Preconditions for a Spouse VA Home Loan

By Mabel Ekperen

It’s no mystery that vets and service personnel who qualify for VA loans receive a slew of advantages. It’s impossible to beat the chance to secure a mortgage with reduced interest rates and no deposit.

When eligible military people and veterans wish to incorporate their civil partner in the VA loan process, there are some additional concerns. Let’s look at the VA loan spouse criteria you should be aware of before applying for a VA loan.

How a Partner of a Military Officer Can Access a VA Home Loan

As a co-signer or co-borrower on a VA loan, you can be the partner or living spouse of active service or retired member of the military. This is fantastic news because the VA loan is a government loan with fewer limitations and no security deposit.

When a military partner co-signs on a mortgage, the loan terms are influenced by their earnings and financial history. As a result, a military spouse with a high income and good credit score may be able to assist the serviceman in obtaining a bigger loan or lower interest rates. A military spouse with a poor credit rating, on the other hand, may face higher interest rates.

So definitely, a military personnel’s spouse can qualify for a VA loan. However, before filling out the formal request, check your credit rating and earnings and if your credit numbers are low, you might want to wait.

Criteria For A Surviving Spouse To Get A VA Loan

Before the VA loan scenario for surviving spouses was altered, service veterans’ spouses could only apply for the VA loan if they died of military-related causes.

After 2012, however, the standards were modified to cover surviving spouses in the following circumstances:

Your spouse passed while serving in the military or as a result of a service-related illness.

For at least 90 days, your partner was MIA or a POW.

Your partner was discharged from the military with a complete disability rating and died from an unconnected condition.

After your spouse died, you didn’t remarry.

Depending on the sort of VA loan you’re looking for, the specific terms and conditions for surviving spouses may differ and you must apply for a certificate of eligibility if you believe you are eligible for a VA loan as a surviving spouse.

How a VA Loan Impact Divorce

The VA loan was created to assist veterans in realizing their ambition of owning a home and there are fairly severe residency criteria with this sort of mortgage that you wouldn’t have to bother about with most other types.

For starters, ex-service veterans’ spouses are not qualified for a new VA loan. That is a rather simple rule to follow. It becomes a little more tricky if you and your former partner are both on the same VA loan.

If the civilian spouse was a co-signer on the loan, they may be able to stay in the house after a divorce. However, if the civilian partner was not a co-signer on the loan, they are no longer allowed to live in the house once the veteran has left.

There are other entitlement problems to address if the civilian partner keeps the house and mortgage. The service member’s rights won’t be restored until his or her ex refinances the loan or pays off the current VA loan.

Finances after a divorce are never simple and a VA loan can add to the complexity.

Familiarizing yourself with the VA loan spouse criteria can make a major impact on the home buying journey as a military spouse.