Military spouses play an important role in the VA loan program. A spouse, whether a member of the military or not, can co-sign on a joint VA loan. In this scenario, a spouse’s credit and income are used to help qualify for the loan. And, upon signing, the spouse becomes liable for the debt.
A spouse can also satisfy the VA occupancy rule to move in within 60 days of closing if the VA-eligible member is away on duty. This is significant because no other relative, not even a parent or a child, can satisfy the occupancy requirement.
Another important role of spouses in the VA loan realm is in the absence of the service person. If a military member is serving overseas and can’t get back to sign documents for the VA loan, a spouse may be designated as Power of Attorney (POA). According to VA guidelines, a specific POA can sign all VA loan documents on a borrower’s behalf. Some lenders may have additional requirements regarding POA.
Having special privileges as a military spouse is one thing. But, the VA especially honors surviving spouses. If the spouse is widowed by a military member who died on duty or of a duty-related injury, then he or she becomes eligible for VA home loan benefits independently. Surviving spouses may also qualify for VA benefits in addition to home loans, including pensions.
For more information about the role of spouses in VA loans, speak with a VA mortgage professional.