A joint VA loan is a mortgage loan for current and former members of the United States military. VA loans can be made by banks, mortgage companies or private lenders. The VA guarantees the loan, so the lender has no risk. However, there are some requirements in order for the mortgage to be a joint VA loan.
Joint VA Loan
The VA will not make a joint loan unless the military member proves their income will cover their part of the loan. The co-borrower can be a civilian, however they do not qualify for a guarantee from the VA for their portion of the loan. The co-borrower’s income cannot be the sole source used for the loan repayment qualification.
Differences vs. a Traditional Joint Mortgage Loan
With a joint VA loan, there is usually no down payment required, while that is rarely the case with a traditional joint mortgage loan. Both borrower’s incomes can be combined to use for the mortgage repayment qualification with a traditional mortgage loan, while that is not allowed with a joint VA loan, as mentioned above. Closing costs incurred by obtaining a traditional mortgage loan will be higher than joint VA loans, because the VA limits this amount.