The married spouse of a military member or veteran can co-sign a VA loan. WHAT DOES THAT MEAN? In practical terms it means that if you are not married – and the other borrower is NOT a veteran, you will not be able to borrow the maximum allowable VA loan of $417,000.
Again, two unmarried military members are able to co-sign on VA loans with full benefits. When a military member or veteran wants to bring an unrelated, non-military co-signer, the VA allows this with one major exception.
The VA Mortgage Loan guarantee is limited to the amount of the veteran’s interest in the property. Some companies won’t allow these types of “mixed” loans, so you are likely better off getting an FHA loan!
There are no PMI payments with these VA loans. PMI, or Private Mortgage Insurance, is required by most Banks, and is paid on a monthly basis. USDA Home Loan and FHA mortgages (for instance) both have monthly “Default” insurance charges. With VA loans, you don’t have to pay this! In fact, the Veteran’s Administration made the Guarantee Fee for Veteran Home Loans cheaper last year! (More Information on the Rates)
For more information about qualifying for VA Loans, please click here!
If you have questions about these and other homebuying options – contact Steve and Eleanor Thorne, Government Loan Experts!
Call us at 919-649-5058 – we LOVE working with Veterans, and we APPRECIATE your service!!