Spouses and widows of U.S. military veterans may apply for VA loans in their own right or as co-borrowers. Considering what military spouses do for their spouses and children and how much they handle the home-buying process, it's only fair that they receive benefits, too. Keep reading to learn about the va loan spouse requirements and the necessary steps to apply.
Is a VA Home Loan Available to Military Spouses?
Spouses of active-duty military members or veterans can't purchase a house with a VA loan alone, but they may co-borrow. They will need to prove their ability to repay the loan just like any other prospective borrower. By co-borrowing, you won't just get VA loan savings. As an added bonus, you might assist your service member partner get a bigger loan, better credit conditions, or perhaps both.
The Honoring America's Veterans Act of 2012 allows a living spouse of a former soldier to qualify for a VA loan, but a spouse of a former soldier or active-duty military member cannot. By passing this legislation, surviving spouses of veterans are now eligible for VA home loans. Requesting a Certificate of Eligibility as the living spouse of a deceased veteran is possible, provided you fulfill at least one of the VA's service criteria listed below. The veteran must meet these requirements to be considered for benefits:
- Be presumed dead in the line of duty or POW.
- Married someone who died in duty or due to a service-connected impairment and then didn't remarry until you become 57 or December 16, 2003, whichever came first.
- Have a complete inability to move or utilize their limbs and have subsequently passed away, albeit their handicap might not have been the direct cause of their passing.
Do Spouses Need To Be Co-Borrowers On A VA Loan?
Even if you are eligible for a VA loan for a spouse and fulfill the qualifications, you will still need to consider whether or not it makes financial sense to include your partner as a co-borrower on loan. This, like every other aspect of the home-buying procedure, is a financial choice that needs careful thought and analysis on your part. Your chances of getting a VA loan authorization and the conditions you're qualified for might be impacted by a variety of factors, including your spouse's credit rating, so it's important to do the numbers and think about all of your available choices. If you're still on the fence, here's a quiz. Discuss your individual circumstances with a loan officer to determine if becoming a co-borrower is the best option for you.
Co-Borrowers and VA-Mortgage Approval: What You Need To Know
A VA loan application made as a couple will typically be evaluated based on the following criteria:
- Income
- Debt
- Financial records and ratings
- Assets
- Work Experience
If your spouse and you both have different financial situations, cosigning on loan together might either improve or decrease your chances of being approved for the loan; therefore, it is important to examine the situation carefully before going after va loan requirements for spouse and other things. If there is another borrower whose income and credit history can be used to secure the loan, the lender may be more inclined to endorse the loan. Loan eligibility is impacted, however, by issues with credit or debt. Consider applying separately if you or your partner lacks an impeccable credit history or has a substantial amount of existing debt. If adding your name to the mortgage would hurt your spouse's odds of getting a good rate, leaving your name off the title could be the better option.
Do Military Transfers Affect Spouse Requirements?
You may be curious how a military transfer or relocation would affect your candidacy for a VA loan if you are the partner of an active-duty soldier. Although moving is sometimes regarded as one of the most difficult experiences a military family can go through, it's a routine practice and probably won't have an impact on your qualifying for a VA loan. But one of the hardest things you might have to deal with is a shift in income.
Mortgage underwriters want a stable earning history. When moving, there is often a time when you are jobless as you look for a job in your new place. Luckily, lenders that are acquainted with the VA loan procedure often take this into consideration and will consider the reality that you currently have a job or getting housing support.
Can A Divorced Ex-Spouse Get A VA Loan?
Divorce makes everything more difficult, even receiving benefits from the VA. The ex-wife of a former soldier or active duty service member is not eligible for a VA home loan by themselves after a divorce. But the house they previously bought together may still be occupied without affecting the loan. Divorce may have the following effects on a VA loan:
Occupancy requirements:
In order for the former soldier to continue receiving the advantages of their VA house loan, the house must be continuously occupied by the veteran. If not, the mortgage should be refinanced or sold.
Entitlement issues:
If the couple had a divorce after purchasing the property with a loan supported by the Veterans Administration (VA), the entitlement could not be reinstated. The veteran will have to pay for their new house out of pocket if they wish to use a VA loan to do so.
Ending Note
Military spouses have a lot of responsibilities, as we know that va loan include spouse requirements. They often have to handle the stress of relocating in addition to managing all of the household responsibilities in the absence of their spouse, who is away from home. The VA makes getting a house loan very simple. And by making it possible for the alive spouse of a former soldier to get a VA loan, they keep helping the family of the veteran even after his death.
