This can be an attractive option for those who have served in the military, and it's also a great opportunity for those who want to purchase a home with a non-veteran. While not all lenders will offer a VA loan to a non-veteran, there are still some options that could be beneficial. Here, we'll take a closer look at buying a house with a VA loan when you have a non-veteran co-borrower.
The first thing to consider when looking into getting a VA loan with a non-veteran is the eligibility requirements for the loan. All borrowers must meet certain criteria set by the Department of Veterans Affairs in order to receive a VA loan. Both the borrower and co-borrower must have a credit score of at least 620, and they must also have a stable source of income. The VA also requires that both borrowers have the ability to repay the loan, which may require additional documentation.
It’s important to note that non-veterans cannot use a VA loan to purchase a home on their own. Instead, they must have a veteran co-borrower in order to qualify. However, if the veteran is the primary borrower on the loan, the non-veteran can be listed as a secondary borrower. This means that the veteran will have full access to the VA benefits offered through the loan, while the non-veteran will not.
In addition to the standard eligibility requirements, there are also some specific rules that apply to those who want to purchase a home with a VA loan when a non-veteran is involved. For instance, both borrowers must have an occupancy plan that includes plans to reside in the home as their primary residence. The veteran must also maintain ownership of the home for at least six months after closing.
Although the VA does not specify the percentage that must be paid by each borrower, the co-borrower must still pay a certain portion of the loan. Typically, this amount ranges anywhere from 5% to 20%. This percentage will vary depending on the lender, so it’s important to shop around for the best terms.
When looking for a lender for a VA loan, it’s important to make sure that they are willing to work with non-veterans. Not all lenders are familiar with or willing to work with a non-veteran, so it’s important to research before applying. Be sure to ask about the process of applying for a loan as well as any specific requirements that a non-veteran might have to meet in order to be approved for the loan.
Overall, purchasing a home with a non-veteran and a VA loan is certainly possible. While there may be some specific steps that must be taken in order to qualify, it can be a great opportunity to take advantage of the benefits offered by VA loans. It’s important to understand the eligibility requirements and to make sure you find a lender that is willing to work with non-veterans.
Purchasing a home using a VA loan can be a great option for veterans or those looking to buy a house with a non-veteran. VA loans offer a range of advantages, such as no down payment and lower interest rates for those who have served in the military. However, not all lenders offer VA loans to non-veterans, so it’s important to research before applying for a loan. All borrowers must meet eligibility requirements such as having a credit score of at least 620 and having a stable source of income. Additionally, the veteran must be listed as the primary borrower on the loan, and the non-veteran must pay a certain percentage (usually ranging from 5% to 20%). The veteran must also maintain ownership of the home for at least six months after closing. When it comes to finding a lender, it’s important to make sure they are familiar with and willing to work with non-veterans.
In conclusion, buying a home with a VA loan and a non-veteran co-borrower is possible. Understanding the eligibility requirements and finding a lender that is willing to work with non-veterans is key to making this type of purchase. VA loans offer a number of great benefits, so they can be a great way for veterans and non-veterans alike to purchase a home.
This article was contributed on Nov 08, 2023