharge, or  |
|            |                                                         |
|            | -   still serving in the Reserves or Guard.             |
|            |                                                         |
|            |     [\[ \]]{.mark}                                      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Some spouses of veterans may have home loan           |
| d. Eligibi | > eligibility. They are                                 |
| lity of Sp |                                                         |
| ouses of V | -   the unmarried surviving spouse of a veteran who     |
| eterans {# |     died as a result of service or service-connected    |
| d.-eligibi |     causes, and                                         |
| lity-of-sp |                                                         |
| ouses-of-v | -   the spouse of an active duty member who is listed   |
| eterans .u |     as missing in action (MIA) or a prisoner of war     |
| nnumbered} |     (POW) for at least 90 days. Eligibility under this  |
|            |     MIA/POW provision is limited to one time use only.  |
+------------+---------------------------------------------------------+

Continued on next page

5\. Basic Eligibility Requirements, Continued

+------------+---------------------------------------------------------+
| #####      | > Congress has periodically granted veteran status to   |
| e. Other Q | > groups other than members of the Army, Navy, Marine   |
| ualifying  | > Corps, and Coast Guard, such as certain members of    |
| Service {# | > the Public Health Service, cadets at the service      |
| e.-other-q | > academies, certain merchant seaman, etc.              |
| ualifying- |                                                         |
| service .u | > Lenders should contact the appropriate VA             |
| nnumbered} | > [Eligibility                                          |
|            | > Center](http://www.homeloans.va.gov/elig.htm) for     |
|            | > assistance when one of these unique cases is          |
|            | > encountered.                                          |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > There are numerous exceptions to the length of        |
| f. Excepti | > service requirements outlined in this section. For    |
| ons to Len | > example, one day of service is sufficient for an      |
| gth of Ser | > individual who is discharged or released from service |
| vice Requi | > (regular or Reserve/Guard) due to a service-connected |
| rements {# | > disability.                                           |
| f.-excepti |                                                         |
| ons-to-len | > Because of the complexity and number of exceptions,   |
| gth-of-ser | > this chapter does **not** attempt to cover all of     |
| vice-requi | > them. The exceptions provide another reason to submit |
| rements .u | > a formal eligibility application to VA in all cases,  |
| nnumbered} | > even if it appears the applicant is not eligible.     |
+------------+---------------------------------------------------------+

#### 6. Restoration of Previously Used Entitlement {#restoration-of-previously-used-entitlement .unnumbered}

+------------+---------------------------------------------------------+
| ##### C    | > September 15, 2004, Change 4                          |
| hange Date |                                                         |
|            | This section has been changed to create subsection      |
|            | lettering.                                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Entitlement previously used in connection with a VA   |
| ### a. Bas | > home loan may be restored under certain               |
| ic Restora | > circumstances. Once restored it can be used again for |
| tion {#a.- | > another VA loan. Restoration of previously used       |
| basic-rest | > entitlement is possible if                            |
| oration .u |                                                         |
| nnumbered} | -   the property which secured the VA guaranteed loan   |
|            |     has been sold, **and** the loan has been paid in    |
|            |     full, or                                            |
|            |                                                         |
|            | -   an eligible veteran-transferee has agreed to assume |
|            |     the outstanding balance on a VA loan and substitute |
|            |     his or her entitlement for the same amount          |
|            |     originally used on the loan. The assuming veteran   |
|            |     must also meet occupancy, income and credit         |
|            |     requirements of the law.                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > In addition to the basic restoration criteria         |
|  Special R | > outlined above, a veteran may obtain restoration of   |
| estoration | > the entitlement used on a prior VA loan under any of  |
|  Cases {#b | > the following circumstances:                          |
| .-special- |                                                         |
| restoratio | -   the prior VA loan has been paid in full and the     |
| n-cases .u |     veteran has made application for a loan to be       |
| nnumbered} |     secured by the same property which secured the      |
|            |     prior VA loan, ***Note***: This includes            |
|            |     refinancing situations in which the prior loan will |
|            |     be paid off at closing from a VA refinancing loan   |
|            |     on the same property, **OR**                        |
|            |                                                         |
|            | -   the prior VA loan has been paid in full, but the    |
|            |     veteran has not disposed of the property securing   |
|            |     the loan. The veteran may obtain restoration of the |
|            |     entitlement used on the prior loan in order to      |
|            |     purchase a different property, *one time only*.     |
|            |     Once such restoration is effected, the veteran's    |
|            |     Certificate of Eligibility will indicate the one    |
|            |     time restoration. It will also advise that any      |
|            |     future restoration will require disposal of all     |
|            |     property obtained with a VA loan.                   |
+------------+---------------------------------------------------------+

Continued on next page

6\. Restoration of Previously Used Entitlement, Continued

+------------+---------------------------------------------------------+
| ####       | > The veteran must complete and send [VA Form           |
| # c. How t | >                                                       |
| o Apply fo | 26-1880](http://www.vba.va.gov/pubs/forms/26-1880.pdf), |
| r Restorat | > Request for a Certificate of Eligibility, to the      |
| ion {#c.-h | > appropriate [Eligibility                              |
| ow-to-appl | > Center](http://www.homeloans.va.gov/elig.htm). If the |
| y-for-rest | > veteran has evidence of payment if full of any prior  |
| oration .u | > loans (HUD-1, settlement statement, etc), a copy      |
| nnumbered} | > should be included. Additionally, any previously      |
|            | > issued COEs should be included.                       |
|            |                                                         |
|            | > If the veteran is applying for restoration in order   |
|            | > to obtain another VA loan on the same property (as    |
|            | > described above in "Special Restoration Cases"), the  |
|            | > veteran should include a copy of the loan application |
|            | > submitted to the lender along with [VA Form           |
|            | >                                                       |
|            | 26-1880](http://www.vba.va.gov/pubs/forms/26-1880.pdf). |
|            | > Unmarried surviving spouses applying for restoration  |
|            | > of entitlement also need to complete [VA Form         |
|            | >                                                       |
|            |  26-1880](http://www.vba.va.gov/pubs/forms/26-1880.pdf) |
|            | > supplying the deceased veterans military service data |
|            | > and VA claims file number.                            |
+------------+---------------------------------------------------------+

#### 7. Misuse of Veteran's Entitlement {#misuse-of-veterans-entitlement .unnumbered}

+------------+---------------------------------------------------------+
| ##### C    | > September15, 2004, Change 4                           |
| hange Date |                                                         |
|            | This section has been changed to create subsection      |
|            | lettering.                                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > A basic requirement of the law governing the VA home  |
|  a. What C | > loan program is that the veteran has a bona fide      |
| onstitutes | > intention of occupying his or her property as a home. |
|  Misuse? { | > Home loan entitlement is **not** being used properly  |
| #a.-what-c | > if the veteran arranges to sell or convey the         |
| onstitutes | > property to a third party prior to closing the loan.  |
| -misuse .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > Contact the VA Regional Loan Center with jurisdiction |
|  What to D | > over the loan for advice regarding any case in which  |
| o {#b.-wha | > there may be a question regarding the legality of     |
| t-to-do .u | > entitlement use.                                      |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

#### 8. Certificate of Veteran Status - FHA Loans {#certificate-of-veteran-status---fha-loans .unnumbered}

+------------+---------------------------------------------------------+
| ##### C    | > September 15, 2004, Change 4                          |
| hange Date |                                                         |
|            | This section has been changed to create subsection      |
|            | lettering.                                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Section 203(b)(2) of the National Housing Act permits |
| ### a. Gen | > a veteran to obtain slightly better terms than a      |
| eral {#a.- | > non-veteran when obtaining Federal Housing            |
| general .u | > Administration (FHA) mortgage financing. Although     |
| nnumbered} | > this involves FHA loans, VA is charged with making    |
|            | > the entitlement determination for benefits under this |
|            | > provision. VA will issue a Certificate of Veteran     |
|            | > Status, [VA Form                                      |
|            | > 2                                                     |
|            | 6-8261](http://www.vba.va.gov/pubs/forms/26-8261a.pdf), |
|            | > to any eligible veteran-applicant to use when         |
|            | > obtaining an FHA loan.                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > The lender may assist the veteran in following these  |
| #### b. Ho | > procedures:                                           |
| w to Apply |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Obtain [VA Form                                              |
|       | 26-8261a](http://www.vba.va.gov/pubs/forms/26-8261a.pdf),    |
|       | Request for Certificate of Veteran Status, from the nearest  |
|       | VA [Eligibility                                              |
|       | Center](http://www.homeloans.va.gov/elig.htm).               |
|       |                                                              |
|       | > ***Reference***: See [Appendix                             |
|       | > A](ht                                                      |
|       | tp://www.warms.vba.va.gov/admin26/pamphlet/pam26_7/appa.doc) |
|       | > for a listing of VA offices.                               |
+-------+--------------------------------------------------------------+
| 2     | Complete the form as thoroughly as possible.                 |
|       |                                                              |
|       | Failure to complete necessary items may cause delays.        |
+-------+--------------------------------------------------------------+
| 3     | Attach proof of military service to the form.                |
|       |                                                              |
|       | ***Reference***: See [section 4 of this chapter]{.mark} for  |
|       | further details on the required proof of military service.   |
+-------+--------------------------------------------------------------+
| 4     | Submit the form and attachments to the appropriate VA        |
|       | [Eligibility Center.](http://www.homeloans.va.gov/elig.htm)  |
+-------+--------------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Additionally, veterans who apply for VA benefits on   |
| c. Veteran | > [VA Form                                              |
|  Found Ine | >                                                       |
| ligible {# |  26-1880](http://www.vba.va.gov/pubs/forms/26-1880.pdf) |
| c.-veteran | > and are found ineligible, may be found eligible for   |
| -found-ine | > the FHA program. If so, they will be issued an FHA    |
| ligible .u | > Certificate of Veteran Status concurrent with VA's    |
| nnumbered} | > notice of denial of eligibility for the VA program.   |
+------------+---------------------------------------------------------+

Continued on next page

8\. Certificate of Veteran Status - FHA Loans, Continued

+------------+---------------------------------------------------------+
| #####      | > Generally, eligibility may be established through     |
| d. Qualifi |                                                         |
| cations {# | -   active duty in the Armed Forces                     |
| d.-qualifi |                                                         |
| cations .u | -   active duty for training in a reserve component of  |
| nnumbered} |     the Armed Forces, or                                |
|            |                                                         |
|            | -   active duty or active duty for training in the      |
|            |     National Guard or Air National Guard.               |
|            |                                                         |
|            |     > The length of service requirements are similar to |
|            |     > the requirements for a VA Certificate of          |
|            |     > Eligibility.                                      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### e. B | > One important distinction between VA and FHA          |
| reak in Se | > eligibility requirements is                           |
| rvice {#e. |                                                         |
| -break-in- | > For an FHA Certificate of Veteran Status, a veteran   |
| service .u | > must have been discharged or released under           |
| nnumbered} | > conditions other than dishonorable.                   |
|            |                                                         |
|            | -   A VA Certificate of Eligibility can be issued to a  |
|            |     veteran still on active duty.                       |
|            |                                                         |
|            | -   An FHA Certificate of Veteran Status cannot be      |
|            |     issued to a person who is still serving on active   |
|            |     duty and has had no break in service.               |
+------------+---------------------------------------------------------+

#### 9. Exhibit 2-A: Quick Reference Table for VA Eligibility

+------------+---------------------------------------------------------+
| ##### C    | > September 15, 2004, Change 4                          |
| hange Date |                                                         |
|            | This section has been changed to create subsection      |
|            | lettering.                                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a. Q | > The table below provides a quick reference to some    |
| uick Refer | > the most commonly eligible veterans. This table is    |
| ence Table | > NOT exhaustive. A Veteran's eligibility for home loan |
|            | > benefits may only be determined by VA.                |
+------------+---------------------------------------------------------+

+--------------+---------------------------+---------------------------+
| ERA          | Dates                     | Time Required             |
+--------------+---------------------------+---------------------------+
| WW II        | 9/16/40---7/25/47         | 90 days                   |
+--------------+---------------------------+---------------------------+
| Post WW II   | 7/26/47---6/26/50         | 181 days                  |
+--------------+---------------------------+---------------------------+
| Korean       | 6/27/50---1/31/55         | 90 days                   |
+--------------+---------------------------+---------------------------+
| Post Korean  | 2/1/55---8/4/64           | 181 days                  |
+--------------+---------------------------+---------------------------+
| Vietnam      | 8/5/64---5/7/75           | 90 days                   |
|              |                           |                           |
|              | ***Note***: The Vietnam   |                           |
|              | Era began 2/28/61 for     |                           |
|              | those individuals who     |                           |
|              | served in the Republic of |                           |
|              | Vietnam.                  |                           |
+--------------+---------------------------+---------------------------+
| Post Vietnam | 5/8/75---9/7/80           | enlisted---181 days       |
|              |                           |                           |
|              | 5/8/75---10/16/81         | officers---181 days       |
|              |                           |                           |
|              | 9/8/80---8/1/90           | enlisted---2 years\*\*    |
|              |                           |                           |
|              | 10/17/81---8/1/90         | officers---2 years\*\*    |
+--------------+---------------------------+---------------------------+
| Persian Gulf | 8/2/90---present          | 2 years                   |
|              |                           |                           |
|              |                           | **\*\**Note***: The       |
|              |                           | veteran must have served  |
|              |                           | 2 years or the full       |
|              |                           | period which called or    |
|              |                           | ordered to active duty    |
|              |                           | (at least 90 days during  |
|              |                           | wartime and 181 during    |
|              |                           | peacetime).               |
+--------------+---------------------------+---------------------------+

+---------------------------------+------------------------------------+
| Other Eligible Persons          | Time Required                      |
+---------------------------------+------------------------------------+
| Active Duty Member              | 90 days (181 during peacetime)     |
|                                 |                                    |
| ***Note***: Certificate valid   |                                    |
| only while veteran remains on   |                                    |
| active duty.                    |                                    |
+---------------------------------+------------------------------------+
| Reserves/Guard                  | 6 years in Selected Reserves.      |
+---------------------------------+------------------------------------+
| Unmarried Surviving Spouses     | No time requirement. Veteran must  |
|                                 | have died on active duty or from a |
|                                 | service-connected disability.      |
+---------------------------------+------------------------------------+
| POW/MIA Spouses                 | Veteran must have been POW or MIA  |
|                                 | 90 days.                           |
+---------------------------------+------------------------------------+