Non-Occupying Veteran as Co-Borrower on a VA Loan

VA allows Co-borrowers on VA loans. We get some calls from people wanting to use a Veteran Co-Borrower and a VA loan to buy a home. The question might be something like, “My father is a Veteran, can he co-sign on my home with his VA loan?”. The answer is, only if he will live in the home. There are two types of people who can qualify as a co-borrower for a VA Loan:

  • Veterans. no civilians may co-borrow for a VA loan except for a spouse.  If another veteran is going to be a co-borrower they must plan on living on the property with you.
  • Spouses. Often times when a couple looks for a house together they both will put their names on the loan.  VA loan requirements with a spouse as a co-borrower is no different than other loans.

The VA would like you to know that a degree of risk is involved when purchasing a home with a co-borrower.  There are a few variables to consider when buying a house with either a spouse or a close friend which include job stability, creditworthiness and financial income. Realistically moving forward, the primary borrower and the co-borrower will both know each other’s finances and any other information that would help to make an educated decision.

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