Is a Spouse Entitled to a VA Home Loan

By Bethany Eanes

The U.S. Department of Veterans Affairs (VA) offers a guaranty service for home loans. An active military member or veteran who has been honorably discharged may be eligible for benefits including low interest rates, low down payments and no private mortgage insurance requirement. You are eligible for these benefits if you are a surviving spouse of a person who died on active duty or as a result of service-related disabilities.

As a military member or veteran, you are eligible for a number of benefits from the VA, including the home loan guaranty program. With this program, any eligible service member with an income and qualifying credit can receive a loan with as little as 3.5 percent down and no private mortgage insurance requirement. The credit restrictions on a VA loan take into account the financial factors affecting veterans' credit, meaning the requirements may be less strict than those on conventional loans.

As a spouse, your husband or wife who is serving or did serve is the one eligible for the loan. However, if that person dies in action or as a result of a service-related disability, you inherit the VA benefits in many areas. One of those areas is with the VA home loan. You become the person applying for the loan, and your spouse's military qualifications are transferred to you. If your spouse died as a result of a service-related disability, that disability must have been documented in your spouse's VA records prior to the death.

To apply for VA benefits as a spouse, first determine your eligibility with the VA. Use VA form 26-1880 to apply for your certification of eligibility. You will need your spouse's military identification information or VA records in order to apply. You will also need to supply proof of income and a credit report. If you do not have any income, you will not be able to pay for a mortgage, so you cannot qualify. However, military benefits from your deceased spouse count as income.

If you qualify for a VA loan, you will receive many benefits in the home lending process. Your loan may be less costly than a conventional loan, and you may be able to purchase a home even on a low to moderate income. Another benefit is the option to refinance through the VA in the future, keeping your costs low for the life of the loan. Many military service members have credit complications after long deployments, but the VA's assistance can help overcome these challenges.

http://www.lenderva.com