I'm a servicemember or veteran and I have a Certificate of Eligibility (COE) from the VA. Why do I have to apply and qualify at a bank if the VA has already certified me?
The VA loan guaranty provides a private lender with the assurance that if something goes wrong and you are unable to make the payments, the lender may go to the VA to cover its losses.
With your Certificate of Eligibility, you have evidence that the VA will “stand behind” your loan.
This VA guaranty is certainly considered by the lender, but VA loans are underwritten, closed, and serviced entirely by private lenders, not by the VA. Servicemembers and veterans have to go through the application process and provide information related to repayment ability, just like any other loan applicant. If you have additional questions or concerns, visit or call (877) 827-3702.