Who Can Be a Co-Borrower On My VA Loan?

A co-borrower is someone who shares responsibility for the loan with you. Co-borrowers can help you qualify for a loan, but there are some things to consider before adding one to your application.

To be eligible for a VA-backed loan, your co-borrower must:

• Be 18 years or older and a spouse, unmarried partner, family member, friend, or anyone else you would like to buy a home with
• Have sufficient income to qualify
• Have an acceptable credit history

Your co-borrower does not have to be an active duty service member or veteran.  If you choose to use a co-borrower, both you and your co-borrower will be jointly responsible for repaying the loan. This means that if either of you fails to make payments, the other person is still responsible for the entire loan balance. You should only add a co-borrower to your loan application if you are confident that both of you can afford the monthly payments.

Can My Spouse Be A Co-Borrower?

Yes, your spouse can be a co-borrower, regardless of whether your spouse ever served in the military.

If you are married and both spouses are veterans, then it may be to your benefit to include your spouse as a veteran co-borrower on your VA loan even if they are not currently serving in the military. There are some requirements that must be met in order for this to be possible, such as both spouses being eligible for VA benefits, both spouses being able to get a Certificate of Eligibility (COE), and both being listed on the loan application. 

However, if you meet these requirements, then including your spouse as a co-borrower can help you qualify for a larger loan amount.

Can a Friend or Family Member Be a Co-Borrower?

If you have a family member or friend who is not a veteran, but would like to help you with the purchase of your home using a VA loan, they can apply to be your co-borrower.

The co-borrower must be a U.S. citizen or permanent resident alien, and meet all other credit and capacity requirements for the loan. If approved, they will be jointly responsible for repaying the loan.

Some VA lenders won’t allow this kind of VA loan and even will tell veterans that these kinds of loans are impossible. The VA loan experts at HomePromise know how to get these loans closed so please call today at 800-720-0250.

Does My Co-Borrower Need to Have Good Credit to Qualify?

If you’re looking to apply for a VA loan, you may be wondering if you and your co-borrower both need to have good credit in order to qualify. The answer is that both you and your co-borrower must have a history that meets VA guidelines. But, some VA lenders have guidelines tighter than the VA.  So, finding a flexible lender that will handle a difficult credit history can be very important.

HomePromise will make VA loans with a credit score of 580. Call today at 800-720-0250 to see if you qualify.

Will a Co-Borrower Increase My Chances of Approval with a VA Loan?

If you’re looking to get a VA loan, you may be wondering if having a co-borrower will help your chances of getting approved. The answer is yes, having a co-borrower may increase your chances of getting approved for a VA loan. Having a co-borrower can help you meet the income requirements for a VA loan. Note that the co-borrower may have debts that will have to be considered which may hurt your chances of getting approved.

So if you’re looking to get a VA loan and want to improve your chances of getting approved, consider finding a co-borrower who has a good income and doesn’t have debt levels that will hurt your loan application.

How Many Co-Borrowers Are Allowed on a VA Loan?

Some lenders will restrict VA loans to only a veteran and their spouses. More flexible lenders allow additional co-borrowers. HomePromise will allow up to four total borrowers on a VA loan – the veteran, spouse, and two additional co-borrowers who may or may not be veterans.

There are some unique VA rules that have to be understood and followed when these kinds of VA loans are closed.  Call the VA loan experts at 800-720-0250 to see if you qualify.

Can I Remove or Add a Co-Borrower During the Life of My Loan?

If you have a co-borrower on your VA loan and circumstances change so that you no longer want them on the loan, there are a few things you must do in order to remove them. You’ll first need to get their permission to take their name off of the loan and then refinance the loan into your name only.

This process can be complex, so it’s best to reach out to an expert VA lender like HomePromise for help. If you want to add a co-borrower during the life of your VA loan, the same process would apply.  You would refinance your loan so that two borrowers would be obligated. 

Does a VA Co-Borrower Have to Live in the Home?

When it comes to a VA loan with co-borrowers, there’s often a misconception that they must live on the same property as the primary borrower. However, this couldn’t be further from the truth! In fact, one of the most significant benefits of having a co-signer on your VA loan is that they don’t have to occupy the same residence. 

This means that you can enlist a trusted family member or friend who doesn’t necessarily need to move in with you but still wants to help you secure better financing terms. Very few VA lenders will allow this kind of loan but HomePromise does.

Thanks to this flexibility at HomePromise, you can maximize your chances of getting approved for a VA loan while keeping your living arrangements separate and independent. So if you’re considering adding a co-borrower to your application, know that distance isn’t an obstacle – it’s an opportunity!

What Happens if My Co-Borrower Defaults on Their Portion of Payments?

If your co-borrower is making part of your monthly payment and defaults on their portion of the payments, you will still be held responsible for the entire loan. 

This is why it’s so important to choose a co-borrower wisely and to make sure that you can trust them to make their payments on time.

If you’re not sure whether or not your co-borrower will be able to make their payments, it’s best to avoid taking out a loan with them.

Call the HomePromise VA loan experts at 800-720-0250 to get specific advice about your VA home lending plans.

Buying A Home During A Permanent Change Of Station

If you’re in the military, then you know that change is inevitable. Permanent Change of Station (PCS) orders can arrive suddenly. This can cause you to quickly relocate to a new place. You must be prepared to pick up your life and move on short notice.

While this process can be overwhelming, it also presents a unique opportunity – buying a home!

Yes, buying a home during a PCS may seem like an added stressor but trust us – it’s worth considering. In fact, there are plenty of benefits that come with purchasing a home during this transition period.

You may have a Permanent Change of Station (PCS) coming up soon or in the future. Now is the ideal time to stop throwing money away from renting a home.

What Is a Permanent Change Of Station (PCS)

A Permanent Change of Station (PCS) is a term used in the military. It means relocating an active duty service member from one duty station to another. The move is typically due to changes in job assignments, and it can occur within the United States or overseas.

A PCS (Permanent Change of Station) can be overwhelming. Many elements must be taken into consideration, including:

• Relation assistance
• Finding housing
• Securing schools for children
• Obtaining new licenses and registrations

This process differs from temporary duty assignments (TDY) as TDY involves shorter moves lasting less than 6 months.

Buying a home during a permanent change of station presents a unique opportunity for active military members. Plus, if your PCS move is your last one before retirement or leaving the military, buying a home is a great idea.

PCS orders usually come with detailed information about your travel arrangements and any allowances you may receive during the move. As a service member, you are eligible for government-funded resources during a Permanent Change of Station (PCS). These resources include moving companies and storage facilities if necessary.

It is essential to gather any documents needed for your transfer. Such documents include clearances and medical records needed at your next assigned destination. Knowing what documents are needed ahead of time helps ensure a smooth transition between stations.

The Benefits of Buying a Home During a PCS

Buying a home during a Permanent Change of Station (PCS) can bring several benefits to military families. One of the major benefits is that people can build equity in their own property. Rather than giving money to a landlord through rental payments, you can invest in your own asset.

Homeownership also provides stability for families who might be moving frequently due to their service obligations.

Buying a home during PCS (Permanent Change of Station) can be advantageous. It could lead to significant savings on taxes. Homeownership may have tax deductions, such as mortgage interest, property taxes, and closing costs.

Additionally, owning a home allows military personnel and their families to personalize the home according to their preferences without worrying about violating lease agreements or losing security deposits.

Purchasing a house during PCS can provide financial security. This will create an additional source of income after retirement from service. This can be done by renting or selling the property. A well-chosen property could appreciate over time, leading to a nice return on your investment.

A HomePromise VA loan expert can be a valuable resource to guide you through the home buying process. Give a call to 800-720-0250 to find out more information.

What to Look For When Buying A Home During a PCS

When buying a home during a PCS, it’s important to keep certain factors in mind. Use this guide to help get organized before purchasing a home during PCS.

• What location do you prefer? Do you want to live close to your new duty station or are you OK with some traffic and commuting farther away?
• What size and layout of the home do you want? Do you need multiple bedrooms or bathrooms?
• Will you be entertaining guests often? Would you prefer an open floor plan for guests?
• How much space do you need for your furniture and other possessions?
• What about safety? What is the crime rate in the area?
• How about schools for any children you may have or plan to have? What schools are available and how far away are they?

Make sure to set realistic expectations when it comes to what you can afford both upfront and long-term with mortgage payments and maintenance costs. By taking these factors into consideration when searching for a new home during a PCS, you’ll ensure that your next move is smooth sailing!

Call 800-720-0250 and talk to a HomePromise VA loan expert today to get more information about buying a home during a PCS.

HomePromise Helps Active Military Members

Buying a home during a permanent change of station can seem like a daunting task, but it may be the best decision you make for your family and your finances. By purchasing a home, you’ll have stability and security in an uncertain time.

While there are certainly challenges that come with buying during a PCS move, the benefits may outweigh them. You’ll have more control over where you live and how much your housing costs. Plus, owning a home means you’re building equity instead of throwing money away on rent.

If you decide to buy during your PCS move, make sure to research the area thoroughly before making any decisions. Find an experienced real estate agent who understands military moves and can help guide you through the process. Your HomePromise VA loan expert may be able to make some suggestions about how to find the best real estate agent.

With some preparation and planning, buying a home during your next PCS move could be the right choice for you and your family. Not only will it provide financial benefits in the long run, but also peace of mind knowing that wherever life takes you next, you’ll always have somewhere to call home.

While there are some challenges associated with buying a home during PCS like finding the right real estate agent or managing finances while relocating; the long-term benefits make it worth considering as an option for military personnel looking for more stability and ownership in their living situation. 

Call a VA loan expert at HomePromise for help today at 800-720-0250!

Debt Consolidation Loan For Veterans

Are you a veteran homeowner struggling with multiple debts and looking for a way to simplify your financial life? If yes, then a debt consolidation loan for veterans with HomePromise might be the right option for you. Debt consolidation loans could help you manage your finances by combining your total amount of debt into one manageable monthly payment using the equity in your home.

As a veteran, there are options available that cater specifically to your unique needs. Let’s take a closer look at how veterans can benefit from debt consolidation loans and why they may be the best option for you.

Debt Consolidation as A Veteran Homeowner

If you’re a veteran with multiple debts, you may want to consider a VA mortgage debt consolidation loan. The VA mortgage debt relief process involves taking out one loan to pay off auto loans, credit card debt with higher interest, or other personal debts. This can simplify your monthly payments and potentially save you money from high-interest debts.

There are several different types of debt management programs available (sometimes called debt management plans), so it’s important to compare your options before choosing one.

There are many debt management programs that negotiate with your creditors to settle your debts and pay less than the balance due.  In this process it is common that your credit score drops significantly, your accounts reach a default status and it may take longer to pay off your debts.

If you own your home, another option is a VA home loan with HomePromise, which is available to veterans who have served in the military and are able to get a Certificate of Eligibility (COE). VA home loans can be used to consolidate both federal and private student loans, as well as other types of secured debt and unsecured debts.

The interest rate on a VA loan is often lower than the interest rates on other types of loans, so this may save you money.

Before consolidating your debt, it’s important to understand how this type of loan works and compare the costs of each option. Consolidating your debt can also help simplify your monthly payments and may save you money on interest, but it’s not right for everyone.

How do Debt Consolidation Home Loans help Veterans?

A military debt consolidation home loan from HomePromise can be a great way for you to get your finances back on track. You may save money on your monthly payments and pay off debt faster by consolidating multiple debts into one loan if you apply for a loan that provides a lower interest rate than your other debts.

Debt consolidation with a VA home loan can benefit veterans in more than one way. It helps them improve their credit scores by ensuring all payments are made on time each month.

If you are a veteran homeowner with financial difficulties, it is worth considering consulting with an expert on cash-out loans and refinancing with HomePromise.

You can quickly and easily give us a call at 800-720-0250.

One of our experts can tell you if a VA debt consolidation home loan is the right option for you.

Apply for A Debt Consolidation Home Loan with HomePromise

The first step is to check your credit score and see if you qualify for a consolidation mortgage loan with us. If you have good credit, you may be eligible for a lower interest rate. This could save you money on your monthly payments.

A debt consolidation home loan with HomePromise may be a great way for veterans to manage their debt. Consolidating all of your monthly payments into one payment can save on interest and lower your overall monthly payment amount.

Call 800-720-0250 to talk with our VA debt consolidation home loan experts today!

Refinance To Pay Off Debt

Refinancing your mortgage is the process of taking out a new mortgage loan to pay off an existing loan. When refinancing to pay off debt, if the new loan has a lower interest rate than the existing loan it is possible to save money by lowering your monthly mortgage payment.

You can also refinance to pay off any non-mortgage debt you may have.

For some people, using the equity in their home, refinancing to pay off credit card debt is a great option over the more common “balance transfer credit card” method. Doing a balance transfer often does not give you much monthly payment relief.

If you’re struggling to make your current payments, you need a lower-payment solution.  A VA cash-out refinance may be your best option.

Refinancing can also help change the terms of your loan, such as shortening the length of the loan, to better suit your needs. 

Usually, the longer loan you have, the more interest you have to pay.

VA Cash Out Refinance Loan

When you refinance your mortgage using a VA cash-out refinance, you’re essentially taking out a new mortgage loan to pay off your existing mortgage balance – you will need to qualify for a new loan to do this.

That said, if you do qualify for a new loan, a cash-out refinance loan can be a great way to use your mortgage to pay off higher-interest credit cards and consolidate your debts.

Depending on your financial situation, by consolidating your debts into one monthly payment, you save money on interest and get out of debt faster.

Plus, if you have high-interest debt like credit card debt, refinancing can help you save big in your monthly payments.

If you’re thinking about refinancing to pay off debt, talk to a VA refinancing expert with HomePromise to see if it’s right for you: 800-720-0250

Best Time to Refinance to Pay off Your Debt

If you’re struggling to make ends meet each month or you’re simply looking to save money on interest and reduce your monthly payments, refinancing to pay off debt may be the best option.

But before you refinance, it’s important to understand when the timing is right.

Here are a few things to keep in mind when considering whether or not to refinance:

1. How long do you plan on staying in your current home?

If you’re planning on selling your home within the next year, it may not make sense to refinance as you’ll likely have to pay fees to do so.

However, if you plan on staying in your home for more than a year, refinancing could have a big impact on lowering your monthly payments.

2. What’s your current interest rate on your mortgage?

This is an important factor to consider as it will affect how much money you’ll save by refinancing. It’s worthwhile to think about refinancing as a solution.

This is especially true if you can get a lower interest rate than what you are currently paying. Even a small difference in interest rates can make a big difference over time.

But, even if your current mortgage interest rate is lower than you can get today, a VA cash-out refinance may still be a good idea. Interest rates on non-mortgage debt are usually much higher than mortgage rates so paying them off with a new mortgage may make sense. 

Call a HomePromise VA loan expert to find out if mortgage refinances to pay off debt are in your best interest at 800-720-0250.

Conclusion

Refinancing to pay off debt with HomePromise is a great option for those looking to reduce their monthly payments, obtain lower interest rates, or even get cash out for home improvements.

There are many reasons why someone may want to refinance debts they have – whether it be to ease the financial burden or simply have more breathing room in their budget.

Call HomePromise today and speak to a VA refinancing expert: 800-720-0250

5 Strategies for Strengthening VA Loan Applications

VA loans provide an excellent opportunity for active duty service members, veterans, surviving spouses, and their families to buy a home. But, with eligibility requirements, some people might find it tough to get approved for this type of loan. Fortunately, there are 5 strategies for strengthening VA loan applications.

Applying for a VA Loan

Applying for a VA loan can be a difficult process. If eligible for VA loan benefits, you’ll need to get a Certificate of Eligibility (COE). HomePromise can get this for you often faster than going to the VA directly.

We use a VA lender portal online to make getting your COE fast. This document proves that you’re eligible for the VA Loan program.

Call HomePromise at 800-720-0250 to ask for your COE today.

Be sure to have all of your financial documentation in order before starting your application. This includes things like pay stubs, tax returns, asset statements, and more. We will need this information to determine if you qualify for the loan. This information will also determine how much we’re willing to lend you.

If you have any questions, don’t hesitate to reach out to a VA loan expert with HomePromise at 800-720-0250 for assistance. Our experts are always ready to help give you advice. Call today to see if you qualify to access affordable homeownership opportunities.

1. Check Your Credit Score

A good credit score is important for many reasons. This can help you get the best interest rates on loans and credit cards. It can also help you qualify for a mortgage.

A strong credit score is beneficial. It indicates to lenders that you can be trusted as a borrower. This could result in more favorable terms and conditions on your loans.

In addition, a good credit score can help you qualify for a mortgage or car loan with more favorable terms. Having a good credit score may even help you save money on your insurance premiums.

2. Getting Pre-Qualified with a VA Lender

Veterans and active duty military members may be eligible for a VA loan. This type of loan is also a great option for those with a service-connected disability. The Department of Veterans Affairs provides a guarantee for these mortgage loans. The VA does not lend money, that’s done by VA-approved lenders like HomePromise.

The first step in applying for a VA loan is to get pre-qualified by a VA-approved lender. Pre-qualifying means the lender has evaluated your credit score and determined if you meet their standards for a VA loan.

Getting pre-qualified will give you an advantage when you’re ready to make an offer on a home. A pre-qualified letter will let the seller know that you’re likely to be approved for financing.

To get pre-approved for a VA loan, contact HomePromise at 800-720-0250. HomePromise will then obtain your credit report and evaluate your income and debts. If you qualify, HomePromise will provide you with a letter stating the amount of money you’re eligible to borrow.

Keep in mind that being pre-qualified for a VA loan does not guarantee that your loan will be approved. Other requirements for VA loans are as follows:

• The home you choose must meet VA property requirements
• The appraised value would have to be at or above your purchase price
• In most states, you will need a wood-destroying insect inspection
• A title insurance company will need to issue a title policy

HomePromise as a VA lender will help you get through all of these steps.

Call today at 800-720-0250 to get started.

3. The VA Home Loan Application Process

The VA home loan application process can be lengthy and complex. However, there are certain things you can do to strengthen your application and improve your chances of getting approved.

One of the most important things you can do is to make sure all of your financial documentation is in order. This includes your tax returns, pay stubs, bank statements, and any other relevant paperwork. Organizing your documentation makes it easier for a VA loan expert to review your application. This helps a VA loan underwriter give you a decision quickly.

To increase your chances of being approved for a VA home loan, you should have a good credit score. Improving your credit score can help you secure a loan. The higher your credit score, the more favorable you will look. But, some lenders, like HomePromise can even help you with a credit score as low as 580.

To get a higher score, pay off any outstanding delinquent debts or collection accounts before applying for a VA home loan. Doing so will ensure your application is successful.

Finally, it’s always a good idea to work with a qualified and experienced VA-approved lender. HomePromise can assist you throughout the entire process and help make sure everything is done correctly.

4. Appraisals and Inspections

VA appraisals are required in order to obtain a VA loan. Appraisals are conducted by a licensed appraiser and are good for six months from completion. The purpose of the appraisal is to determine the value of the property being purchased.

Home inspections are conducted by a home inspector.  In some states, home inspections must be done by certified home inspectors. The purpose of the inspection is to ensure that the property meets minimum safety and habitability standards.

5. Financing Your VA Loan Closing Costs

You can’t finance your closing costs on a VA loan when you buy a home. But, you can finance your VA Funding Fee.

Like many veterans, you may need to finance your VA Funding Fee when you purchase your home. The VA Funding Fee is a charge from the VA to guarantee your VA loan. You can pay it in cash at closing or roll it into your loan amount.

Even though you can’t finance your closing costs when you buy a home, another option is to negotiate with the seller to pay some or all of the closing costs. The seller may be more willing to make concessions when they need to sell quickly. Seller-paid closing costs are a common strategy.