VA Co-Signer Mortgage Guidelines On VA Home Loans

VA Co-Signer Mortgage Guidelines On VA Home Loans

Gustan Cho Associates are mortgage brokers licensed in 48 states

This ARTICLE On VA Co-Signer Mortgage Guidelines On VA Home Loans Was PUBLISHED On August 25th, 2020

2020 UPDATED VA Co-Signer Mortgage Guidelines On VA Home Loans:

  • If you follow Gustan Cho Associates, you know we are experts in VA mortgage financing
  • We offer all of our VA mortgage products without LENDER OVERLAYS
  • Even during the COVID-19 coronavirus outbreak, we are able to fund VA mortgage loans without a minimum credit score requirement
  • Most lending institutions have raised their minimum credit score requirement to 620 or even 640
  • During these hard times, it can be near impossible to obtain a VA mortgage from a large bank
  • But we are here to help
  • In this blog, we will detail how to obtain a VA mortgage with a co-signer and how to apply for a VA loan with Gustan Cho Associates

In this article, we will discuss and cover VA Co-Signer Mortgage Guidelines On VA Home Loans.

Eligibility Requirements On VA Co-Signer Mortgage Guidelines On VA Home Loans

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Besides the veteran who else can go on a VA mortgage.

  • The most common VA loan is a veteran on a solo application or a veteran and their spouse on a joint application
  • A veteran and their legally married spouse are allowed to obtain 100% VA financing on the same mortgage application
  • Two veterans on the same application
  • Many veterans are married to other veterans
  • But even if not married, two veterans can be on the same mortgage application
  • Entitlement through the VA will be deducted accordingly
  • When two eligible veterans are on one application, you may use all entitlement of one veteran or split the entitlement between both veterans

Depending on your plans for the future, it may make sense to use one veteran’s entitlement and save the others for a future home purchase down the road.

VA Co-Signer Mortgage Guidelines On Non-Married Co-Borrowers
VA Co-Signer Mortgage Guidelines On Non-Married Co-Borrowers

A veteran and a non-married (non-veteran) co-applicant.

  • It is possible to add a co-borrower to a VA mortgage loan
  • However, there is not enough entitlement to obtain 100% VA financing
  • In these situations, a 12.5% down payment is required
  • This covers the missing entitlement amount for the non-veteran co-borrower
  • The US Department of Veteran Affairs will guarantee 25% of every VA mortgage loan

When a non-veteran co-applicant is on the application, that number is split in half. Meaning the down payment must cover half of the guarantee or 12.5%.

Case Scenario Of Veteran And Non-Veteran Mortgage Application


  • $200,000 purchase price with a veteran and a non-veteran co-application
  • The VA will guarantee 25% of the $200,000 or $50,000
  • BUT since the co-applicant is not a spouse, they will only guarantee half of that or 125.5% ($25,000) meaning the remaining $25,000 must be made up for with a down payment
  • It is possible to get legally married before closing to obtain 100% VA financing
  • If this is the route you choose to go, we recommend you get married as early as possible during the process
  • Obtaining a mortgage license/certificate from your local municipality can take time
  • The loan process also takes time
  • If you wait until the last second, you are more than likely to miss your closing date

An underwriter must verify a legally binding document proving you are married before issuing a clear to close for 100% VA financing. There is no way around this.

Qualifying For A VA Loan With A Lender With No Overlays

Applying for a VA loan with Gustan Cho Associates is very simple.

  • First, you will call Mike Gracz on (800) 900-8569. Mike will go over your VA qualifications during a one on one mortgage consultation
  • Assuming the phone call meets the required criteria, Mike will pair you with a licensed loan officer in your state

You will then complete an online application link which will give your loan officer permission to pull your credit and start your loan file. You will need to send in the following documentation.

  • Driver’s License or State ID
  • Last 30 Days of Pay Stubs
  • Last Two Years Tax Returns – not always required
  • Last Two Years W2 or 1099s
  • Certificate of Eligibility

From there, your loan officer will go over your specific qualifications. After your online application, you will be issued a pre-approval letter or a customized financial plan to qualify as soon as possible. We have seen every credit profile under the sun and are here to help. There is plenty of contradicting information when it comes to VA mortgage lending on the internet. Please call us directly to speak about our VA lending criteria.

VA Eligibility Requirements

A few things to consider with VA mortgage lending.

  • There is no true credit score requirement according to VA guidelines overseen by the US Department of Housing and Urban Development or HUD
  • A down payment is not required for many VA mortgage transactions
  • That being said, a veteran still needs to have funds for closing costs and RESERVES
  • The seller can pay up to 4% of the purchase price towards your closing costs
  • Most of the time, that is enough to cover all closing costs
  • If you negotiate your contract in such a way, you can buy a home with zero money out of pocket
  • Give us a call today to go over your exact scenario

Even if you have been turned down for a VA mortgage in the past, we strongly encourage you to reach out to us today. We will help answer any qualification questions you may have. VA mortgages allow for manual underwriting. We are experts in manual underwriting. We are available seven days a week and even in the evenings. If you have any mortgage-related questions, please call Mike Gracz on (800) 900-8569. If you prefer to contact us via email, send an email to

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