VA mortgage loans have always had a multitude of advantages over other loan options for military personnel. Thankfully, surviving spouses who have lost a military-employed spouse can qualify to receive very similar benefits as military personnel does. 

Here is a list of the advantages of VA loans for surviving spouses:

• As little as zero down on purchase loans up to $417,000
• VA Streamline refinancing even if ineligible for full VA loan benefits
• No monthly mortgage insurance premiums
• No VA funding fee
• Low interest rates that are nationally competitive
• No penalties for early payoff or balance reduction
• Up to 100% refinancing of appraised value

There are a few differences to what exactly surviving spouses have access to for this type of loan. Some of these differences include:

• A spouse who obtained a joint VA mortgage with a veteran prior to the death, regardless of whether the death was duty related, may be eligible for a VA Streamline refinance (the surviving spouse need not be VA-eligible).
• Qualified surviving spouses are exempt from the VA funding fee which is between .5 and 3.3%.

If the surviving spouse of military personnel has not remarried, they can access a VA loan by obtaining the following qualifications:

• Had a spouse that served in the U.S. Army, Navy, National Guard, Coast Guard, Marine Corps., or Air Force. Reservists who served at least 6 years are also eligible.
• Survived a spouse who was eligible for disability compensation at the time of death and was rated continuously totally disabled for the specified period of time.
• 10 years prior to their death or 5 years from the date of their discharge
• If your spouse was a POW, they would need to have been rated totally disabled for at least one year prior to their death.
• Survived a spouse who died in service or due to a service-related injury. Survived a spouse that was MIA (missing in action) or a POW (prisoner of war) for at least 90 days.
• Limited to one-time use of benefit.

VA mortgage loan refinances can also be used to access cash for:

• Medical bills
• Home improvements
• Other high-interest debts that could possibly be consolidated.

For more information about VA loans for surviving spouses, contact us now!