VA Loan for Surviving Spouses
A VA home loan is one that is designed to support servicemembers in purchasing a home and getting onto the homeownership ladder. With affordable financing options and reduced financial barriers, these loans are extended to all servicemembers who qualify based on the specific requirements of time, involvement, or discharge from the military. When servicemembers pass away, it is possible for surviving spouses to seek the same benefits and gain support in purchasing a home, as well. Qualifying for a VA loan for surviving spouses is possible if spouses meet the qualifying requirements set by the Department of Veterans Affairs (VA).
- Surviving spouses of eligible service members may be able to qualify for a VA loan with no private mortgage insurance (PMI).
- Eligibility is dependent on the service member’s circumstances at death and/or the spouse’s current marital status.
- VA loans offer competitive interest rates compared to conventional loans.
- A Certificate of Eligibility (COE) is required to apply for a VA loan.
The Department of Veterans Affairs has clear requirements to ensure the requirements are met and that appropriate benefits are accessible by the people who need them most. Here’s more on VA home loan eligibility and what you need to show to qualify for a Certificate of Eligibility (COE).
Home Loan Eligibility Requirements for Surviving Spouses
Buying your first home can be an exciting experience, but if you’re hoping to use a VA loan and your spouse has passed away, you may not be sure if you qualify for the same kinds of loans as you did in the past. To get a VA-backed home loan as a surviving spouse, you’re going to need a Certificate of Eligibility. Then, you need to show the COE to your lender to prove that you qualify.
To qualify for a VA-backed home loan as a surviving spouse, at least one of the following must apply:
- The veteran is missing in action (MIA) or a prisoner of war (POW).
- The veteran died while in service, or from a service-connected disability, and you have not remarried.
- You remarried, but only after the age of 57 and after December 16, 2003.
- The veteran was totally disabled and was receiving, or entitled to receive, compensation at the time of death, even if the disability was not the cause of death.
If you can show that one of these things is true, then you’ll be able to seek a VA loan and your COE. Your COE will show lenders that you do qualify and have a right to pursue a VA loan rather than only conventional loans in today’s lending market.
How To Apply for a VA Loan as a Surviving Spouse
To apply for a VA loan as a surviving spouse, you first need to obtain a COE to show that you do qualify based on the VA’s requirements. After that, the steps will vary based on the type of loan you want and the lender you intend to work with. Usually, the lender will review a VA appraisal of the home, your credit information, and your income when determining if they’ll accept your loan application. Some lenders may set other requirements, which they can discuss with you when you approach them about taking out a VA loan with your COE.
To prepare to apply for a VA loan:
- Gather required documentation: You will need to collect several pieces of information for the loan application process. These include the following:
- Veteran’s death certificate: This confirms your eligibility for a VA loan related to the cause of death.
- Marriage certificate: This verifies your status as the veteran’s spouse.
- Proof of service-connected death or disability: This proof supports your claim for benefits.
- Military service records (DD Form 214): This form confirms the veteran’s service history.
- Get the COE: This document proves to lenders that you qualify for a VA loan. You can apply online through the VA’s eBenefits portal, through the postal service, or with the help of a VA-approved lender.
- Choose a VA-approved lender: Only lenders approved by the VA can process VA loans, so you’ll need to verify that the lender you want to work with is VA-approved.
- Complete the loan application: You will submit all the forms and documents you’ve collected to the lender for review.
Do Surviving Spouses Need a Certificate of Eligibility?
Yes, surviving spouses do need to have a COE to seek a VA loan. This certificate proves that you have the right to use a VA loan and qualifies you for special rates and financial benefits. You can request a VA home loan COE through the VA’s website.
Benefits of a VA Loan for Surviving Spouses
There are several benefits of getting a VA loan as a surviving spouse. VA surviving spouse benefits, like a VA loan, help you save money. VA loans:
- Don’t require a down payment (although some lenders may require one)
- Have competitive interest rates compared to conventional loan rates
- Often have flexible credit requirements, which is beneficial if you have a low credit score or little credit history
- Don’t require private mortgage insurance if you put down less than 20% of the cost of the loan
With these benefits, you can save money with lower monthly payments and less interest, which gives you an easier opportunity to build equity in your home.
Frequently Asked Questions for Surviving Spouses
Have questions about getting a VA loan as a surviving spouse? Here are some of the most frequent concerns and answers to help you on your way.
Can a Surviving Spouse Use a VA Loan for a Second Home?
VA loans are meant to be used for primary residences. The VA does offer refinancing options, though, if you’re looking to save money or have improved flexibility to purchase a second home with a different kind of loan.
Does the Surviving Spouse Need To Have a Good Credit Score?
The VA doesn’t set a minimum credit score that you have to have to get a loan. However, lenders typically have their own requirements that you’ll need to meet.
Can a Surviving Spouse Apply for a VA Loan if They’ve Remarried?
If you remarry after the age of 57 or after December 16, 2003, then it is possible to apply for a VA loan if you have remarried.
Are Other Family Members Eligible for VA Loans?
No. Only the qualified surviving spouses of veterans who have passed away are eligible to use this benefit. Other relatives, including children, aren’t eligible to seek a loan.
Take Advantage of VA Loan Benefits Today
If you’re a surviving spouse of a veteran and would like to seek a VA loan, your first step is to ensure you’re eligible and seek a COE. Once you have a COE in hand, you can begin to take the steps to get a loan from a lender and purchase the home you’ve been dreaming of. Veterans Guide is here to provide you with guidance and resources to help you navigate the application process and obtain the benefits that you may be entitled to. Contact Veterans Guide for support from a team that can help you every step of the way.
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