children veterans va mortgage loan

VA Loans

Can Children of Veterans Apply for VA Mortgage Loans?

The benefits of VA mortgage loans are typically reserved for active military members and veterans. In special circumstances, such as those involving the loss of a loved one during active duty, a spouse may be able to obtain a VA home loan. But what about children of veterans? Can you apply for a VA mortgage loan if one of your parents served in the military? Here’s what you need to know.


VA Mortgage Loan Eligibility

Generally speaking, VA loans are reserved for:

  • Active military members and veterans
  • Surviving spouses that meet VA loan requirements
  • Qualifying individuals who serve as members of certain organizations such as the Coast Guard, Public Health Service, National Oceanic & Atmospheric Administration, etc.


 Are Children of Veterans Eligible for a VA Home Loan?

At this point in time, children of veterans do not meet the eligibility requirements for VA home loans. Children can make the home their primary residence, but they cannot obtain a VA mortgage. The only person that may possibly be eligible is a surviving spouse, so long as they meet the necessary requirements.

The good news is, there’s a work-around for this situation. But it will only work in certain circumstances. Instead of applying for a VA loan outright, the child of a veteran may be able to take over an existing mortgage. This is called a VA loan assumption.


VA Loan Assumptions

You do not need to be a Veteran or active military member to assume a VA loan. Anyone can assume someone else’s mortgage loan, so long as:

  • The lender allows assumptions
  • The loan is current on payments
  • The new buyer qualifies under the VA’s standards for the mortgage payment and meets income and credit requirements
  • The new buyer pays the funding fee and agrees to assume all mortgage obligations


There is one small caveat to this situation. Unless the new borrower is a Veteran and is able to substitute their entitlement, then the original borrower’s entitlement will remain tied up until the loan is paid off. This could prevent them from being able to obtain another VA loan in the future and use their veteran benefits. If the assumer defaults later on, the original borrower may lose their entitlement entirely.

If the original borrower has no desire to purchase a home in the future, then this is usually not a problem. However, if they want to buy another home later on, an assumption may not be the best idea. Your mortgage provider should be able to provide some advice on this matter and point you in the right direction.


Find Out if You Qualify

Wondering if you meet VA loan eligibility requirements? Call our office today to talk to an expert about VA mortgage loans and explore your financial options.