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VA Home Loan With Co-Borrower

by Willard
(El Paso, Texas)

My father is a disabled Vietnam vet that does not receive monthly VA benefits but is eligible for the VA loan. He does not recieve enough money to survive so I support him and my disabled mother. Would he be able to use his VA loan on a home with me making the mortgage payments? Since I support them, it is difficult to save up the necessary funds to make up a down payment. He wants to help in any way he can and thinks he can use the loan so long as I make the mortgage payments. Is this an option?

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VA Home Loan Answers
by: Jeffrey

Thank you for asking your questions about the VA Home Loan. Based on the details you offered, I will attempt to answer the best I can.

You state your father is a disabled Vet without any monthly benefits being paid to him. I'm assuming you have pursued this to make sure he's getting all the benefits he's entitled to by the government. I'm guessing he has some type of income, perhaps social security or disability income of some sort. It appears it may not be much and would not support a mortgage so you have to help him.

The VA loan does allow co-borrowers. In most cases they have to be the spouse or another Veteran that will occupy the home. Since they really want Vets to have access to this VA Home Loan they can make an exception to this rule.

The only problem with this is the fact that VA will only guarantee the eligible borrowers part of the loan. So what this means is if your father qualified for a VA Home loan, they would insure his part. You as a co-borrower would very likely have to live in the home and qualify for a mortgage also. The zero down payment part of the VA Loan goes away and you would have to come up with about 12.5% down payment to cover the part of the mortgage not covered by the VA.

You would be reviewed by underwriting just as carefully as your father. Based on your question, you indicate coming up with a down payment is not that feasible. So I'm sorry to say that in your situation, this may not work out.

I hope this helps, thanks again for visiting my website and asking your questions.

VA Loan with Co-Borrower
by: Crystal

My husband is a 100% disabled veteran. We live in the State of Texas. He is wanting to sell our current property (of which is not a VA loan) and purchase another home using his VA benefits. My question is can he (being the primary) and our daughter purchase the property together? Will he still be exempt from paying property taxes? We all will be living in the new home and it will be considered our homestead. At this time, he is fully exempt from paying any property taxes on our current home. We've researched that if he passes before me, because the property is my homestead, the property will still be exempt from the property taxes.

What we do not know if he purchases another property with our daughter, do the same rules apply. Please let us know.
Thank you.

VA Loan with Co-Borrower
by: Jeffrey

Hello Crystal,

From what I know of VA Loans and how they work, your daughter can go on a loan with him, but it may require a larger down payment.

As far as homestead tax exemptions, it appears from my research that the tax exemption applies to a surviving spouse only.

The only provision that I can see is if the veteran were to die while on active duty and has a minor child in the homestead with the spouse. Then the tax exemption may apply to both.

This is not legal advice, its probably best if you seek a professionals opinion.

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