What happens to a VA home loan in a military divorce?

What happens to a VA home loan in a military divorce?

On Behalf of | May 6, 2021 | Military Divorce |

VA home loan mortgages in Florida are designed for veterans and active-duty members of the military who qualify based on the requirements established by the Department of Veterans Affairs. If you are a veteran, military member or spouse of a veteran or Armed Forces member, you may need to know what will happen to your VA loan if you go through a military divorce.

Can a divorced former dependent keep the house and the VA mortgage?

This is a complicated question when it comes to military divorce matters. A former spouse of a veteran or active-duty member may be able to keep the house based on state law and the language included in the mortgage contract. The mortgage contract is legally binding and will help determine whether an ex-spouse is permitted to keep the home or obligated to pay part of the mortgage. If a non-military spouse isn’t listed on the mortgage of title, the spouse would not be able to assume responsibility for the VA mortgage.

Can a former military spouse refinance a VA mortgage?

Generally, VA loan rules indicate that the same individuals who are obligated on the original mortgage must also be responsible for paying the refinance loan. This means a veteran and spouse who refinance their home will likely not have issues, assuming they are qualified for the refinance loan. However, if the veteran doesn’t apply for the refinance loan when their spouse tries to apply alone, it is not possible for the VA to guarantee the loan refinance if the spouse was not named on the first mortgage. If a couple is divorcing, VA loan and military divorce statutes indicate that the ex-spouse would not be eligible for VA home loan benefits.

For more information on your VA home loan during a military divorce, speak with a qualified family law attorney. Legal representation on your side may work to ensure that you have a greater chance at an efficient divorce.