Important VA Benefits Update For Same-Sex Couples
Change is the one constant in life, and the mortgage loan market is living proof. Just in case you missed this, VA is now treating same sex marriages similarly to traditional marriages when it comes to qualifying, at least on a case by case basis. For more information, keep reading...
The Department of Veterans Affairs has issued important updates to the VA home loan program that directly affect same-sex couples who want to apply for a VA insured mortgage loan.VA Circular 26-13-18 was issued on September 26, 2013 and provides an “interim process” for same sex couples. According to the circular, “Effective immediately, the Department of Veterans Affairs (VA) will, to the extent legally possible, begin reviewing applications for the home loan guaranty benefit for same-sex married couples in a manner consistent with processes currently used for opposite-sex married couples.”
In the short term, this provides access to same-sex couples who are eligible to apply for a VA loan together as spouses.
That means same-sex married couples would enjoy the same ability to apply for a VA loan together as other married couples where one or both are veterans or currently serve in uniform.
That’s different than previous VA policy, as the circular explains. “Previously, if a Veteran obtained a loan with anyone other than his or her opposite-sex spouse, VA could only guarantee the Veteran’s portion of the loan.”
How and why did this happen? “On September 4, 2013, the Attorney General of the United States announced that the President had directed the Executive Branch to cease enforcing statutory language in title 38, United States Code, defining a ‘spouse’ or ‘surviving spouse’ as someone of the opposite sex.”
“As a result of the President’s directive, VA and the Department of Justice are working diligently to provide comprehensive guidance on the delivery of benefits to same-sex married Veterans, including guidance for determining applicable state law when establishing the validity of a marriage.”
State laws vary greatly, hence the need for VA review of same-sex couples’ VA loan applications to determine what is permissible in any given state. According to the VA circular, “VA will now review applications for the home loan guaranty benefit submitted by married same-sex couples. On a case-by-case basis, VA will determine whether same-sex married couples can use both spouses’ incomes to qualify for a loan.”
This is a very important step forward for many military couples. VA loan applicants who have questions about how the new policy affects them should contact the Department of Veterans Affairs directly at 1-800 827-1000.
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