What Are Joint Loans?
When two or more veterans seek a VA loan additional rules and guidelines apply. This video explains the basics.
Official VA guidelines state that “strengths of one veteran related to income and/or assets may compensate for weaknesses of the other.” BUT…
“satisfactory credit of one veteran cannot compensate for poor credit of the other.”
When one of the borrowers is NOT a veteran the guidelines are slightly different. In that case the income of the veteran has to be sufficient to repay their portion of the loan.
Income strength of the non-veteran spouse cannot compensate for income weakness of the veteran in determining eligibility.
Finally, for joint loans where any party besides the veteran and/or their spouse will hold title to the property VA review is required.
The VA Lender’s Handbook – VA Pamphlet 26-7 – has more details.