Greetings to everyone in the mortgage industry and to Veterans across the nation.
Recently, a major lender in the mortgage industry released an advertisement that presents a somewhat misleading message about a spouse’s eligibility for a VA loan. It’s important to clarify that not all spouses qualify for this benefit. To be eligible, a spouse must be classified as a Surviving Spouse under applicable laws.
The following criteria determine whether a spouse is eligible for a VA loan and legally considered a Veteran:
- An unmarried surviving spouse of a Veteran who passed away due to service or service-connected causes.
- A surviving spouse of a Veteran who died on active duty or from service-connected causes, who remarries on or after age 57 and on or after December 16, 2003.
- A spouse of an active-duty service member listed as Missing in Action (MIA) or a Prisoner of War (POW) for at least 90 days (eligibility under this provision is limited to one-time use).
- Surviving spouses of Veterans who died from non-service-connected causes may also qualify if any of the following apply:
- The Veteran was rated totally disabled for 10 or more years immediately before passing.
- The Veteran was rated totally disabled for at least five years from discharge until their passing.
- The Veteran was a former prisoner of war, passed away after September 30, 1999, and had been rated totally disabled for at least one year prior to death.
In most cases, a surviving spouse of a Veteran who died due to service-connected causes receives Dependency and Indemnity Compensation (DIC) from the Department of Veterans Affairs. However, the absence of DIC payments does not necessarily mean they are ineligible. If they do receive DIC, the VA loan application process is typically more straightforward, and they are also exempt from the VA Funding Fee.
Ensuring Accurate Information
While the lender’s advertisement may have been well-intentioned, it created confusion about eligibility. It is crucial that surviving spouses receive accurate information about their VA loan benefits. Misleading claims can cause unnecessary frustration and false expectations. If you or someone you know has questions about VA loan eligibility, please, contact Jeff Wilson, former VA Loan Guaranty Officer, at 615.293.2775.
Veterans and their families have earned these benefits through service and sacrifice. It is our duty to ensure they receive clear, honest, and reliable guidance when navigating their homeownership journey.
