Joint Loans

(Lender’s Handbook, Chapter 7, Topic 1)

A joint loan refers to a loan made to a veteran and another person(s). All parties will be liable, and all will own the property.

A joint loan is a loan made to:

• **A veteran and one or more non-veterans (other than the spouse).
• **A veteran and one or more veterans (not including a spouse) who will not be using entitlement.
• A veteran and the veteran’s spouse, who is also a veteran, where both entitlements will be used.
• **A veteran and one or more other veterans (not including a spouse), all of whom will use their entitlement.

  (** Must be submitted to VA for prior approval)

Guaranty is limited to that portion of the loan allocable to the veteran’s interest in the property. Potential maximum guaranty is calculated based on the total loan amount and cannot exceed $104,250 for 2008, even if the available entitlement of the veterans involved adds up to a greater amount.

Note: For veteran/nonveteran joint loans, the LGC will contain the statement, “the amount of guaranty on this loan is limited to the veteran’s portion of the loan.”

Any person who uses entitlement on a joint loan must certify intent to personally occupy the property as his/her home.