VA Mortgage Co-Signing Explained – VA Mortgage Broker Boston

I want to thank everyone that has served and is serving in the United States Military. United States Military personnel and Veterans are some of the most generous people I know. One question I get asked is can I co-sign for a relative or friend?

Before I answer the question, it is important to understand that the VA does not provide loans — they guarantee the loans for 25% loss. The banks are willing to provide the loans, because the potential loss on a loan is minimized by the loan guarantee.

The VA technically does allow co-signors. However, the VA reduces the loan guarantee to the lender from 25% to 12.5%. Without the loan being guaranteed, the lender cannot provide the loan without assuming all the risk. You will find a magical unicorn before you find a lender that will provide a VA home loan with a 12.5% guarantee.

If you have any questions about VA home loans, please call me to discuss.

Phil Ganz (117 Posts)

Philip D. Ganz is a Boston Mortgage Broker and Boston Home Loan specialist. For information, expertise, consulting, or advice about home loans, refinancing mortgages, or commercial property loans, contact Phil with no obligation: 617-529-9317

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