Assuming a VA Loan After Death

If you’re the surviving spouse of an active service member or veteran, you can qualify for VA home loan benefits to assume a VA loan after the death of your spouse. You’ll simply need to obtain a Certificate of Eligibility (COE) from the VA to begin the loan application process. This document proves to your mortgage company that the VA has approved you for a certain amount of home purchasing funds. Keep in mind you’ll also need to meet your individual lender’s credit and income requirements.

However, first thing’s first: Notify your lending institution of your spouse’s passing, so your bank is aware of the situation. It’s also a good idea to explain to your lender when and how you will continue payments if your spouse’s passing impacts you financially. Then you can begin the process of assuming a VA loan after the death of a military loved one. Here are some resources to get you started.

Qualifying for a Certificate of Eligibility (COE)

For you to qualify for a COE, your spouse must have met one of the following requirements:

• Your spouse passed during his or her service.
• Your spouse passed from a service-connected disability.
• Your spouse suffered a total disability because of a service-related incident.

Additionally, if your loved one’s service-related disabilities didn’t cause his or her death, you may still qualify for a COE.

How VA home loans work with DIC benefits

Also known as Dependency and Indemnity Compensation, DIC benefits are tax-free monetary aid for the surviving spouse of a service member who died in the line of duty or from a service-related injury or illness.

Before you can receive a COE, you’ll first need to apply for DIC benefits through your state’s VA pension management center. In addition to a DIC application form, you’ll need to submit additional documentation:

• The veteran’s DD214—a document identifying the veteran’s condition of discharge
• A copy of your marriage license
• The veteran’s death certificate

If you currently have DIC benefits, you must submit a Request for Determination of Loan Guaranty Eligibility as well as the veteran’s DD214 to your lender or your state’s VA regional loan center.

Working with your loan officer

During this process, your loan officer will likely request a VA home appraisal to determine your property’s current market value. We may also review additional information:

• Credit score and history
• Current income
• Debt-to-income ratio
• Current employment

These VA loan benefits can also apply to spouses of service members who are missing in action or prisoners of war. However, your spouse has to have been a POW or missing in action for at least 90 days for you to qualify.

OVM Financial wants to serve those who served our country. That includes those who supported our military from home. Start your application online, or reach out to one of our trusted experts, so we can help make this trying time a bit easier. You can also find more information on our website, including articles about VA home loans in Texas and how a child of a veteran can get a VA loan.