VA Loans With Dependent Children: A Reader Question
A reader asks, “I have my VA Loan eligibility certificate. I have never used my VA Loan. Can I use the VA Loan with my son?”
VA loan rules allow a veteran and spouse to be obligated on the VA loan together, but for all other non-veterans who would apply with the veteran for a VA loan there is something called a VA Joint Loan. What’s the difference?
The veteran and spouse apply together for full VA loan entitlement and guaranty. The VA Joint Loan allows a veteran and non-veterans to apply for a VA loan together, but the VA only guarantees the veteran’s portion of the mortgage. The VA loan funding fee is paid proportionally, meaning the non-veterans are not charged the funding fee, and the veteran only pays a funding fee based on the percentage of the mortgage he or she is responsible for.
VA Joint Loans require the borrowers to financially qualify–no one borrower can make up for the credit shortcomings of another, and the veteran cannot assume a disproportionate share of the responsibility for the mortgage loan. But the VA Joint Loan is a good way to help borrowers who want to apply together for a home loan and use the VA benefit where appropriate.
A veteran who purchases a home with no other co-borrowers CAN allow the dependent child to fulfill the VA occupancy requirement in the borrower’s place (assuming that certain requirements are met) so if the issue is one of occupancy, having the dependent on the loan may not be required.
In these cases, it’s best to discuss the specific circumstances of the loan and your needs with a loan officer to see what the best option might be. You can also call the VA directly at 1-800 827-1000 for more information.
Do you have questions about VA home loans? Ask us in the comments section.