Can an Unmarried Couple Get a VA Loan?

VA loans provide a significant benefit for eligible service members, veterans, and surviving spouses, offering favorable terms often including no down payment requirements. Unmarried couples often inquire if they can secure a VA loan together to leverage these advantages for shared homeownership. Navigating the specific regulations and requirements for joint VA loan applications involving non-married partners is important for those exploring this path.

Eligibility for Unmarried Couples

An unmarried couple can pursue a VA loan, though conditions depend on each partner’s veteran status. Eligibility is based on a veteran’s entitlement, the amount the VA guarantees to a lender. When one partner is a veteran and the other is a non-veteran, the veteran’s entitlement is utilized. The non-veteran partner can serve as a co-borrower, with their income and credit history assessed alongside the veteran’s financial profile.

In scenarios where one partner is a veteran and the other is not, the VA’s guarantee typically covers only the veteran’s portion of the loan. This arrangement often necessitates a down payment from the non-veteran co-borrower. This helps cover the portion of the loan not guaranteed by the VA due to the non-veteran’s involvement, increasing lender security. This requirement applies even if the veteran is otherwise eligible for a no-down-payment loan.

If both partners in an unmarried couple are veterans with their own VA loan eligibility, they can both utilize their individual entitlements. This combined entitlement can potentially allow for a higher loan amount and may eliminate the need for a down payment. If two or more VA-eligible borrowers apply together, and only one uses their entitlement, the VA will guarantee 25% of that portion of the loan.

For any joint VA loan application, all individuals on the loan will be held responsible for payments and share ownership of the home. Lenders will evaluate the creditworthiness and income of all co-borrowers involved in the application. This ensures that the combined financial strength of the couple supports the mortgage obligation.

Financial Considerations and Loan Structure

When an unmarried couple applies for a VA loan, the lender comprehensively assesses the financial standing of both partners. This includes a thorough review of their combined income and credit profiles. Lenders require stable income sources from both individuals to determine repayment ability.

The lender also examines the couple’s debt-to-income (DTI) ratio, which compares total monthly debt payments to gross monthly income. While the VA suggests a DTI ratio of 41% or less, a higher DTI may be acceptable with compensating factors like significant liquid assets, a strong credit history, or stable employment.

The VA funding fee is a one-time charge paid to the Department of Veterans Affairs at closing. This fee helps maintain the VA loan program. The amount varies, typically from 0.5% to 3.3% of the loan amount, depending on factors like first-time use, down payment, and loan type. If a non-veteran is a co-borrower, the funding fee calculation may be affected, as the VA only guarantees the veteran’s portion.

Unmarried couples have options for how they hold title to the property. Two common methods are joint tenancy with right of survivorship and tenants in common. In joint tenancy with right of survivorship, each owner has an equal share, and if one owner passes away, their share automatically transfers to the surviving owner(s) without going through probate.

Conversely, with tenants in common, each owner holds a distinct, often unequal, share of the property. If one owner dies, their share does not automatically transfer to the other co-owner but instead passes to their heirs. Couples should carefully consider these titling options, consulting with legal professionals to align the ownership structure with their long-term financial and estate planning goals.

Application Steps

The first step for an unmarried couple pursuing a VA loan involves the veteran partner(s) obtaining a Certificate of Eligibility (COE). This document confirms the veteran meets military service requirements. A COE can often be obtained quickly through a VA-approved lender using the Automated Certificate of Eligibility (ACE) system, or by applying online via the VA eBenefits portal. Alternatively, a request can be submitted by mail using VA Form 26-1880.

Once the COE is secured, the couple should seek a VA-approved lender experienced with joint applications involving non-veterans. The pre-approval process is a next phase, where the lender evaluates the couple’s financial readiness. During pre-approval, the lender will review income, employment history, assets, and conduct credit checks for both partners.

For pre-approval, applicants typically need to provide documents such as government-issued identification, recent pay stubs, W-2 statements or self-employment income evidence, and bank statements. The pre-approval letter specifies the estimated loan amount for which the couple may qualify, providing clarity for their home search. This letter demonstrates to sellers that the buyers have a verified capacity to secure financing.

The final stage involves submitting the full loan application, followed by underwriting and closing. During the application submission, additional documentation may be required from both individuals, including tax returns and detailed financial statements. The underwriting process involves a comprehensive review of all submitted financial information to ensure compliance with VA guidelines and lender requirements. Finally, at closing, all parties sign the necessary legal documents, and the property title is transferred, completing the home purchase.