The Department of Veterans Affairs didn’t only create VA loans for veterans and active service members. Qualifying spouses can also use these financial products to buy homes or refinance their primary residences. The department has various rules in place based on the status of the marriage, if the veteran is alive and safe, and other factors. You will also have to fulfill the lender’s requirements based on components like your credit score and debt-to-income ratio.
Wondering if you are eligible to get a VA loan as a spouse? This guide will cover the VA loan spouse requirements.
Do Spouses Qualify for VA Loans?
Spouses can qualify for VA loans. While your veteran partner can help you get a loan through their eligibility, surviving spouses are also eligible under certain conditions.
Who Qualifies as a Spouse for VA Loan Purposes?
To qualify for the VA loan program, a spouse must be deemed as a survivor. The surviving spouse will have to provide a Certificate of Eligibility (COE) from their veteran. One of these conditions must apply for a spouse to be eligible for a VA loan:
- The veteran must be missing in action or a prisoner of war.
- The veteran died while in service from a service-connected disability, and you didn’t remarry before you were 57 years old.
- The veteran died from a disability, even if it wasn’t the cause of death (in certain situations)
What are the VA Loan Spouse Requirements in 2024?
The requirements for a VA loan aren’t just related to the veteran’s service. These are all of the requirements a surviving spouse should consider.
General Requirements for VA Loans
The VA loan program has service requirements, but you will also have to fulfill the lender’s requirements. Service requirements are exclusive to the VA program, while credit and income requirements apply to all types of mortgages.
Service-Related Requirements
Service members must have served at least 90 consecutive days without a break in service to be eligible for a VA loan. Veterans have a minimum active-duty service requirement that depends on when they served. Anyone who served between August 2, 1990, and the present must fulfill one of these service requirements:
- At least 24 continuous months
- The full period of which you were called or ordered to active duty (90-day minimum)
- At least 90 days if you were discharged for a hardship or a reduction in force
- Less than 90 days if you were discharged for a service-connected disability
Credit and Income Requirements
You typically need a 620 FICO score and a 41% debt-to-income ratio or lower to qualify for a VA loan. Each lender has different requirements, and some of them will work with you if you have a 5 0% debt-to-income ratio.
Documentation Needed to Prove Spousal Status
You can provide a marriage certificate, documentation of joint ownership of a property, a lease showing that you both lived at the same address and other documents that can verify marriage. You can also provide birth certificates for any children you have had together.
Specific Scenarios Involving Spouses
These are some of the specific scenarios to consider if you are a spouse of a veteran.
Surviving Spouses and VA Loan Eligibility
The veteran must have died in combat or from a disease incurred in service. A surviving spouse is also eligible if the veteran is missing in action or is a prisoner of war.
Active Duty and Deployed Military Spouses
Spouses are eligible to use VA loans once a member in active duty has fulfilled one of the service requirements.
Divorced Spouses and VA Loan Eligibility
Divorced spouses are not eligible to use a VA loan. These individuals must use a different type of mortgage to buy or refinance a house.
Loan Process and Spousal Involvement
These are the guidelines to keep in mind for the loan process.
Joint Loans with a Military Spouse
Spouses can co-sign VA loans. A co-signer can help the veteran qualify for better financing since the spouse’s income can reduce the debt-to-income ratio. A high credit score on the spouse’s side can also contribute to a lower rate and better terms.
Spousal Consent and Signature Requirements
A spouse cannot take out a VA loan without the veteran’s approval unless the spouse qualifies as a surviving spouse. If the veteran is still alive and doesn’t qualify as missing in action or as a prisoner of war, that individual must be a part of the loan. A spouse cannot take out a loan without having the veteran as a co-borrower or co-signer.
Benefits and Protections for Spouses
These are some of the perks of the VA program for spouses.
Spousal Rights in the Homeownership Process
Spouses can be added as co-owners for the property. They also have the right to be co-signers for the VA loan, which can potentially result in better rates and terms. Surviving spouses can take out VA home loans and get a VA refinance for their primary residences.
Spousal Protection under VA Loan Regulations
Spouses have several protections under the VA program. You don’t have to pay private mortgage insurance and can buy a property even if you put zero money down. You also will not receive late charges unless your payment is more than 15 days overdue. The Department of Veteran Affairs also has limits on your late fees and interest rates. Lenders are not allowed to charge prepayment penalties if you want to pay off the balance early.
Where to Get More Information and Other Resources
You can visit the Department of Veteran Affairs website to get additional resources on your rights and the perks of using a VA loan. Spouses can also reach out to lenders to compare rates and discover the eligibility requirements. If you have a 620 credit score and a debt-to-income ratio below 41%, you should have an easier time qualifying for most VA loans.
You can also reach out to The Federal Savings Bank regarding your VA loan purchase or refinance needs. Whether you are a veteran, active duty service member, spouse, or part of a military family, The Federal Savings Bank is here to assist you in achieving your homeownership goals. In addition to providing VA loans, The Federal Savings Bank offers other resources and information to help you navigate the home-buying process. Visit their website for more information on VA loans and how they can help you secure the financing you need to purchase your dream home.
FAQs on VA Loan Spouse Requirements
The veteran and spouse can be on the title on a VA loan. A spouse may be the only person on the title if the spouse qualifies as a surviving spouse.
Service members are not required to list their spouses on VA loans. Not listing the spouse can be beneficial if the spouse has bad credit or a lot of debt. However, it’s often a good idea for the service member and spouse to be co-signers.
Your spouse’s financial situation will impact your VA loan eligibility if you list your spouse as a co-signer. Lenders review your finances and the co-signer’s finances to determine the credit score and debt-to-income ratio. A spouse with a significant amount of debt may want to avoid co-signing the loan, as it can hurt eligibility and result in a higher interest rate.
A domestic partner is not eligible to receive a VA loan. The Department of Veteran Affairs only gives loans to qualifying spouses, with marriage as the prerequisite. A domestic partner who previously served in the military and qualifies for a VA loan under their own merit can take out a VA loan.
