VA Home Loan Benefits for Surviving Spouses

What Is the VA Home Loan Program?

VA-backed home loans are provided by private lenders but guaranteed in part by the VA. This guarantee reduces the lender's risk, which often allows borrowers to purchase a home with no down payment, without private mortgage insurance, and with competitive interest rates. The program can also be used to refinance an existing mortgage or make energy-efficient improvements to a home.

Who May Be Eligible?

Surviving spouses may qualify if:

• The spouse of a service member who died in the line of duty or from a service-connected condition, and the spouse has not remarried.
• The spouse of a veteran who was rated permanently and totally disabled, and the spouse has not remarried.
• In some cases, a surviving spouse who remarried after age 57 may still be eligible.

Eligible borrowers must also meet standard lender credit and income requirements. The VA guarantee does not guarantee loan approval, it reduces the lender's risk but the borrower must still qualify financially.

How to Apply

To use the VA Home Loan benefit, you will need a Certificate of Eligibility (COE) from the VA, which confirms your entitlement. The process involves:

• Obtaining your COE through the VA website, your lender, or by mail.
• Choosing a VA-approved lender and submitting a loan application.
• Shopping for a home that meets VA appraisal standards.
• Closing on your loan once approved.

VA Home Loans vs. Private Life Insurance

The VA Home Loan benefit helps eligible survivors purchase or refinance a home. Private life insurance serves a different purpose, it provides a lump-sum death benefit to beneficiaries that can help cover mortgage payments, pay off a home loan, or support a family's ongoing living expenses after a loss. Some families use both together: a VA loan to secure housing and life insurance to protect against the loss of income used to pay that mortgage.