can a girlfriend be on title on a va loan

The Ins and Outs of Adding a Girlfriend to the Title of a VA Loan

Buying a home with your girlfriend can be an exciting next step in your relationship Sharing the financial responsibility of homeownership strengthens your commitment and provides a space to grow closer together. However, adding your girlfriend to the title of your VA loan comes with some caveats you should understand before moving forward In this comprehensive guide, we’ll walk through everything you need to know about including a girlfriend on the title for a VA home loan.

What is a VA Loan?

First, let’s quickly review what a VA loan is VA loans are mortgage loans guaranteed by the Department of Veterans Affairs that allow eligible military members, veterans, reservists, and certain surviving spouses to purchase a home with no down payment.

The VA doesn’t actually provide the loan funds – they just guarantee a portion of the loan amount to the lender protecting them from losses if the borrower defaults. This VA guarantee is what allows VA loans to offer such favorable terms like zero down and low interest rates.

Who is Eligible for a VA Loan?

To be eligible for a VA home loan, you must meet one of the following criteria:

• Currently serving on active duty or recently separated

• A member of the Reserves or National Guard

• A surviving spouse of a service member who died in the line of duty

In addition to meeting the above service requirements, you’ll also need to show you have adequate income and credit to qualify for the loan. The VA has minimum credit score and debt-to-income requirements borrowers must meet.

If you meet the above VA loan eligibility criteria, you can purchase a home to live in as your primary residence with 100% financing through the VA home loan program. These loans can only be used to buy a primary residence – they cannot be used for investment properties.

Adding a Girlfriend to the Title

Now that you understand the basics of VA loans, let’s look at how adding your girlfriend to the title works.

The general rule is that the VA allows the following people to be on the title and loan for a VA-backed mortgage:

• The veteran
• The veteran and their spouse
• Two unmarried veterans jointly

Since girlfriends typically don’t fit into any of those categories, many borrowers assume they can’t add their girlfriend to the title of their VA loan. However, that is not necessarily the case.

The VA does allow for non-spouse co-borrowers, including girlfriends, but with a few stipulations:

• The VA will only guarantee the veteran’s portion of the loan. They won’t guarantee any amount borrowed by the girlfriend.

• Because the VA guarantee will only cover half the loan, most lenders will require at least a 10% down payment on a VA loan with a non-spouse co-borrower.

• The girlfriend must be added to the title and the mortgage. She has equal ownership interest and responsibility for making payments.

• The girlfriend will need to fully qualify for her half of the mortgage based on her own income, assets, and credit.

As you can see, the VA provides a path for non-spouse girlfriends to be on the title, but it comes with more stringent requirements. You’ll need to have cash on hand for a down payment and your girlfriend will go through the full underwriting process just as you do.

Challenges of Adding a Girlfriend to Title

In addition to the extra requirements, there are a few other potential challenges to be aware of when adding a girlfriend to the title:

• Many lenders have overlays stricter than VA requirements and don’t allow non-spouse co-borrowers at all. So you may have limited lender options.

• Underwriters will look closely at both incomes to ensure you can afford the mortgage together. Unequal incomes could make qualifying difficult.

• Any change in your relationship status down the road can complicate ownership and the loan.

You’ll need to weigh these factors when deciding if your girlfriend should be on the mortgage and title. There are benefits, like easier qualification with two incomes and shared ownership. But there are also risks, like coming up with a larger down payment and qualifying based on her financial profile.

Alternatives to Adding Girlfriend to Title

If you decide putting your girlfriend officially on the mortgage and title isn’t the right move, you still have a few options:

Use her income to qualify – Even if your girlfriend isn’t on the loan, lenders can consider her income when approving you, as long as you have a history of shared residency. Her income boosts your debt-to-income ratio.

Add her later – After closing on the home yourself, you can look into adding your girlfriend to the title down the road. This avoids the more rigid qualifying at time of purchase but gives her ownership rights in the future.

Rent to her – You keep the home titled in your name only but charge your girlfriend rent to live there. You maintain full ownership control.

These three options allow your girlfriend to live with you while avoiding some of the hurdles of making her a co-borrower from the start.

Our Recommendation – Wait Until Marriage

Ultimately, our recommendation would be to wait until marriage to add your girlfriend to the title of your home. Here are a few reasons why:

• Her income can still help you qualify without being an owner.

• No risk of complications if you end the relationship.

• You may be able to refinance into both names later.

• Marital protections and rights don’t apply to unmarried couples.

Owning a home is a big commitment and entangling finances with an unmarried partner has risks. We suggest waiting until you tie the knot to add your girlfriend to the title. You can still buy the home now together, but maintain sole ownership until you get married.

The VA allows girlfriends and other non-spouses to be co-borrowers, but there are good reasons to think hard before going that route. Teamwork and commitment with your girlfriend is great, but title commitments can get complicated without the legal marital contract. Take some time to consider all your options before deciding if purchasing a home with your girlfriend is the right choice.

• Girlfriends can be on a VA loan, but it requires a down payment and full underwriting of her finances.

• Many lenders don’t allow non-spouse co-borrowers at all.

• Her income can still help you qualify even if she’s not on the loan.

• Consider risks of shared ownership if you break up.

• Marital rights don’t apply to unmarried couples.

• Our advice is wait until marriage to add her to title.