You may be in the market for a VA Loan, but have discovered that you need a co-signer. Questions may be popping up such as: Who is eligible to be my co-signer? Does having a co-signer affect my chances of getting a better loan? Am I eligible for a larger loan based on my co-signer? The process of applying for a loan with a co-signer can be confusing, which is why it is important to know exactly what you can and can't do, as well as who can do it with you.
The only person eligible to be a co-signer on a VA loan is a spouse. While conventional loans allow for any blood relatives to act as a co-signer, VA Loans make it a little more difficult for a person to have a co-signer. As a result of this, lenders usually help with conventional financing to help someone out who does not have a spouse, but who is in need of a co-signer. Also, if two members of the military are unmarried, but want to be co-signers on a loan, they are also eligible. It may be more difficult to find a lender willing to provide a loan to two unmarried members of the military, so it is recommended that you do some research about your lenders before speaking to them regarding your loan.
It is also important to realize that all of your co-signer's information will be review just as carefully as yours. Their past financial records could be a liability to your efforts of trying to get a loan. Fortunately, unlike conventional loans, good credit scores are not essential in receiving a VA Loan. The underwriters for VA Loans just look to make sure that the past 12 months of your credit look clear. If this is the case, and your request for a loan is approved, then the VA will fully insure your loan.
The co-signer option has allowed a phenomenal number of people to receive a VA Loan. This may be the best option for you and your spouse, and could still be a viable option for you if you are not married. Don't let any opportunity to get a VA Loan go to waste!