Understanding VA Documents

VA Form 26-1880 is used to help potential VA borrowers obtain a Certificate of Eligibility (COE). A COE document is necessary for all VA borrowers in order to show eligibility for VA home loan benefits.

The VA has an online database that lenders can use to obtain a COE instantly for military members in the system. If the COE is not available through the VA’s online database, then VA Form 26-1880 must be used (surviving spouses must use VA Form 26-1817).

The VA has an interface called Web LGY that military members can use to electronically complete and submit VA Form 26-1880. By submitting the form electronically, the serviceperson can save a few days of mail time getting the form to the Winston-Salem Office of Eligibility.

For those who prefer to fill out VA Form 26-1880 by hand, blank forms can be downloaded in PDF format at http://www.vba.va.gov/pubs/forms/VBA-26-1880-ARE.pdf . Also, most VA-approved lenders can provide potential borrowers with a blank VA form 26-1880.

Whether filling it out online or by hand, the VA Form 26-1880 is easy to complete with a little understanding of what’s being asked. The basic information VA borrowers will need to provide on the form includes:

1. Name
2. Date of Birth
3. Daytime Telephone
4. Address and Email
5. Mailing Address (if different that address)
6. Military Service Records
7. Disability Compensation Records (if applicable)
8. Past VA Loan Usage
9. Signature
10. Date

Name, date of birth, daytime telephone, address, email and mailing address are all required fields on the VA Form 26-1880. The name entered on the form must match military registration records. Be sure to provide a phone number with which the VA office of eligibility can reach the applicant during business hours. The address provided must include the number and street name (or rural route) or P.O. box number, city, state and zip. An email address is only necessary if the applicant uses one. Daytime phone and email may be used by the Office if there are ambiguities on the completed form.

The VA will take about two weeks to process VA Form 26-1880, and COE documents will be delivered to the mailing address indicated on the form.

Another important piece of information requested on VA Form 26-1880 is a history of military service. Military service information helps the VA determine specifics about VA loan eligibility and must be recorded on the table provided. Each separate period of active duty service, including name and durations, must match military records. The VA also asks for proof of military service, which can include a copy of form DD214 discharge papers for veterans or statement of service from personnel office. A service number is not needed if the military member served under his or her social security number. Information on military branch of service and whether the service included the Reserves should be indicated here.

Information about service-connected disabilities needs to be divulged on VA Form 26-1880. This information gives VA-approved lenders the thumbs-up to waive the VA funding fee for certain VA borrowers with service-connected disabilities.

Maybe one of the most important parts of VA Form 26-1880 is the one having to do with past VA loan usage. If the applicant has used the VA home loan program before, then the information submitted here will help the VA determine whether entitlement has been restored.

Completed, signed and dated VA 26-1880 forms can be sent to:

Department of Veterans Affairs

EligibilityCenter

P.O. Box 20729

Winston-Salem, NC27120

VA lenders often require potential borrowers to fill out IRS Form 4506-T, Request for Transcript of Tax Return. The Form authorizes lenders to view a potential VA borrower’s tax return transcript, which can be helpful in the underwriting process.

An IRS tax return transcript can be a window into the borrower’s relationship with the IRS. Some of the information on the transcript may not be revealed to the lender on a standard VA loan application. An IRS tax return transcript is a useful tool lenders may use to determine a borrower’s ability to repay a VA-backed mortgage. Things like IRS payment status, penalties, assessments and adjustments after the tax return was filed, may all be contained in the IRS tax return transcript. With this knowledge, VA-approved lenders can tell whether a potential borrower is in good standing with the IRS.

A completed IRS Form 4506-T will give VA-approved lenders access to a potential borrower’s personal or business tax return transcripts for the current year and up to three prior years. IRS forms such as a W-2, 1099, 1098, and a 5498 which may have accompanied a tax return may also be viewed by the lender once a borrower signs and submits a completed IRA Form 4506-T.  Finally, an IRS tax return transcript can also let a lender know when the borrower did not file a tax return. 

Anyone filling out IRS Form 4506-T should know what is being requested, which includes the following:

• Name(s) used on the tax return
• Social security number(s) 
• Current name and address
• Address used for the last return
• Name, address and phone number of third party (like a VA-approved lender) authorized to receive transcripts
• Tax products checklist
• Tax-filing year of transcript being requested
• Signature of taxpayer and/or spouse (if joint), or authorized corporate party
• Today’s Date

Much of the information requested on IRS Form 4506-T needs no explanation.  And, many borrowers are able to fill out the Form simply by following the instructions. 

However, the tax documents checklist could use some additional details.  This section may be confusing as to which boxes to check.  Most VA borrowers are advised to check all boxes in this section of the Form.  By doing so, they give VA-approved lenders authority to view their IRS status of payments, penalties, assessments and adjustments for the filed return indicated on the Form. 

One important side note is that each IRS Form 4506-T provides access to tax transcripts for only one type of tax return at a time, like IRS Form 1040. VA-approved lenders that need access to more than one type of tax return may ask VA borrowers to fill out one Form 4506-T for each type of return for which a transcript is requested.

Experienced VA home loan professionals working for VA specialty lenders can best advise borrowers about how to fill out IRS Form 4506-T properly for the VA loan process.