va loan unmarried couples co-borrowing

VA Loans

VA Home Loans for Unmarried Couples: A Guide to Co-Borrowing

Buying a house is a big investment in your future, but it comes with a lot of potential financial liability. If you fail to make payments on your mortgage or have to declare bankruptcy, you risk losing the house entirely.

That’s why lenders, even those who issue VA home loans, put such a heavy emphasis on your household income levels when deciding how much they’re willing to lend you. That’s why many people choose to use a co-borrower when trying to buy a house.

So, can unmarried couples be co-borrowers when financing a home with a VA loan?

It Depends on the Co-Borrower

Unfortunately, VA home loans can only be issued to qualified veterans, current military members, and their spouses. If you are in a domestic partnership or a long-term relationship but aren’t married according to your state’s laws, your partner will only be able to be a co-borrower if they’re a qualified veteran or current servicemember.

If they’re not, you’ll have to be the sole borrower on the loan. However, if your partner is a qualified veteran, you can pool your resources and qualify for a better loan.

What to Do if You’re Not Married

If you’re not married but really want a co-borrower on the loan, you’ll need to look at different financing options beyond VA home loans. If you’re buying your first house, an FHA loan can help you lock in a low interest rate and give you flexible down payment requirements. If you’re planning on buying a home in a rural area, a USDA loan may be a good fit.

If any of the government subsidized loans aren’t great options, you’ll need to look at conventional mortgages through your preferred lender, bank, or credit union. These loans are the most flexible and allow unmarried couples to be co-borrowers without a problem. However, the qualification requirements are strict and you may have trouble qualifying for a low interest rate if your credit scores aren’t high.

Need Help Finding the Best Loan?

Though VA home loans are great options for qualified borrowers, they’re not ideal at all times. The best thing you can do is to explore your options and look at different loan types before you start applying. Reach out to Mortgage Solutions Financial today and discuss your concerns with our experienced team. We’ll help you find the best loan for your needs whether you’re using a co-borrower or applying on your own.