Surviving Spouse VA benefits

Eligibility for a VA Home Loan as a Surviving Spouse.

To qualify for a VA home loan, you must meet one of the following conditions:

1. Receiving Dependency and Indemnity Compensation (DIC):
   • You are a surviving spouse receiving DIC because the veteran:
     • Died from a service-connected disability, OR
     • Died while on active duty, active duty for training, or inactive duty training, OR
     • Had a service-connected disability rated as totally disabling for a specific period before death (10 years, 5 years from discharge, or 1 year if a former POW).
   • You must not have remarried before age 57 to maintain DIC eligibility, which is required for the home loan benefit in this case.
2. Veteran Died in Service or from Service-Connected Disability (Not Receiving DIC):
   • If you are not receiving DIC, you may still qualify if:
     • The veteran died in active service or from a service-connected disability, AND
     • You have not remarried (no age restriction applies in this case).
   • This applies even if you haven’t applied for DIC or were denied for reasons unrelated to the veteran’s cause of death.
3. Marriage Requirements:
   • You must have been legally married to the veteran, recognized by the state or jurisdiction.
   • The marriage must have lasted at least one year, OR a child was born of the marriage, OR the marriage occurred before or during the veteran’s service.

• No Private Mortgage Insurance (PMI): VA loans don’t require PMI, reducing monthly costs.
• No Down Payment: Most VA loans allow 100% financing, meaning no down payment is needed, provided you meet credit and income requirements.
• Funding Fee: A one-time VA funding fee (typically 0.5%–3.6% of the loan amount) applies, but surviving spouses receiving DIC are exempt from this fee.
• Loan Types: You can use a VA loan for:
  • Purchasing a home or condo.
  • Building a home.
  • Refinancing an existing mortgage (e.g., Interest Rate Reduction Refinance Loan).
• Credit and Income: Lenders set their own credit score and income requirements, but VA loans are generally more flexible than conventional loans. A credit score of 620 or higher is often preferred, though some lenders may accept lower scores.

Steps to Apply for a VA Home Loan

First step is to apply for financing:

1. Find a VA-Approved Lender:
   • We can help with that in the following states: CO, FL, IA, MN, ND, SD, WI.  Just click here to get your application started
   • Choose a lender experienced with VA loans (banks, credit unions, or mortgage companies).
   • Provide financial documents (e.g., income verification, bank statements, tax returns).
2. VA Certificate of Eligibility – The COE verifies your eligibility to the lender.

1. Get Preapproved:
   • Preapproval helps determine how much you can borrow and strengthens your home offer.
   • The lender will assess your credit, income, and debt-to-income ratio (typically should be below 41%).
2. Shop for a Home:
   • Work with a real estate agent familiar with VA loans.
   • The home must meet VA’s Minimum Property Requirements (MPRs), ensuring it’s safe and structurally sound.
3. Close on the Loan:
   • After the home is appraised by a VA-approved appraiser, complete the loan process with your lender.
   • Sign closing documents, and the VA guarantees a portion of the loan, reducing lender risk.

Additional Considerations

• Remarriage: If you remarry, eligibility for a VA home loan typically ends unless the remarriage occurs after age 57 and you’re still receiving DIC.
• Entitlement: Surviving spouses are granted their own VA loan entitlement, separate from the veteran’s, but it’s a one-time benefit unless the loan is paid off or the property is sold.
• Limits on Loan Amount: The VA doesn’t set a maximum loan amount, but lenders may impose limits based on your financial profile. As of 2025, the VA loan limit for most areas is approximately $766,550 for zero-down loans, though higher-cost areas may allow more.

Resources

• VA Website: Visit va.gov/housing-assistance/home-loans/surviving-spouse for forms and details.
• VA Regional Loan Center: Call 1-877-827-3702 for assistance.
• Veterans Service Organizations (VSOs): Organizations like the VFW or American Legion can help with the COE application or navigating eligibility questions.

Next Steps