Non Veteran Co Borrower On A VA Loan - HomePromise (2024)

FAQs

Can a non-Veteran be a co-borrower on a VA loan? ›

Yes, VA loans allow co-borrowers on the loan. Acceptable co-borrowers include a Veteran and non-veteran spouse, two married Veterans where only one Veteran uses their entitlement, two married Veterans where both Veterans use their entitlement, and two non-married Veterans where both Veterans use their entitlement.

Yes, an unmarried couple can apply for a joint VA loan. Whether it's two friends or a brother and sister applying for a mortgage, the application won't be treated any differently. And lenders will consider the income of both applicants.

In addition to major determinants like credit score, income and debt obligations, there are additional eligibility criteria that lenders typically look for: Financial History: Recent bankruptcies, judgments or liens in the last two to seven years in a co-borrower's history may make loan approval difficult.

In addition to the service requirements, lenders will evaluate the borrower's financial information to ensure they can repay the loan. But when assuming a VA loan, the new borrower will not need to meet any military service requirements. With that, non-veterans can assume a VA loan.

Can a non-borrowing spouse also be on the title to a VA loan? In general, yes. If the house isn't in a community property state, the non-borrowing spouse can be listed on the title without having to reveal financial details. To prove ownership, he or she will need to sign title paperwork as needed by state law.

No, military spouses are not eligible for VA loans on their own. In almost all cases, the VA-eligible Veteran must be the primary borrower. However, surviving spouses may be eligible for a VA loan, typically if they haven't remarried and their spouse died in the line of duty or due to a service-connected disability.

If you're a Veteran and want to apply for a VA mortgage with your friend, then a joint VA loan might be the right way to go. The joint VA loan program allows Veterans and/or active-duty military members to use a joint borrower who is not a spouse or other Veteran.

A co-borrower is an additional borrower who can be a spouse, parent, sibling, or any family member, or even a friend, who will be equally liable for the loan.

Although requirements can vary by lender, a cosigner typically needs to have good to excellent credit (670 and up) to cosign a loan or credit line. Lenders look at a cosigner's credit score and report as well as their income and assets to determine whether they qualify for a loan.

Since the borrower and co-borrower are equally responsible for the mortgage payments and both may have a claim to the property, the simple answer is that it likely doesn't matter. In most cases, a co-borrower is simply someone who appears on the loan documents in addition to the borrower.

Does a buyer have to be a veteran to assume a VA loan? ›

You don't have to be a Veteran to assume a VA loan, although there are some risks involved for Veteran homeowners who allow civilians to take over their mortgage (more on that later). Loan assumptions and traditional home purchases differ in some fundamental ways.

Civilian ex-spouses can keep the home secured by a VA loan after a divorce as long as they assume the VA loan or refinance to another loan type.

Generally, co-borrowers share the title of the home. But this isn't always the case since the loan and the title are separate. Be aware that if you're a co-borrower and your name isn't on the title, you'll still be responsible for paying off the mortgage – but won't have the right to use the house.

Unacceptable VA Loan Uses

A VA loan cannot be used for: Purchasing a home as an investment property. Veterans can't use VA financing to purchase a home solely as an investment property. VA loans are designed to fund primary residences for service members.

So if a parent qualifies for a VA loan, they can use their benefit to buy a house for the child to occupy. It's important to know applicable occupancy situations can vary and should be discussed with your VA lender.

It Depends on the Co-Borrower

If you are in a domestic partnership or a long-term relationship but aren't married according to your state's laws, your partner will only be able to be a co-borrower if they're a qualified veteran or current servicemember. If they're not, you'll have to be the sole borrower on the loan.

A: No, the children of an eligible veteran are not eligible for the home loan benefit.

VA loans are used to finance an owner-occupied home (click here to learn more) and are not available to finance investment property, a vacation or second home. The application is very specific as it states, “Do you intend to occupy this property as your primary residence?” and there is really no other choice.

Whether you're a VA loan borrower or someone interested in taking over another person's VA loan, you may wonder if the mortgage can transfer from one person to another. The answer is yes—qualified buyers can assume responsibility for a VA home loan through a process called VA loan assumption.