VA Loan Spouse Requirements
VA Loan Spouse Requirements. Military spouses have the benefits on homebuying process, plus spouses have their own role and eligibilities in VA loan. Firstly, you’ll need to know whether your spouse is also a service member or a veteran, then they’ll be eligible to VA loan benefit. Secondly, if there is one couple where is the member is a veteran and the other is not in military looking to buy a home with VA loan benefits, only one spouse needs to be eligible for a full benefit of VA loan. VA Loan Spouse Requirements.
What are the terms and benefits of the mortgage?
Firstly, no down payment. This is a huge advantage for military. A small percentage of down payment seems small on paper, but in reality, it could pile up into a thousand of dollars or even more. Secondly, no mortgage insurance. Usually, other mortgages often come with monthly mortgage insurance that is expensive. Next, low interest rates. VA loan has the lowest mortgage rates for a while now. It could be used for building equity rather than paying interest. Then, you could get up to 100% of refinancing value. Lastly, it has high loan limits. But then again, it’s not saying that VA loan is the best fit for every military or veteran. Surely there are pros and cons to every loan type, but by far VA loan has the best financial option to date.
So, what do you need to do if you want to use the VA loan plan for your or your spouse?
If both couples are veteran or active members, then you’ll need to decide whether you want to use both benefits of the members. If only one member uses the entitlement of the VA loan, the lenders will process only one spouse who is a veteran or active member. If both members are planning to use the entitlements, then you are looking into a joint VA loan. This will need additional paperwork, while joint VA loan for married couples usually will be approved automatically by the authority.
If there is only one member of the couple who is a veteran or active member, then this time, you’ll need to decide whether the non-military person is going to be a co-signer or not. If the non-military person is not going to be a co-signer, then the lender may not have to look into the credit history, but their debt will be included in the household liabilities. If the spouse is a co-signer, then their income, debts, and credits will be need to be verified by the lenders just like the borrower.
Then, what are VA loan co-signer requirements? If you are going to decide that your spouse will be a co-signer for the VA loan, it’s good to know what a co-signer is. While co-borrower is more common than co-signer, both are actually not a same thing. A co-borrower is more shares the same responsibility for the mortgage payments, and shares the benefits of homeownership. Plus, a co-borrower could be listed into the title, while a co-singer is not. Now, a co-signer is responsible for the debt of the borrower, but a co-signer is not eligible to be included into the titleholder.
Now, a VA home loan has numerous lenient requirements. Like the range of minimum credit score, between 580 and 640, and no down payment as stated above.
While the requirements do not strictly go against VA-eligible borrowers, but they might not qualify for a loan due to low credit score, or high debt ratio. However, you are allowed to get a VA loan co-signer to help you. This co-signer most likely will need to be your spouse or another VA-qualified borrower. With a co-signer, it increases the income total of the borrower, thus increasing both the borrower and the co-signer financial strength. These made both the borrower and the co-signer are financially and legally bound to the loan.
Then, what are the requirements for a VA co-signer? Firstly, this person must occupy the home with you. Secondly, either they are your spouse or just someone eligible for VA loan in general. Now, when it comes to the VA mortgages, the co-signer must also be qualified for the loan. Meaning it is required for the co-signer to have a minimal credit score, low debt to income ratio, or information to foreclosures, bankruptcies; so, these numbers will be considered by VA lenders for the co-signer. The better the number of the co-signer have, the higher the change it will be approved by the VA lenders.
Basically, VA co-signer have the same responsibility as the primary loan borrower, if you, as the primary loan borrower fail to pay back the loan as scheduled. You need to make sure that your co-signer has a good credit score. If your co-signer has a low credit score when you apply for a VA loan with co-signer, it will lower the chance of you getting the loan even if you, as the primary borrower has a good credit score. So, you need to think carefully whether you’ll need a co-signer or just solely act as a primary VA loan borrower.
But how do you if your family member is eligible for VA loan?
You’ll need to look for these general rules; veterans are eligible once they served active duty for 90 days during war, or 181 days during peace. If the borrower is an officer, they have to begin their service at least after October 1981.
Then, what if your military spouse deceased?
There are some general rules on how you will get the VA loan benefits, as a surviving spouse and if your military spouse is deceased. The surviving spouse will be eligible for VA home loan if they are not remarried, and these are the general rules of the eligibility rules; their spouse died in the service, their spouse is MIA or missing in action or POW or prisoner of wars for at least 90 days, their spouse is continuously disable for a period of time. VA Loan Spouse Requirements.