How Divorce Can Affect Your VA Loan Even the best marriages can end in divorce, causing uncertainty in every part of life for couples and their children. Financial considerations also cause challenges, including the debt and the possession of your house and property. As you prepare for substantial life changes, remember that your VA loan can be affected by divorce. VA benefits are designed to help those who have served in the military. Although the income of a non-military spouse can be used during the approval process, a loan is granted based on the status of the veteran spouse. After a divorce, a non-veteran spouse has no right to receive VA benefits and cannot, therefore, independently carry the loan. As with any divorce, you and your spouse must decide what to do about your home. As part of the divorce process, the spouse with the most ability to pay the mortgage often retains the house. It’s important to remember that, if you cannot agree on how to pay your mortgage during the divorce process, the failure could negatively affect both of you in terms of your credit rating. Although a veteran spouse has the option to continue to actively participate in the repayment of the VA loan, that spouse might not want to continue paying for the home without having possession of it. In such a case, a non-veteran spouse who has possession of the home can refinance it to repay the VA loan and relieve the other spouse of any further obligation. Without considering how divorce can affect your VA loan, you can end up with late payments or a foreclosure on your credit record. To avoid such complications, do everything possible to make a satisfactory agreement with your spouse. Doing so can speed the resolution of your divorce and ensure that you can buy a home in the future. If you have any questions about how your divorce affects your VA loan, contact your lender.
Mortgage Originator Jimmy Vercellino, specializing in VA Loans, helps veterans use their VA loan benefit to their greatest advantage. For more details call us at
480-351-5904. Visit site: https://www.valoansforvets.com/va-pre-loan-faq/ The views expressed here are those of the individual author and do not necessarily represent those of First Choice Bank (NMLS #: 177877) and First Choice Loan Services Inc. (NMLS #: 210764), 7702 E. Doubletree Ranch Road, Scottsdale AZ 85258. Equal Housing Lender. www.fcloans.com/disclaimer/
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