Posted on: 09th Jan, 2010 12:46 pm
Hi, I am new to the site. I have an opportunity to do a VA purchase loan. The twist is the veteran and the co-borrower are not married, nor herself a veteran. I read on this site, that this can be done as long as the bank with do a joint split garantee on the loan etc. Since it is Sat. I cannot call an underwriter at one of the banks I use, (I am a broker), to make sure they will do this type of loan. Loan amount is 417,000 purchase price is 475,000. This will give us an 88% LTV...any advice or comments on any potentials problems would be appreciated... Otto
>>I read on this site, that this can be done as long as the bank with do a joint split garantee on the loan etc.
I've never heard of that - my experience has been only the Veteran will be able to qualify for the mortgage if they're not married. The VA has always been inflexible about that requirement.
I've never heard of that - my experience has been only the Veteran will be able to qualify for the mortgage if they're not married. The VA has always been inflexible about that requirement.
Thank you for your reply. I went onto the VA.gov site...and I just read this;
Q: May a veteran join with a non veteran who is not his or her spouse in obtaining a VA loan?
A: Yes, but the guaranty is based only on the veteran's portion of the loan. The guaranty cannot cover the nonveteran's part of the loan. Consult lenders to determine whether they would be willing to accept applications for joint loans of this type. Lenders that are willing to make these types of loans will likely require a down payment to cover risk on the unguaranteed, nonveteran's portion of the loan. Unlike other loans, the lender must submit joint loans to VA for approval before they are made.
Both incomes can be used to qualify for the loan. However, the veteran's income must be sufficient to repay at least that portion of the loan related to the veteran's interest in (portion of) the property and the nonveteran's income must be adequate to cover the rest.
I am going to call a few banks I deal with and see what they say. if not, I'll have to fly with the Vet only...not sure if he'll qualify alone.
Q: May a veteran join with a non veteran who is not his or her spouse in obtaining a VA loan?
A: Yes, but the guaranty is based only on the veteran's portion of the loan. The guaranty cannot cover the nonveteran's part of the loan. Consult lenders to determine whether they would be willing to accept applications for joint loans of this type. Lenders that are willing to make these types of loans will likely require a down payment to cover risk on the unguaranteed, nonveteran's portion of the loan. Unlike other loans, the lender must submit joint loans to VA for approval before they are made.
Both incomes can be used to qualify for the loan. However, the veteran's income must be sufficient to repay at least that portion of the loan related to the veteran's interest in (portion of) the property and the nonveteran's income must be adequate to cover the rest.
I am going to call a few banks I deal with and see what they say. if not, I'll have to fly with the Vet only...not sure if he'll qualify alone.
Check out Mortgagee Letter 2004-24. It's an FHA program that can be used when the co-borrower isn't a spouse, but still provides 100% financing. Here's the link:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/04-24ml.doc
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/04-24ml.doc