Welcome to Project Valor, your trusted source for information on VA home loans. Today, we delve into the essentials of VA entitlement codes, crucial for veterans, active service members, and their families looking to utilize VA home loan benefits.
What is a VA Entitlement Code?
VA entitlement codes specify the period during which you performed the service that qualifies you for the VA home loan benefits. These codes essentially indicate your eligibility for the VA loan program.
Understanding Entitlement Codes
For example, VA entitlement code 10 signifies service during the Persian Gulf War, spanning from August 2, 1990, to the present. To be eligible under this code, you must have served for at least two years during this period or been on active duty for 90 days or more, provided you were not dishonorably discharged.
Different entitlement codes correspond to various service eras and statuses, including certain spouse entitlements. To qualify for a VA loan, you must provide a Certificate of Eligibility (COE), which verifies your entitlement and includes your specific VA entitlement code. You can obtain this COE directly from the VA or through your lender.
VA Entitlement Codes Overview
Your COE entitlement code (ranging from 01 to 11) identifies the era during which you earned your entitlement or another qualifying factor. Additionally, the VA has established minimum service requirements and other criteria for establishing entitlement.
Table 1: VA Entitlement Codes
Note: Some Veterans with a dishonorable discharge are not eligible for VA benefits.
Table 2: Era and Minimum Service Requirements
*Veterans who were discharged prior to meeting the minimum service requirement may still be eligible if released due to a service-connected disability.
Table 3: Other Eligibility Criteria
This table outlines some important exceptions, especially for spouses. For example, an “unremarried spouse of a Veteran who died while in service or from a service-connected disability” is eligible regardless of his or her late spouse’s time served. The spouse of a service member who’s been MIA or a POW for at least 90 days automatically gains entitlement.
Common VA Entitlement Codes
VA Entitlement Code 05
If you've previously used your VA loan entitlement but have since sold the home and repaid the loan, or if someone else assumed your old loan, your entitlement may be restored, represented by code 05.
VA Entitlement Code 09
This code applies to veterans who served in the Post-Vietnam era (5/8/1975 - 9/7/1980). Eligibility requires 181 days of service during this peacetime period.
VA Entitlement Code 10
For those who served in the Persian Gulf War (from 8/2/1990), code 10 is assigned. You must meet the general service requirements for VA loan eligibility.
VA Entitlement Code 11
Reservists who meet the minimum service requirements, typically six years in the Selected Reserves, receive entitlement code 11. Activation periods may reduce this requirement.
How to Obtain Your Certificate of Eligibility (COE)
To get started with a VA loan, you need a COE. Veterans can obtain this through the VA’s website using their DD214 form. Active service members need a statement of service from their unit's personnel office. Alternatively, your lender can help you obtain the COE. The latter (just call me) is the easiest and most time efficient way to accomplish this.
Basic vs. Bonus Entitlement
Your basic entitlement is $36,000, which secures up to $144,000 in loans. However, the VA now offers bonus entitlements, or second-tier entitlements, allowing eligible veterans to secure loans above this amount without down payment, especially useful in high-cost areas.
*Frequently Asked Questions*
What is a VA entitlement code?
A VA entitlement code indicates your period of service that qualifies you for a VA loan. For example, code 01 corresponds to World War II service.
How do you read VA entitlement?
Your COE shows your basic entitlement ($36,000) and possibly a bonus entitlement for high-cost counties, allowing for larger VA loan guarantees. Again, this is complicated, and sometimes the best way to understand it is to call us so we can walk you through the details and math...so the math be math'in.
What is VA entitlement code 10?
This code applies to those who served in the Persian Gulf War (post-8/2/1990) and met the service requirements.
What does VA entitlement code 05 mean?
This code signifies restored entitlement, allowing you to purchase another home with a VA loan (normally) after selling a previous home and repaying the loan. Multiple ways to attack this.
This is not meant to cover all the small nuances of the ins and outs of COE Entitlement Codes, but to give you a brief overview of how it works. There are things that go much deeper than this and can be more easily explained via a meeting or phone call. In the event you see something that doesn't look right, please call with questions. We're extremely happy to assist. We hope this guide helps you navigate the VA loan process. For more personalized assistance, feel free to contact us at Project Valor. Together, we can achieve your homeownership dreams with the benefits you’ve earned through your service. Thank you for taking the time to read our blog!