Can You Use Your Spouse’s VA Loan Eligibility and Your Income to Qualify?
One of the many great benefits of VA loans is that they offer competitive interest rates, no down payment, and no private mortgage insurance (PMI) requirements. But what if only one spouse is a veteran or active service member—can the non-military spouse use their income to help qualify for a VA loan while taking advantage of the veteran’s VA benefits? Here’s everything you need to know, including what happens if you’re not married but want to purchase a home together.
How VA Loans Work for Married Couples
If you’re legally married and your spouse is eligible for a VA loan, you can use their VA loan entitlement while using your income to qualify for the loan. This scenario is common when one spouse is the primary earner but doesn’t have VA eligibility themselves.
Here’s how it works:
VA Eligibility Comes from the Veteran: Since VA loan benefits are tied to military service, the spouse who is a veteran or active-duty member must provide their Certificate of Eligibility (COE).
Income from Both Spouses Can Be Used: Even if only one spouse has VA loan eligibility, both spouses' incomes can be combined to meet the lender’s income requirements. Alternatively, if the non-veteran spouse is the sole or primary income earner, their income alone can be used to qualify while still utilizing the veteran’s VA loan benefits.
Both Spouses Must Be on the Loan: While only the veteran needs to be eligible, both spouses will typically need to be on the loan to use the non-veteran’s income. This also means that both names will appear on the title of the home.
What If You’re Not Married?
If you’re not married, things are a bit different. The VA loan benefit can only be extended to eligible service members and their legal spouses. Here are your options if you’re unmarried:
VA Loan with a Non-Spouse Co-Borrower: You can apply for a VA loan with a non-spouse co-borrower, but it’s important to note that the VA will only guarantee the portion of the loan tied to the eligible veteran’s share of ownership. This often results in the lender requiring a down payment to mitigate the additional risk.
Using Just the Veteran’s Income: If you’re not legally married, you can only use the veteran’s income to qualify for the VA loan unless you add the non-spouse co-borrower, as explained above.
Consider Getting Married: If marriage is already in your future plans, it might be worth considering tying the knot before purchasing a home to take full advantage of the VA loan benefits without a down payment requirement.
Key Benefits of a VA Loan for Married Couples
No Down Payment: As long as the loan amount doesn’t exceed the veteran’s entitlement limits, you can secure a home with no down payment.
No Private Mortgage Insurance (PMI): VA loans don’t require PMI, which can save you hundreds of dollars each month compared to conventional loans.
Competitive Interest Rates: VA loans often offer lower interest rates than conventional or FHA loans, making homeownership more affordable.
Final Thoughts
Yes, you can absolutely use your spouse’s VA eligibility and just your income to qualify for a VA loan if you’re legally married. This allows you to leverage the full range of VA benefits while ensuring you meet the income requirements to secure financing. If you’re not married, the process becomes more complex, and a down payment might be required unless you’re eligible in your own right.
Navigating VA loan requirements can feel overwhelming, but that’s why I’m here. As a licensed Mortgage Loan Officer, I specialize in helping families unlock the full potential of their VA benefits. If you have questions or are ready to get started, feel free to reach out!
