A mil-to-mil couple is a couple where both spouses are members of the armed forces. Most anybody who’s served in the armed forces is familiar with this phrase, but what is often less familiar are some of the mortgage advantages that a mil-to-mil couple has.
You can figure out some of the advantages by considering all of the benefits a veteran is entitled to and then multiplying them by two, but there are some benefits that go beyond that.
VA Home Loan Benefits for Military Couples
Using One Spouse’s VA Loan Benefit
Mil-to-mil couples can elect to have one spouse use all of his or her VA loan entitlement on the mortgage, while the other doesn’t use any of it.
This can be helpful in a few scenarios. For example, if the couple ends up defaulting on the mortgage, they still have the other spouse’s VA loan entitlement to use on another home. Additionally, in the event of a divorce, one spouse has the option to find a new home and finance it with a VA mortgage.
The spouse not using their entitlement can still be financially obligated on the loan if they co-sign on the mortgage. While this is a common and very advantageous way to utilize the dual VA loan benefits a mil-to-mil couple has, it is certainly not the only option available to them.
Combining VA Loan Benefits
Another option that the couple has is to combine their two entitlement amounts onto a single loan.
In this way, the couple can double the guarantee to get a more expensive home – or perhaps even negotiate a better interest rate. When a couple does this, the financial obligation for the mortgage is divided in half between the two spouses, and each of the spouse’s entitlement amounts are equally drawn from in order to cover the amount of the loan.
This is most advantageous when the couple is not expecting to move or purchase another home again in the foreseeable future. In this way, they can purchase a home that their family can grow in and that they can eventually retire in.
If the couple is expecting to move again, even if it’s ten years from the date of closing the first loan, they may want to consider the first option and compare how much they’ll save in the long run with each option. When doing this, it’s best to consult with a VA-approved lender who is familiar with amortization schedules (like Low VA Rates) and will be able to help you understand your options.
Combining Partial and Full Benefits
A possibility for many mil-to-mil couples is to use the remaining entitlement for one spouse and all of the entitlement for the other spouse. This option can present itself after one spouse’s entitlement has been used and something happened that required the VA to pay money on his or her behalf.
In the case that that spouse’s entitlement was only partially used up, the couple could combine what is entitlement is left with all of the other spouse’s entitlement and still have a more advantageous loan than either would have on their own.
Another situation where a couple may want to use part of one spouse’s benefits is if one of the spouses had a loan that used up some of their entitlement before they got married.
It’s important to remember that anyone who purchases a home using a VA-guaranteed loan must be intending to occupy the home as their primary residence.
There are all kinds of benefits available to mil-to-mil couples when it comes to VA loans. If you have any questions about your VA loan benefits, don’t hesitate to contact Low VA Rates. Our experts can help.