The Advantages Of A Joint VA Loan
If you’re a Veteran and want to apply for a Joint VA mortgage with someone who is not your spouse, then a joint VA loan might be the right way to go. The joint VA home loan program allows Veterans and active-duty military members to use a joint non veteran co borrower who is not a spouse.
A joint VA loan is a mortgage for eligible veteran borrowers to purchase a home with another VA eligible borrower or non veteran co borrower. It’s important to understand that the Department of Veteran Affairs considers it a “joint” loan only when both Veteran borrower and another eligible borrower are responsible for the loan amount. Active-duty military members, veterans and surviving spouses can take advantage of the VA home loan program.
Most lenders won’t allow these kinds of loans and will not allow Veterans to purchase a home with his or her sister, brother, mother, father, son, or even daughter. For VA eligible borrowers, this program is fully available with HomePromise and, 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.
When applying for a joint VA loan with a non veteran co borrower, your VA loan benefit entitlement applies only to you. Your entitlement is the only portion of the loan that the VA will guarantee to your lender if you ever default on your loan. With your full entitlement, the VA guarantees up to 25% of your portion of the loan.
Call HomePromise today to find out about all of the unique ways you may qualify for a VA loan with a co-borrower who is not a Veteran or spouse.
When Should You Apply For A Joint VA Loan?
A joint VA loan is for Military members and Veterans in these scenarios:
Not enough income to qualify on your own.
If you apply for a joint VA loan with another eligible military borrower or non veteran co borrower or even a non occupant co borrower then, your cosigner will help you qualify using their income.
If you have a high debt-to-income (DTI) ratio.
Most lenders prefer your debt-to-income (DTI) ratio to be no more than 41%. All of your debt will count to lenders, including student loan payments. When applying with another eligible Veteran or non–Veteran borrower with less debt or a higher income, this helps bring down your DTI.
If you already purchased a home with your VA loan benefit.
If you already purchased a home using your VA loan home benefit and need to buy a new home before selling, your VA loan entitlement will be reduced. Depending on your unique circumstances, your entitlement may even be eliminated when looking for a second VA loan. But, with partial entitlement remaining, borrowing with another eligible veteran or military member co borrower with full entitlement helps ensure the VA guarantees your second VA loan.
When you’re looking to purchase a multifamily or multi-unit home.
For military co-borrowers, you’re able to apply for a multi-unit property with up to four units. Multi-unit properties are great options for veterans who want to get income from their home as an investment property. One key requirement is that you have to live in the home as your primary residence.
Types Of Joint VA Loan Co Borrowers
When it comes to joint VA loan applications, you have the option to add a spouse as a cosigner with other lenders but, with HomePromise, military members and Veterans have several joint VA loan options to choose from. We accept joint VA loan applications with both military and non–military co borrowers.
For example, the mortgage can be divided between two military borrowers using both of their entitlements. Or we will accept applications where a military member or Veteran uses his or her entitlement while a spouse’s income helps to meet the DTI qualifications.
Understand that when applying for this type of loan, the eligible military borrower must be earning enough income to cover the their portion of the loan.
Apply now for a joint VA loan with your mother, brother, sister or almost anyone. Give us a call at the number below to learn how you can qualify in no time.
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VA Loan & Refinancing Experts
The VA Home Loan benefit is the best mortgage choice for military members, Veterans, and their surviving spouses. For almost every Veteran, it is a better choice than a Conventional, FHA, or USDA loan. Best known as a no-money-down loan, the VA Home Loan benefit provides a low-fee option for military members, Veterans, and surviving spouses meeting the eligibility requirements set in place by the Veterans Administration.