Surviving spouses, this tip of the week is for you. More surviving spouses reconsider VA loans thanks to extended eligibility. Surviving spouses make the ultimate sacrifice for our freedom. VA home loan benefits are just one way to say Thank YOU!
Beverly’s husband passed away last month after a long battle with cancer. He was disabled as a result of military service, but his death was not service-related. Now that she’s alone, Beverly wants to downsize her home. New surviving spouse eligibility makes it possible for Beverly to get a zero-down VA loan of her own.
Military widows and widowers may be eligible for VA home loan benefits if:
- Spouse died as a result of serving in the military, or
- Spouse died of a service-connected disability, or
- Spouse died of any cause, was continuously rated totally disabled for a period of time determined by the VA and was eligible for disability compensation at the time of death
To qualify, the veteran must have been eligible for VA disability pay at time of death and continuously rated totally disabled for:
- 10 or more years prior to death, or
- 5 or more year from date of discharge, or
- 1 or more years prior to death after 9/30/99 for POWs
VA home loan benefits are still generally for surviving military spouses who have not remarried.
So, why are VA loans such a great deal for surviving spouses? It’s possible to get these government-backed mortgages with no down payment up to $417,000. And surviving spouses never pay the VA funding fee. This can save spouses more than $4,000 on a $200,000 loan. Other VA loans benefits include:
- $0 Down Option on Purchases up to $417,000
- 100% Loan to Value on Refinances May Be Possible
- No Monthly Mortgage Insurance Premiums
- Low Interest Rates that are Nationally Competitive
- No Penalties for Early Payoff or Principal Reduction
- VA Streamline Refinancing (for surviving spouses with or without VA loan benefits)
Surviving spouses who may not have been eligible in the past may now qualify with new eligibility requirements. If you have questions about this topic, post a comment below. Or, get in touch with an approved lender.