What are the VA loan spouse requirements?

VA home loans¹ help eligible service members and veterans buy a home with no down payment and competitive interest rates. If you’re applying with a spouse, or you’re a surviving spouse, understanding VA loan benefit and eligibility can help you take the right steps to qualify.

We’ll go into who’s eligible, how applying with a spouse affects approval, what options surviving spouses have, and how divorce can impact VA entitlement and occupancy. Once you know more about VA loans, you can decide which kind of mortgage is right for you.

Can a military service member’s spouse get a VA loan?

There’s a major rule that VA loan candidates must follow: the eligible veteran or active duty service member must be the primary borrower. Their spouses can also qualify for the same VA loan as a co-signer or co-borrower. Qualified surviving spouses may actually be able to take out a VA loan on their own, which we’ll cover later.

The Department of Veterans Affairs notes that a VA loan for a veteran and their spouse is not designated as a joint loan with a veteran and a non-veteran borrower but simply as a loan to the veteran and their spouse. The same is true in cases of a veteran and fiancée who will marry before the loan closes.

This can be a positive since the VA home loan is type of government loan that offers lower restrictions and requires no down payment.

“However, be aware that the eligible veteran’s entitlement is used when they apply with a non-veteran spouse,” says Dennis Shirshikov

Applying for a VA loan with a spouse

When a veteran’s spouse co-signs on the mortgage, their income and creditworthiness will affect the loan details. If that spouse has a higher income and better credit rating, that could help the veteran qualify for a larger loan or better interest rates. But on the flip side, a military spouse with a bad credit score could lead to higher interest rates.

So yes, a veteran and their marital partner can be on the same VA loan together. But veterans should take a close look at their spouse’s credit score and earnings before putting that second name on the official application. You could ultimately decide to hold off if your spouse’s credit score is low. .

How can a surviving spouse get a VA loan?

What if your military husband or wife passed away? Fortunately, many civilian widows and widowers still qualify for a VA loan, although you must show a Certificate of Eligibility (more on this next).

In fact, the Honoring America's Veterans and Caring for Camp Lejeune Families Act of 2012 changed the borrowing landscape for surviving spouses pursuing a VA loan. Before 2012, military members had to have died of military-related causes for their spouses to apply for a VA loan. But after 2012, the requirements expanded to include surviving spouses in the following situations:

• Your spouse (veteran) is missing in action, or
• Your spouse (veteran) is a prisoner of war (POW), or
• Your spouse (veteran) died while in service or from a service-connected disability, and you didn’t remarry, or
• Your spouse (veteran) died while in service or from a service-connected disability, and you didn’t remarry before you were 57 years old or before December 16, 2003, or
• The veteran had been totally disabled and then died, but their disability may not have been the cause of death (in certain situations).

In addition, surviving spouses who remarried before December 16, 2003 (either on or after their 57^th birthday), must have applied before December 14, 2004, to be eligible for the VA loan.

Getting a certificate of eligibility as a surviving spouse

The exact eligibility requirements for surviving spouses can vary based on the type of VA loan you’re pursuing. If you believe you qualify for a VA loan as a surviving spouse, you'll need to apply for a Certificate of Eligibility (COE).

This document verifies your eligibility as a surviving spouse, indicating to the lender that you qualify for a VA loan. You can apply for your COE online, or your lender can personally assist you with this request.

Can a child of a veteran get a VA loan?

Unfortunately, a son or daughter of a veteran will not qualify for their own VA loan. This form of financing carries strict requirements and guidelines, ensuring that VA loans only help those who have served their country, along with eligible surviving spouses.

“A family member who is not eligible cannot use the veteran’s VA benefit to purchase a home in their own name. But a veteran can have a certain family member, including a child, be a co-borrower, which means the loan is still backed by the VA,” Mann says.

How can divorce affect VA loan spouse requirements?

The VA loan is designed to help qualified veterans achieve the dream of homeownership. Although spouses of veterans can be listed as co-borrowers on a VA loan, there are very strict occupancy requirements in matters of divorce. Post-divorce finances are never easy, but a VA loan adds more complications to them. Let’s drill down further to better understand.

Ex-spouses can’t get a new VA loan

The rule here is simple: Only spouses of veterans (or surviving spouses of deceased veterans) can benefit from a VA loan. The veteran spouse must be the primary borrower on the loan, unless they are deceased, in which case the surviving spouse can be the primary and sole borrower.

If you get divorced, the veteran’s ex-spouse will not qualify for a VA loan. But the veteran’s ex-spouse could remain an original co-signer or co-borrower on an existing VA loan that was opened before the divorce.

“Divorce does not create VA eligibility for a civilian ex-spouse. Therefore, they cannot originate a new VA loan on their own,” Shirshikov says. “After a divorce, the VA loan benefits tied to an existing loan generally remain tied up until the loan is paid off, refinanced without VA backing, or properly assumed by someone else with the original borrower’s liability removed and entitlement transferred, if eligible.”

Ex-spouses can sometimes stay in the home

After a divorce, the civilian ex-spouse may be able to remain in the home if they were a co-signer or co-borrower on the loan, per VA rules. But if the civilian former spouse wasn’t a co-signer or co-borrower, they will need to assume the existing VA loan or refinance. The civilian ex-spouse can assume the VA loan if the VA or the loan holder approves the creditworthiness of the civilian ex-spouse.

Ex-spouses could impact the VA entitlement

If the civilian ex-spouse keeps the home and assumes the VA mortgage loan, there are also VA loan entitlement issues to consider. The veteran ex-spouse won’t be able to restore their entitlement until their ex refinances the loan or pays off the existing VA loan.

“If an ex-spouse retains the property and the VA loan is still in effect, the veteran’s entitlement associated with that loan typically cannot be restored until the loan is paid in full or assumed with a proper release and substitution of entitlement,” says Shirshikov.

FAQ

Still have questions? Let’s take a closer look at some frequently asked questions about spouse requirements for a VA loan.

Does my spouse have to be on my VA loan?

As a qualified veteran or service member, your spouse doesn’t have to be on your VA loan. However, adding a spouse as a co-borrower could increase the amount you qualify for.

Does my spouse’s credit score affect my VA loan?

In many states, the lender won’t consider your spouse’s credit score if they aren’t on the loan. But if you add your spouse as a co-borrower, their credit score will affect your VA loan.

Keep in mind that the VA loan is a nonconforming loan, and while the VA doesn’t have any set minimum credit score requirements, lenders do. Rocket Mortgage^® requires clients to have at least a 580 median FICO^® Score. If your spouse has a bad credit score, adding them as a co-borrower would impact your approval chances.

Can a non-spouse be on the title on a VA loan?

Technically, a non-spouse can be on the title of a VA loan and will go through the loan underwriting process as a co-borrower with you. However, many lenders, including Rocket Mortgage, don’t accept a non-spouse as a co-borrower. That’s why you should check with your lender before adding someone else to the mortgage application.

Can a family member use my VA loan?

If you’re approved for a VA loan, you can buy a home that a parent or child will also live in, but you must occupy the property as your own primary residence. The VA won’t back loans for homes intended solely for someone else’s use. In other words, a veteran’s family members or relatives cannot get their own VA loan. Civilian family members, including spouses, can be co-borrowers on the same VA loan with an eligible veteran, but the veteran must be the primary borrower and occupy the home as their primary residence. Also, family members cannot inherit VA eligibility.

Who can be on the title with a VA loan?

When taking out a VA home loan, there are several scenarios in which another individual can be on the title. The veteran can be the sole person on the title, the veteran can be on the title with their spouse, or multiple veterans can be on a title together. A veteran and civilian can also be on the title, provided the non-military borrower paid a down payment toward their portion of the loan.

What are other available loans for military spouses?

If a veteran’s spouse doesn’t qualify for a VA loan, chances are they’re looking for their next best mortgage option. Other government-backed loans, such as U.S. Department of Agriculture (USDA) loans, offer similar benefits, like no down payment requirement, but the home must be in an eligible area. Federal Housing Administration (FHA) loans typically have more lenient requirements. A mortgage expert can help you evaluate your options and find the best fit.

Note that Rocket Mortgage^® doesn’t offer USDA loans at this time.

The bottom line: Understand spouse requirements when applying for a VA loan

Whether you are a veteran or a civilian spouse, it’s important to understand the VA loan spouse requirements, which can make a big difference in the home-buying process. If you’re ready to dive into the home search, you can apply for a VA loan with Rocket Mortgage^®.

¹Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.