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VA Loan Cosigner Requirements

One of the benefits of VA loans is that they allow veterans to secure home loans with lower interest rates and lower qualifications than a traditional loan. Even with these lower qualifications, however, VA loan applicants sometimes still need a co-signer to qualify. If you fall into this category, it’s a good idea to understand who can co-sign on your VA loan and how it might affect your odds of qualifying for that loan. Fortunately, Reliance Mortgage Service Inc, is well-equipped to answer any of your VA loan co-signer questions.

Individuals who can co-sign on VA loans include:

  • Your spouse (must be legally married)
  • A single military member (if you are unmarried)
  • Certain lenders will also allow a single non-military person

In short, it’s perfectly normal for a VA loan borrower to need a co-signer to qualify for a loan. If this describes you, the more you know about who can co-sign for you and how it will affect your loan, the more of a head start you’ll have in the process. 

Since the VA loan co-signer application process can sometimes be a daunting one, we have provided below two of the most frequently asked questions regarding the use of co-signers on VA loans.

Who Is An Eligible Co-Signer?

VA guidelines clearly specify who veterans can use as co-signers on VA loans and who they can’t. First, the VA permits legally married spouses to co-sign on a loan. Those veterans who are unmarried can get a fellow veteran who is unmarried to co-sign on their VA loan. A third option, which is only available through some lenders, allows veterans to use an unmarried, non-military individual as their co-signer, but this comes with a catch: the VA will consider only the veteran’s property in what they can “guarantee,” not the co-signer’s. In other words, using this option can limit how much you qualify for. Since not every lender will allow this third option, if you find yourself in this category, we strongly recommend that you find out if your lender handles this situation before you begin the loan application process. 

Will A Co-Signer Affect My Chances Of Getting The Loan?

Co-signers can often make the difference in securing a VA loan or not. Just as your financial information and credit history is taken into account when determining if you qualify and what rates you’ll receive, your co-signer's information must also be scrutinized. How will the VA look at your and your co-signer’s information? For one thing, VA loans don’t rely on high credit scores to determine eligibility. Instead, they look at your and your co-signer's most recent 12 months of credit history, while being less strict about credit scores, bankruptcies, and foreclosures.  

If you find yourself needing a co-signer to qualify for a VA loan, know that the ability to include a co-signer has allowed thousands of veterans in you area to secure a VA loan. Fortunately, now that you know who can and cannot act as your co-signer – whether your legal spouse, a fellow unmarried veteran or an approved unmarried non-veteran – you can avoid unfortunate surprises and get a head start on identifying who your co-signer will be. 

Posted by Anne James on June 25th, 2019 1:41 PM

VA Loans: Are they a Seller's concern or old Fish Story passed down from Realtor-to-Realtor? Listen up, homeowners and Realtors alike! VA Offers and loans are more likely to close successfully and on time than any other offer, save 'All Cash.' Here are 5 Reasons VA Loans are the Best Loan for both Veteran and Seller:
1) Sellers do NOT have to pay points, closing costs (the termite report and repairs being only exception ) or other fees. Rates are so low on VA loans compared to Conventional and FHA; it's easier for the Veteran to qualify! There's no Mortgage Insurance on VA Loans either.
2) There's NO downpayment (zero down to $636,150 loan amount- and low downpayment up to $1 Million), The Debt Ratio  is allowed to go up to 59% versus 49.99% on conventional and 54.99% on FHA. No Reserves are required.
3) Lenders love VA loans as Realtors don't have to ask for closing costs in a tight seller's market - the rate is so low that closing costs can be covered by a slightly higher interest rate and many Veterans get into homes for less than $1,000 .
4) Credit Scores are relaxed with no higher rate for 670 FICO and down to 600 FICO's are accepted. Reliance Mortgage Service will work with Veterans who have credit derogatories always and bring them up to lender requirements or higher. Try us.
5) Veterans can use their VA Entitlement more than once, twice or more as long as their current VA Loan is paid off. Keeping current home as a rental? Reliance Mortgage Service will refinance your loan to conventional and usually at a much lower payment. Call us today and get an estimate on either purchase or refinance. Realtors are welcome to call with questions as well.

Posted by Anne James on September 12th, 2017 12:28 PM


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