VA loans are one of the most advantageous home financing options available to veterans, active-duty service members, and eligible surviving spouses. For spouses, understanding the eligibility criteria is key to accessing this valuable benefit. Whether you’re a surviving spouse or seeking to co-borrow with your partner, this guide will outline the requirements and scenarios that may apply.
VA Loan Eligibility for Spouses
Spouses of veterans or service members may qualify for VA loan benefits under specific circumstances. The eligibility requirements fall into two main categories: surviving spouses and co-borrowing spouses.
1. Surviving Spouses
Surviving spouses of service members may qualify for a VA loan if:
– The service member died in the line of duty or as a result of a service-connected disability.
– The surviving spouse has not remarried (with some exceptions for remarriages after age 57).
– The surviving spouse receives Dependency and Indemnity Compensation (DIC).
To confirm eligibility, surviving spouses must obtain a Certificate of Eligibility (COE) by providing the VA with proof of the service member’s death and other required documentation.
2. Co-Borrowing Spouses
If you’re married to an eligible veteran or service member, you can co-borrow on a VA loan. In this case:
– Both incomes can be used to qualify for the loan.
– The veteran’s entitlement is primarily used, but the loan must meet VA requirements for both borrowers.
Documents Needed for Spouses
To apply for a VA loan, spouses may need the following:
– Certificate of Eligibility (COE): Required for both surviving spouses and co-borrowers.
– Marriage Certificate: Verifies the spousal relationship.
– Death Certificate (if applicable): Confirms eligibility for surviving spouses.
– Proof of Income: Necessary for co-borrowing spouses to qualify based on combined income.
Benefits for Spouses Using VA Loans
Spouses who qualify for VA loans can enjoy several significant benefits:
1. No Down Payment: Finance up to 100% of the home’s purchase price.
2. No Private Mortgage Insurance (PMI): Save on monthly costs typically required for low-down-payment loans.
3. Competitive Interest Rates: Access lower rates compared to conventional loans.
4. Flexible Credit Requirements: Benefit from more lenient credit score standards.
Things to Consider
While VA loans offer unmatched benefits, there are important considerations for spouses:
1. Primary Residence Only: The property must be used as the primary residence of the borrower or co-borrowers.
2. VA Funding Fee: This one-time fee applies to most loans but is waived for some surviving spouses.
3. Shared Responsibility: Co-borrowing spouses share equal responsibility for the loan repayment.
FAQs About VA Loan Spouse Requirements
Can a surviving spouse use a VA loan more than once?
Yes, if the loan is paid off or the home is sold, the entitlement can be restored for future use.
Can unmarried partners qualify for a VA loan?
Only legally married spouses are eligible to co-borrow on a VA loan. Unmarried partners must be listed as non-occupying co-borrowers, which may require additional qualifications.
Are there exceptions for remarried surviving spouses?
Surviving spouses who remarry after age 57 may still qualify for VA loan benefits under certain conditions.
How to Get Started
If you’re a spouse looking to take advantage of VA loan benefits, understanding the requirements and gathering the necessary documentation is the first step. Contact Us today to explore your options and start your VA loan application. Our team is here to guide you every step of the way.
