Can I buy a home with a VA loan together with someone who isn't my spouse, like a parent or a friend?

Question

Accepted Answer

Short answer: yes, this is called a joint loan, but VA's guaranty only covers your share, so expect a down payment on the rest. VA treats these loans differently depending on who you're buying with. Two veterans buying together can each apply their own entitlement to the purchase. Both portions get VA's guaranty, and depending on how much entitlement each of you has, no down payment may be needed at all. A veteran and a non-veteran spouse buying together are treated like a single-borrower VA loan. No extra down payment is required just because your spouse is a co-borrower. A veteran and a non-veteran who isn't your spouse, say a parent, a friend, or a business partner, can also get a VA loan together. VA's guaranty applies only to your portion, so the lender will typically ask for a down payment on the part of the loan backed by your co-borrower instead of VA. You still have to occupy the home as your primary residence for the loan to qualify as a VA loan. A co-borrower who also plans to live there as an owner is a different scenario than one who's just helping you qualify. Lenders underwrite the whole household on a joint loan, so a co-borrower's credit and debts affect your approval odds and your rate, not just your own. Gene can look at a specific co-borrower setup with you and explain what it would mean for your down payment and entitlement before you write an offer.