VA loans

VA Loan Myths: A Reader Question About “VA Student Loans”

July 7, 2014

VA Loan Myths: A Reader Question About “VA Student Loans”

034-logoA reader asks, “My father has pass away can me and my daughter use a veteran loan to go to college or buy a home?”

Presumably the father mentioned in this reader question was a veteran and the dependent daughter is asking about the availability of VA benefits for her and her child. Unfortunately this is one of the prevailing myths about VA home loans–that the home loan benefit can be passed to a dependent.

Only qualifying military members and their spouses (under the right circumstances) can use VA home loan benefits. They cannot be passed on to a dependent child or grandchild.

VA loans are only for home purchases, refinancing a mortgage loan or related purposes. There are no VA loans for education. Some borrowers mistake GI Bill benefits available to eligible military members for VA home loan benefits–this is understandable since it’s easy to think of VA benefits in a big package rather than the individual programs they really are.

The GI Bill program is not administered by the same people as the VA home loan program–these are two separate administrations that handle their own paperwork and processing. The GI Bill program does have features that permit use of the GI Bill by dependents under the right circumstances, but it’s best to contact the Department of Veterans Affairs directly for assistance with such benefits to see whether your circumstances qualify.

VA loans require the participation of the veteran, and dependent use of GI Bill benefits also may require the veteran to sign off on documents approving the use of certain GI Bill monies for a dependent.

Contact the Department of Veterans Affairs directly at 1-800 827-1000 to discuss these issues and learn what options may be open to you in your circumstances.

Do you have questions about VA home loans or refinance loans? Ask us in the comments section.

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