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May a veteran join with a non veteran who is not his or her spouse in obtaining a VA loan?

Published 08/03/2012 03:31 PM   |    Updated 08/03/2012 03:36 PM
May a veteran join with a non veteran who is not his or her spouse in obtaining a VA loan?
Yes, but the guaranty is based only on the veteran's portion of the loan. The guaranty cannot cover the nonveteran's part of the loan. Consult lenders to determine whether they would be willing to accept applications for joint loans of this type. Lenders that are willing to make these types of loans will likely require a down payment to cover risk on the unguaranteed, nonveteran's portion of the loan. Unlike other loans, the lender must submit joint loans to VA for approval before they are made.

Both incomes can be used to qualify for the loan. However, the veteran's income must be sufficient to repay at least that portion of the loan related to the veteran's interest in (portion of) the property and the nonveteran's income must be adequate to cover the rest.