Is A Surviving Spouse Va Home Loan Right For You
Qualifying for a VA loan can help you purchase your dream home, even as a surviving spouse. The many benefits attached to it make it an enticing option for those that are eligible. Contact your lender to see what you need to do to apply and qualify. It could be the right choice for your and your family.
Family Servicemembers Group Life Insurance
FSGLI is a rider to SGLI that provides life insurance coverage for a service members spouse and dependent children while the member is insured under the SGLI program.
- Coverage is automatically provided for spouses and dependent children of service members covered by the SGLI program, except in the case of service members married to service members on or after Jan. 2, 2013, who are required to fill out appropriate forms to opt into the program.
- This coverage provides up to a maximum of $100,000 of insurance coverage for a spouse, not to exceed the amount of SGLI coverage the insured member has in force.
- FSGLI also provides $10,000 for dependent children.
- The service member is the only beneficiary of the FSGLI policy.
Financial counseling services are offered to beneficiaries of SGLI, FSGLI and TSGLI.
- This cost-free service is offered by Financial Point on behalf of Veterans Affairs.
- Financial Point provides beneficiaries with valuable personalized financial information and expert consultation to ensure they have the tools necessary to manage their finances effectively. Consultants will not try to sell anything but merely provide financial advice.
- Beneficiaries have two years to request financial counseling services and another two years to use those services.
- Financial Point can be reached at 888-243-7351 or via email at
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Va Loan Surviving Spouse Home Loan
Surviving military spouses of a service member are entitled to their spouses va home loan benefit. Military spouses may be eligible for a VA loan or possible refinance loan. The VA calls these loans Surviving Spouse Loans. The Veterans Administration extends VA benefits to surviving spouses of Veterans in recognition of the tremendous sacrifice a Veteran has made for his or her country. But, some VA lenders struggle to understand the rules about surviving spouses. At HomePromise, we know how to navigate the challenging approval process for VA Surviving Spouse loans.
Are Spouses Eligible For Va Benefits
Are spouses eligible for VA benefits? What kind of benefits can you enjoy being the life partner of an active, retired or deceased military service member?
In this Guide to the Top 11 VA Benefits for Spouses, Veterans and their loved ones alike will learn what it looks like for people when you are spouses eligible for VA benefits.
Moreover, Veterans and military spouses will learn how to qualify for certain benefits such as life insurance, healthcare, assistance with employment opportunities, disability benefits, and education benefits.
So, are spouses eligible for VA benefits? Follow the correct procedures, and the answer is YES!
But what if you are a spouse caring for a Veteraneven then are spouses eligible for VA benefits? The VA may offer support in addition to the benefits that Veterans deserve for themselves.
Service members also deserve benefits that can be used to take care of their families.
If you are a survivor of a service member or a Veteran, are spouses eligible for VA benefits in this case? Survivors and their families may qualify in this instance as well.
Additionally, VA provides dependent benefits such as assistance with burials as well as survivor pension and compensation.
Veterans know that their families serve right beside them in many ways. Military spouses lead lives full of surprises, sacrifices and challenges.
Let us dive a little deeper into each of the benefits mentioned above.
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Life Insurance Benefits For Surviving Spouses
As military spouses who are eligible for VA benefits for spouses, you may be able to convert your spousal insurance coverage into an individual plan with a private insurance provider within 120 days of the Veterans end of military services. And you do not need to provide evidence of good health.
If you are a spouse nominated as a beneficiary of VGLI, SGLI, TSGLI or FSGLI coverage programs, you may use VAs beneficially service for counseling and online Will preparation. This will help you avoid seeking any legal counsel and pay the hefty fee to a lawyer.
If you have insurance under VGLI and SGLI, the VA may also offer you an accelerated benefit. This allows you access to half the money limit of your insurance policy if you have a terminal illness or are diagnosed with less than nine months of life expectancy.
Whats The Process Of A Va Loan Assumption
The process of assuming a loan varies among lenders. But, here are the common steps involved:
- Find Out If The VA Loan Is Assumable Talk to the lender of the current mortgage holder and ask if the VA loan can be assumed.
- Prepare For The Cost Associated With The Loan Assumption These include the down payment, closing costs, and processing fees.
- Submit An Application The application process may vary from one lender to another. But generally speaking, you will be required to fill out an application form.
- Submit Required Documents You will be asked to submit personal financial documents so the lender can check your creditworthiness and if you can afford to assume the loan. These may include bank statements and pay stubs.
- Close and Sign Liability Release If your VA loan assumption is approved, you need to sign the final documents including the deed of trust and liability release.
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Va Home Loan Rules For Va Loan Eligibility
The VA lenders handbook, VA Pamphlet 26-7, discusses who is eligible to apply for a VA mortgage, refinance loan, construction loan, etc. The VA loan rulebook makes it clear that the VA loan benefit is specifically tied to the veteran. This is an important detail to remember when considering divorce issues between military and non-military spouses.
That does NOT mean that spouses cannot be homeowners, co-borrowers or co-signers on a VA mortgage. VA loan rules permit a legally married couple where one spouse is not a military member.
The ability to successfully apply for a VA home loan depends on the legal marriage relationship in the following ways:
- The veteran and the non-military spouse can apply for a VA loan together with full VA entitlement.
- The veteran and a military spouse may apply for a VA loan and use VA loan benefits from both military members.
- The veteran and a military spouse may apply for a VA loan using only one military members VA loan benefits.
- Certain qualifying surviving spouses of military members who died as a result of military service may apply for a VA home loan. This may also apply to spouses of those declared Missing in Action or who are declared Prisoners of War .
- The veteran and any non-qualifying military member who is not a legal spouse can apply for a VA mortgage together, but the VA will guarantee only the military members portion of the mortgage.
Whats The Maximum You Can Borrow
Theres no limit set by the VA on how much youre allowed to borrow for a home. But the VA does cap the amount of insurance provided to the lender, and most lenders limit the loan amount as a result. You can find out the limit in any U.S. county through the VA website.
The maximum loan limit varies from one lender to another, so this is another reason to shop around.
If youve already received a VA loan, the amount youre allowed to borrow with no down payment may be smaller.
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How To Apply For A Va Loan Certificate Of Eligibility
If youre looking for a VA loan Certificate of Eligibility, you can get one by applying through your eBenefits portal online or even applying through your lender.
In order to apply, you do need to provide different information, based on your current status. Veterans do need to provide a DD Form 214, and active duty service members need a signed statement of service. A statement of service should include:
- Full name
- The date you started duty
- Any lost time
- Name of the command providing the information
Different requirements may apply for National Guard or Reserve members, as well as surviving spouses. You can find more information through the VAs benefits website, or by speaking to a qualified lender.
How Can You Assume A Va Loan
If you assume a loan, youre assuming responsibility for the VA loan balance, interest rate, and the monthly mortgage payment. If you wish to proceed, you need to meet the following requirements:
- You must meet the income and credit requirements .
- You must assume all obligations related to the home loan.
- You must pay 0.5% of the loan balance .
- You must pay a processing fee, which may cost $300 or more.
Some people are exempted from paying the VA loan assumption funding fee. These include the following:
- Veterans who are entitled to receive or are receiving VA disability compensation
- Veterans who are eligible to get compensation after a pre-discharge disability rating/exam
- Surviving spouses of veterans who died from a service-related disability or in service
If youre wondering where you can find assumable VA loans, you can check your local newspaper or real estate publication. You can also check online for websites like TakeList.com and Zumption.com that showcase properties that are open for VA loan assumption.
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Student Loan Forgiveness For Military Spouses
November 6, 2020 by Emma Woods
Many people have wanted student loan forgiveness for military spouses to become a reality for a long time. Some have wished for a disabled veterans spouse student loan forgiveness.
All of it makes perfect sense. Shouldering the responsibility of raising a family by yourself while your partner doing a military service is no easy feat.
Yet, there is a long way to go before this comes true. In the meantime, here are some ways to help you with your student loans as a military spouse.
Deployment And The Mreidl Loan
The purpose of this loan is to provide for the business’s necessary expenses that cannot be provided for because the essential employee is not present in the business. The purpose of this loan is not to replace lost profits. The purpose is to cover financial obligations and replace working capital so the business can survive.
The interest rate on the MREIDL loan is 4%. The maximum term of the loan is 30 years, though that depends on individual circumstances as does the amount of the loan. The MREIDL loan usually has a maximum amount of $2 million, but exceptions may apply depending on the amount of economic injury to the business due to the active-duty call-up of the essential employee.
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What Is A Va Loan Assumption
Veterans or service members who have an existing VA home loan can pass on the debt to someone else through a process referred to as a VA loan assumption.
In a VA loan assumption, youre signing over your VA mortgage loan and the property to an eligible buyer. The assuming borrower must be financially qualified for the home loan. Under the VA Pamphlet 26-7, section 5-23, the seller who wishes to have their VA mortgage assumed must be current or brought to current once the VA loan assumption is approved.
If the VA loan was closed before March 1, 1998, it is freely assumable and doesnt require the approval of the lender. However, if the loan was closed after the said date, you have to work with a lender to start the VA loan assumption process.
The veteran seller of the VA loan and property must get a mortgage liability release from the lender. If not, the previous owner of the VA home loan will receive a negative mark on their credit report if the buyer fails to pay off the loan.
Can You Give Away Va Loan
Veterans with VA mortgages can have their VA home loan assumed by someone else, also called a VA loan assumption. If your plans, goals, or needs changed and you need to get out of a VA loan one option is to sell your home but an alternative option is an assumable mortgage, a buyer takes over the loan.
Getting Under Contract On A Home
Lean on your real estate agent when youre ready to make an offer a home. But also talk with your loan team about your closing costs and how best to address them in your offer. Every market and every transaction is different, but its possible for sellers to cover all of a VA buyers closing costs.
Once you get under contract, the clock starts ticking toward closing day. Most purchase agreements will have deadlines and contingencies to protect both buyers and sellers. VA loans typically close in 30-45 days, just like conventional loans.
The loan process ramps up for lenders once youre under contract, too.
Va Home Loan Assumptions
The Department of Veterans Affairs permits financially qualified applicants to assume a VA home loan from the original borrower. This is important for military members experiencing divorce-its important to know the following rule from VA Pamphlet 26-7:
In certain instances, a veteran may seek release from personal liability when his or her former spouse acquires the property as the outcome of divorce proceedings and the ex-spouse was jointly liable on the loan with the veteran prior to the divorce.
In other cases, the veteran, may be awarded the property and the ex-spouse may seek a release of liability.
Most VA loans today will require the participation and approval of the lender, so you will need to discuss your desires with the loan officer to see what is possible regarding VA loan assumptions as an alternative to refinancing or getting legal title to the property in some other way.
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Applying For A Va Loan
Applying for a VA loan is different from applying for a conventional mortgage, and this affects the home-buying process.
The VA recommends working with a real estate agent whos familiar with VA loans and getting prequalified with a lender before making an offer.
There are a number of steps to applying for a VA loan, including
- Obtaining a certificate of eligibility, which verifies to the lender that you meet minimum eligibility requirements.
- Comparing offers from different VA lenders to find the best interest rate and most affordable fees for you.
- Submitting a loan application and providing financial information, including pay stubs and bank statements.
- Obtaining a VA appraisal, which is ordered by the lender.
Your credit information, income and the value of the home will be reviewed, and then the lender will either approve or deny your loan. Make sure your purchase agreement has a clause called a VA option clause, which allows you to avoid financial penalties if the home doesnt appraise high enough.
When your loan is approved, the lender will choose a representative to conduct a closing, during which the money can be released and the property transferred to you.
Getting A Va Loan After Divorce
You can get a VA loan after a divorce, but keep in mind what a divorce can do to your credit, income and entitlement.
During a divorce settlement, it’s common to stop paying debt obligations. Typically, spouses may disagree on who pays what and let them fall through the cracks.
If at all possible, do not do this. It is in the best interest of you and your spouse to agree on paying debts until the divorce reaches a settlement. Otherwise, your credit may take a hit and put you below the threshold to obtain financing directly after the divorce.
Another consideration affecting affordability is your income. Alimony or child support factors into your income picture with VA lenders and may decrease your buying power. Additionally, if you counted your spouse’s income on the first loan, you won’t be able to do that with future loans.
The last piece is VA entitlement. We’ve already covered that briefly, but if the non-military spouse receives the home, your VA entitlement will be wrapped up in that home until it gets refinanced or sold.
Diminished VA entitlement doesn’t mean you can’t get a VA loan, but your $0 down buying power may be limited.
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