Military Children and VA Loans

VA loans–which offer exclusive benefits to service members, veterans, and their families–help make homeownership more accessible for the heroes who have served our country. But who exactly qualifies for these loans, and can military children benefit from them? 

The short answer is that military children do not qualify for VA loans unless they are eligible veterans themselves. However, that certainly doesn’t mean there aren’t options for children of service members who want to buy a home! There are options out there, and we’re here to break them down for you.

In this guide, we’ll explore what military children need to know about VA loans, including eligibility, loan transfers, and more.

Can Military Children Use a Parent’s VA Loan?

As we mentioned above, VA loans are reserved for eligible service members, veterans, and some surviving spouses–and unfortunately, children don’t fall into these categories. This means children of veterans are not automatically eligible for a VA loan unless they have served and earned their own VA loan benefits.

To qualify for a VA loan, you must meet at least one of the following criteria:

• 90 consecutive days of active-duty service during wartime
• 181 consecutive days of active-duty service during peacetime
• 90 days in the National Guard and Reserves since August 2, 1990, or 6 years in the Selected Reserve or National Guard
• Surviving spouses of service members who are missing in action, prisoners of war, or have died during active-duty service or as a result of a service-related injury

You can learn more on our eligibility page.

The good news is that while military children can’t use their parent’s VA loan entitlement, they may be able to assume a VA loan or participate in a joint VA loan under certain conditions, which we’ll cover in the next sections.

Can a VA Loan Be Transferred to a Child?

Although children of veterans do not qualify for their own VA loans, there are still options for them, including loan assumption. 

Typically, a child may assume his or her veteran parent’s VA loan when the veteran dies, although not as a direct inheritance. In this case, the loan can be transferred to the child with the same terms, meaning the interest rate and monthly payments will remain the same.

If a non-VA-eligible child assumes a VA loan from a living spouse, the veteran’s entitlement remains tied to the loan, until it is fully paid off. So, while loan assumption is possible, military children should consider how it impacts their parent's VA benefits before making a decision.

Assuming a VA loan can be a great option if the loan has a lower interest rate than current market rates. Keep in mind, though, that the child taking over the loan must meet the lender’s financial and credit requirements, as the VA does not automatically approve assumptions.

Joint VA Loans: Can a Child Co-Borrow with a Veteran Parent?

Joint VA loans are another option that makes homeownership more accessible for military children. A joint VA loan allows a veteran to co-borrow with another individual who does not have VA loan benefits–which could include the child of a veteran. 

A veteran can get a joint VA loan with their child only if the veteran’s portion of the loan is backed by the VA. Additionally, the child must meet credit and income requirements for the non-VA portion of the loan. It’s also important to note that a joint VA loan between a veteran and his or her child will result in a higher down payment or stricter approval process. This could make it a risk for eligible veterans, especially if their child does not have the strongest financial background.

As with other VA loans, any home purchased with a joint VA loan between a veteran and his or her child must serve as the primary residence for the veteran. 

In addition to eligible veterans, eligible surviving spouses can also apply for a joint VA loan with their children.

Other Benefits for Children of Veterans

Despite the fact that military children do not qualify for their own VA loans, there are many benefits available to dependents of veterans, including the following:

• Dependency and Indemnity Compensation (DIC): A monthly financial benefit for children of veterans who died in service or from a service-related condition.

• Post-9/11 GI Bill Transfer: Veterans can transfer unused education benefits to their children if they meet service requirements.
• Chapter 35 – Survivors’ and Dependents’ Educational Assistance (DEA): Provides financial assistance for college or career training for eligible children of disabled or deceased veterans.

• CHAMPVA (Civilian Health and Medical Program of the Department of Veterans Affairs): Provides healthcare coverage for children of veterans who are permanently disabled or deceased due to service-related conditions.

Although they may not directly provide assistance in homeownership, all of these benefits can help military children build financial stability–which is always a good asset for anyone hoping to purchase a home.

Learn more about these benefits and others on the VA website.

Commander Mortgage Can Help

All in all, VA loans are a powerful tool for veterans. Although military children unfortunately don’t qualify, the options available still offer promising solutions towards homeownership. 

If you're a veteran or military family exploring your VA loan options, Commander Mortgage is here to help. In fact, it’s our privilege to serve those who have served us.

Contact us today to learn more about your benefits and find the best home loan solution for your family!