Qualifying For Surviving Spouse Benefits Vs. Qualifying For A VA Loan
Losing a loved one is among the most challenging experiences anyone will ever face, and it can often leave you facing both emotional and financial issues. If you are the surviving spouse of a veteran, you are entitled to help in the form of various benefits from the US Department of Veteran Affairs. These benefits may include access to the VA mortgage loan program.
To receive a VA loan, you'll need to pass two separate hurdles: qualifying for benefits with the VA and qualifying for your loan with a lender.
Qualifying for Surviving Spouse VA Benefits
In general, qualifying for this benefit requires that your spouse died while in active service or that the government currently classifies them as missing in action or as a prisoner of war. While these general categories cover most eligibility situations, there may be some exceptions involving disabilities. For example, if your spouse died from a service-related disability after discharge, you may still be eligible.
The process of applying for a VA loan can be slightly more complicated when doing so as a surviving spouse. You will need to apply for a certificate of eligibility with the Department of Veteran Affairs before working with a lender. This documentation proves to the lender that you meet all requirements to begin the loan approval process.
Note that the VA does not limit your survivor's benefits to your first home purchase. If you previously used a VA loan to purchase a home with your spouse before they died, you can still use your survivor's benefits when moving to a new one. You generally cannot use these loans for secondary or rental properties, however.
Qualifying for Your Loan
Receiving your certificate of eligibility guarantees these benefits, but it does not necessarily entitle you to a mortgage. Although VA loans come with many advantages, you must still qualify for the loan itself. Requirements for your loan will vary from lender to lender, but they typically include a credit check and some form of income verification.
Lenders tend to be somewhat more lenient since VA loans are government-backed, however. You'll likely still need to meet a minimum credit requirement, but some lenders may have very low cutoffs. Additionally, you'll need to be able to pass the standard income and employment verification process that you would expect with any other mortgage.
Since the VA works with many private lenders, you should feel free to shop around for the best loan terms. Some lenders may specialize in working with lower-income applicants or those with a poor credit history, so it's worth seeking these banks out if this describes your situation. Whatever the case, qualifying for a VA loan can be a significant step towards homeownership for many surviving spouses.
For more information, contact an agent to help with a VA loans financing service.
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