VA Loan Rules For Siblings, Dependent Children: A Reader Question
We get many questions along these lines–can a family member use the veteran’s VA home loan benefit? The short answer is no–siblings and dependent children cannot use the VA loan benefit. One possible reason for the confusion about VA home loan benefits may come from the ability to transfer certain other benefits to a dependent child or spouse.
For example, GI Bill benefits do, under the right program, permit the veteran to transfer the education benefits to a child or spouse. According to the VA official site, “The transferability option under the Post-9/11 GI Bill allows Servicemembers to transfer all or some unused benefits to their spouse or dependent children. The Department of Defense (DoD) determines whether or not you can transfer benefits to your family. Once the DoD approves benefits for transfer, the new beneficiaries apply for them at VA.”
That information is found in the section of the VA official site titled, “Transfer Post-9/11 GI Bill to Spouse and Dependents”. However, that is ONLY for the GI Bill program and there is no equivalent for VA loans.
VA loan rules do not permit the children or siblings of veterans or currently serving military members to use the VA loan benefit. Essentially, the VA loan benefit is intended for the veteran and a spouse, where applicable, who want to purchase a home. The benefit is not transferable.
Surviving spouses of military members may, under qualifying circumstances, be able to use the spouse’s VA loan benefit after the veteran’s death, but these transactions are regulated and require approval on a case-by case basis.
Do you have questions about VA home loans or refinance loans? Ask us in the comments section.