Who Can Be a Co-Borrower On My VA Loan?
A co-borrower is someone who shares responsibility for the loan with you. Co-borrowers can help you qualify for a loan, but there are some things to consider before adding one to your application.
To be eligible for a VA-backed loan, your co-borrower must:
- Be 18 years or older and a spouse, unmarried partner, family member, friend, or anyone else you would like to buy a home with
- Have sufficient income to qualify
- Have an acceptable credit history
Your co-borrower does not have to be an active duty service member or veteran. If you choose to use a co-borrower, both you and your co-borrower will be jointly responsible for repaying the loan. This means that if either of you fails to make payments, the other person is still responsible for the entire loan balance. You should only add a co-borrower to your loan application if you are confident that both of you can afford the monthly payments.
Can My Spouse Be A Co-Borrower?
Yes, your spouse can be a co-borrower, regardless of whether your spouse ever served in the military.
If you are married and both spouses are veterans, then it may be to your benefit to include your spouse as a veteran co-borrower on your VA loan even if they are not currently serving in the military. There are some requirements that must be met in order for this to be possible, such as both spouses being eligible for VA benefits, both spouses being able to get a Certificate of Eligibility (COE), and both being listed on the loan application.
However, if you meet these requirements, then including your spouse as a co-borrower can help you qualify for a larger loan amount.
Can a Friend or Family Member Be a Co-Borrower?
If you have a family member or friend who is not a veteran, but would like to help you with the purchase of your home using a VA loan, they can apply to be your co-borrower.
The co-borrower must be a U.S. citizen or permanent resident alien, and meet all other credit and capacity requirements for the loan. If approved, they will be jointly responsible for repaying the loan.
Some VA lenders won’t allow this kind of VA loan and even will tell veterans that these kinds of loans are impossible. The VA loan experts at HomePromise know how to get these loans closed so please call today at 800-720-0250.
Does My Co-Borrower Need to Have Good Credit to Qualify?
If you’re looking to apply for a VA loan, you may be wondering if you and your co-borrower both need to have good credit in order to qualify. The answer is that both you and your co-borrower must have a history that meets VA guidelines. But, some VA lenders have guidelines tighter than the VA. So, finding a flexible lender that will handle a difficult credit history can be very important.
HomePromise will make VA loans with a credit score of 580. Call today at 800-720-0250 to see if you qualify.
Will a Co-Borrower Increase My Chances of Approval with a VA Loan?
If you’re looking to get a VA loan, you may be wondering if having a co-borrower will help your chances of getting approved. The answer is yes, having a co-borrower may increase your chances of getting approved for a VA loan. Having a co-borrower can help you meet the income requirements for a VA loan. Note that the co-borrower may have debts that will have to be considered which may hurt your chances of getting approved.
So if you’re looking to get a VA loan and want to improve your chances of getting approved, consider finding a co-borrower who has a good income and doesn’t have debt levels that will hurt your loan application.
How Many Co-Borrowers Are Allowed on a VA Loan?
Some lenders will restrict VA loans to only a veteran and their spouses. More flexible lenders allow additional co-borrowers. HomePromise will allow up to four total borrowers on a VA loan – the veteran, spouse, and two additional co-borrowers who may or may not be veterans.
There are some unique VA rules that have to be understood and followed when these kinds of VA loans are closed. Call the VA loan experts at 800-720-0250 to see if you qualify.
Can I Remove or Add a Co-Borrower During the Life of My Loan?
If you have a co-borrower on your VA loan and circumstances change so that you no longer want them on the loan, there are a few things you must do in order to remove them. You’ll first need to get their permission to take their name off of the loan and then refinance the loan into your name only.
This process can be complex, so it’s best to reach out to an expert VA lender like HomePromise for help. If you want to add a co-borrower during the life of your VA loan, the same process would apply. You would refinance your loan so that two borrowers would be obligated.
Does a VA Co-Borrower Have to Live in the Home?
When it comes to a VA loan with co-borrowers, there’s often a misconception that they must live on the same property as the primary borrower. However, this couldn’t be further from the truth! In fact, one of the most significant benefits of having a co-signer on your VA loan is that they don’t have to occupy the same residence.
This means that you can enlist a trusted family member or friend who doesn’t necessarily need to move in with you but still wants to help you secure better financing terms. Very few VA lenders will allow this kind of loan but HomePromise does.
Thanks to this flexibility at HomePromise, you can maximize your chances of getting approved for a VA loan while keeping your living arrangements separate and independent. So if you’re considering adding a co-borrower to your application, know that distance isn’t an obstacle – it’s an opportunity!
What Happens if My Co-Borrower Defaults on Their Portion of Payments?
If your co-borrower is making part of your monthly payment and defaults on their portion of the payments, you will still be held responsible for the entire loan.
This is why it’s so important to choose a co-borrower wisely and to make sure that you can trust them to make their payments on time.
If you’re not sure whether or not your co-borrower will be able to make their payments, it’s best to avoid taking out a loan with them.
Call the HomePromise VA loan experts at 800-720-0250 to get specific advice about your VA home lending plans.
VA Debt Consolidation Loans & Military Debt Consolidation
Even with the best of intentions, bills can start to pile up. From unexpected medical bills to high interest credit cards, debt can happen to anyone. Other expenses like college tuition, delinquent taxes, and second mortgages can also cause financial stress. For veterans and military families currently experiencing financial difficulties, VA military debt consolidation loans can help.