VA home loans support surviving spouses in homebuying or refinancing

Few understand the dedication to service and country more than surviving spouses of veterans and service members.

The U.S. Department of Veterans Affairs (VA) home loan program is one way the country supports this shared sacrifice.

Whether you’re moving into a roomier home or downsizing into a more manageable property, as the surviving spouse of a service member or veteran, you may qualify for a variety of financing options through VA’s home loan program.

In our previous posts on this subject we noted that if you’re a veteran, service member or family member of one, VA guarantees a portion of your loan, which helps banks and other lenders provide money at a lower cost toward the purchase or refinancing of your home.

As an eligible surviving spouse, VA provides you with a home loan guaranty benefit and other housing-related programs so you can buy, build, repair, retain or adapt a home to your needs.

Tips for securing a home loan

VA loans offer favorable financing terms, including no down payment or mortgage insurance premiums. Despite the benefits, the means of obtaining one may seem daunting. To explore the real pluses of this program, review the key steps in the process:

• Check your eligibility. Before approaching a lender, you need a Certificate of Eligibility (COE). First, determine if you qualify for one. You may be able to get a COE if you’re the spouse of a veteran who:
o Is missing in action.
o Is a prisoner of war.
o Died while in service or from a service-connected disability and you didn’t remarry.
o Died while in service or from a service-connected disability and you didn’t remarry before you were 57 years old or before Dec. 16, 2003.
o Was totally disabled and then died, but the veteran’s disability may not have been the cause of death (in certain situations).

• Apply for a COE. The process depends on whether you receive Dependency and Indemnity Compensation (DIC):
1. You receive DIC benefits: Fill out a Request for Determination of Loan Guaranty Eligibility—Unmarried Surviving Spouses. Obtain a copy of your spouse’s DD-214 and other separation papers (get these online if you don’t have them). Submit these items to a lender or a VA regional loan center in your state.
2. You do not receive DIC benefits: Fill out the Application for DIC, Survivors Pension and/or Accrued Benefits form. Obtain a copy of your spouse’s DD-214, your marriage license and the veteran’s death certificate. Submit these items to a VA pension management center.

• Choose a loan. After obtaining the COE, choose a loan that fits your needs. That might include a purchase loan, a cash-out refinance loan or a rate reduction refinance loan. You should also find a private bank or mortgage company that can serve as your lender.

• Take the next steps. Once you have a lender and apply for a loan, they request a VA appraisal, or an assessment, of your home. They review the appraisal — along with your credit and income statements — before deciding to accept your loan application and moving to the next steps in the process.

Learn more

• Call a VA regional loan center at [login to see] to ask questions about COEs, VA home loan eligibility for surviving spouses, homebuying or underwriting.

• Visit http://www.va.gov/housing-assistance/home-loans/surviving-spouse.