VA home loans for surviving spouses

Who may qualify

VA's surviving spouse page lists the situations in which you may be able to get a COE as the spouse of a veteran. At least one must be true:

• The veteran is missing in action.
• The veteran is a prisoner of war.
• The veteran died while in service or from a service-connected disability, and you did not remarry.
• The veteran died while in service or from a service-connected disability, and you did not remarry before age 57 or before December 16, 2003.
• The veteran had been totally disabled and then died, though the disability may not have been the cause of death, in certain situations.

VA's main eligibility page also notes you may qualify if you are eligible for or receiving certain types of Dependency and Indemnity Compensation, known as DIC, or if you are the spouse of an active-duty service member who is missing in action or a prisoner of war.

How remarriage is treated

Remarriage is where most confusion lies. VA's page and its note on timing can be read this way:

• If you have not remarried, remarriage is not an issue.
• If you remarried on or after your 57th birthday and on or after December 16, 2003, eligibility can continue.
• If you remarried on or after age 57 but before December 16, 2003, you had to apply by December 15, 2004. VA says it must deny applications received after that date from this group.

If your situation is unusual, such as a marriage that later ended, ask VA directly. The regional loan center can review your records.

Which forms to file

The path depends on whether you already receive DIC.

If you receive DIC: complete VA Form 26-1817, Request for Determination of Loan Guaranty Eligibility for Unmarried Surviving Spouses. Include the veteran's DD214 or other separation papers if you have them. You can give the form to your lender to process online, or mail it to the VA regional loan center for your state, listed on the form.

If you do not receive DIC: first file VA Form 21P-534EZ, the application for DIC, survivors pension and accrued benefits. VA asks for the veteran's DD214 if available, a copy of your marriage license and the veteran's death certificate, sent to the Pension Intake Center address on VA's page. That application decides both DIC and your path to home loan eligibility.

The funding fee

Most VA borrowers pay a one-time funding fee. VA's funding fee page lists exemptions, and one of them is for borrowers receiving Dependency and Indemnity Compensation as the surviving spouse of a veteran. On a $300,000 first-use loan with no down payment, the fee would otherwise be 2.15%, or $6,450, so the exemption is significant. Make sure your COE shows the exemption and that your Loan Estimate does not include the fee.

What the COE does not do

The COE proves eligibility; it does not approve a loan. VA notes you also need to meet the lender's credit and income requirements. The lender will check your credit, verify income such as DIC or survivor benefits, and VA will order an appraisal. The home must be your primary residence.

Ask how the lender counts nontaxable income such as DIC, and bring award letters that show the amount and that it will continue.

Getting help

Losing a spouse often brings a pile of paperwork. A VA regional loan center can answer eligibility questions, and a HUD-approved housing counselor can help you budget for owning on a changed income. Take time to compare lenders; the benefit is the same everywhere, but rates and fees are not.

The bottom line

Many surviving spouses of veterans who died in service or from a service-connected disability, or whose spouse is MIA or a POW, can get their own VA home loan eligibility. Check how VA treats any remarriage, file Form 26-1817 if you receive DIC or Form 21P-534EZ if you do not, and confirm the funding fee exemption that comes with DIC.