Can a Veteran Home Loan Have a Cosigner?

When you buy a house, you’re responsible for monthly mortgage payments until the loan is repaid in full. This is true whether you’re using a traditional mortgage or buying a house with a veteran home loan. For some borrowers, using a cosigner is a great way to reduce financial liability, especially if they’re dealing with high interest rates or trying to buy a more expensive home. If you’re using a VA loan, cosigners are an option, the process works a little differently.

Cosigners Must Be Qualified for a VA Loan

With traditional home loans, anyone can be a cosigner as long as they’re willing to take responsibility if the primary borrower defaults on the loan or misses monthly payments. However, if you’re buying a house with a veteran home loan, your co-signer must also be a qualified borrower.

This means your co-signer must be a qualified spouse or a current or former member of the armed forces. If you’re married, your spouse must be your cosigner. This helps ensure that payments will get made even if you’re deployed. If you’re single and buying a house for yourself, your cosigner can be another unmarried member of the armed forces or an unmarried veteran.

You May Not Need a Cosigner In the First Place

Most people rely on cosigners to make their loan applications more appealing to banks and traditional lenders. If the primary borrower has bad credit or low monthly income, a cosigner can boost their chances of approval. However, as a VA borrower, your credit score isn’t the main factor lenders consider.

This means you’re more likely to qualify for the loan with a low credit score than you would if you pursued a traditional mortgage. Even better, you’ll get a lower interest rate than you would with a traditional lender.

If You Choose to Use a Cosigner, Do So Carefully

Anytime you use a cosigner, the lender will consider their finances, too. You need to choose a cosigner that has a regular source of income and a good credit score to improve your chances of qualifying. Choose someone who will make your application look better than it would on its own. If you have any doubts about someone’s credit history or their income, don’t use them as a cosigner. It could end up hurting your application.