Using a Veteran Home Loan to Buy a House for a Child or Parent (2024)

FAQs

Using a Veteran Home Loan to Buy a House for a Child or Parent? ›

Using a VA Loan for a Dependent

Family members and dependents of service members and Veterans may be eligible for VA benefits. These benefits may be used to advance in a career, get an education, or provide supplementary income. Surviving spouses may benefit from VA-guaranteed home loans, too.

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. Most lenders won't allow these kinds of loans and will block Veterans from buying a home with a sister, brother, mother, father, son, daughter, or someone who is unrelated.

Apply With Your Mother For A Joint VA Loan

This program is fully available with HomePromise with no restrictions on who may be a co-borrower with the Veteran as long as the co-borrower is 18 or older, is a citizen or permanent resident and qualifies based on standard VA guidelines applicable to Veterans.

With the VA home loan program come questions–is this program similar to other VA benefits which may be transferable to a spouse or dependent? The short answer is no, VA loan benefits are not transferable to children.

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

VA loans can be transferred to children in the form of VA loan assumptions. However, this process is somewhat uncommon and does come with its own challenges. VA loan assumptions between a Veteran parent and child are most common when the Veteran dies and their child wishes to keep their home with the same loan terms.

Yes, VA loans are assumable. For prospective buyers, the ability to assume a VA loan with a low interest rate is a significant benefit when rates are on the rise. But assumptions can also present some risks for the Veteran allowing their loan to be assumed.

As the spouse or dependent child of a Veteran or service member, you may qualify for certain benefits, like health care, life insurance, or money to help pay for school or training.

You may be entitled to comprehensive health care benefits and affordable dental coverage through the VA dental insurance program. You may be eligible for education and training assistance to earn a degree or professional certificate, become an apprentice, or learn on the job.

Can I rent out my VA loan home after 1 year? ›

Can I rent out my VA loan home after a year? According to VA occupancy requirements, the buyer must occupy the residence within 60 days and use it as their primary residence. Generally, homeowners are expected to occupy the property for at least 12 months. After a year, it is permitted to rent out the home.

No, the VA does not specifically reference what age a home can be for a VA loan. However, other factors must be considered when buying an older home.

During the VA loan application process – and when you close on your home purchase – you'll be required to sign VA Form 26-1820 and VA Form 26-1802a. These two documents indicate that you, as the home buyer, intend to personally reside in the house as your primary residence and use the property as your main address.

Using a VA Loan for a Dependent

If you are a qualified VA loan recipient, you may purchase a home where a parent or child will reside. However, you too must live in the home as your primary residence. The VA will not approve loans for homes used solely by others.

The veteran's surviving family members or other beneficiaries must repay the VA loan one way or another. Otherwise, the VA will foreclose on the property. This means the lender will repossess the house, and the family will no longer have access to it, even if they inherited the property when the veteran passed away.

What is a Dependent Parent Benefit? A Veteran whose parent(s) are dependent upon him or her for financial support may be paid additional benefits. The dependent parent benefit is paid based on need.

The VA doesn't expressly prohibit non-spousal co-borrowers, otherwise known as a joint VA loan. In those instances, the agency tells VA lenders that it will only guarantee the eligible borrower's portion of the home loan. That leaves a chunk of the mortgage without the government backing the program relies upon.

The answer is yes—qualified buyers can assume responsibility for a VA home loan through a process called VA loan assumption.

For spouse, dependent child

Apply for a Certificate of Eligibility (COE) for VA home loan programs to buy, build, repair, or refinance a home. Or, if you're having trouble making mortgage payments on a VA-backed loan, get help to avoid foreclosure and keep your house.

If you're the spouse, surviving spouse, dependent child, or family caregiver of a Veteran or service member, you may qualify for health care benefits.