I was hoping I could obtain some color on a couple questions regarding VA home refinancing loan program recently enacted.
1. If I qualify for a VA refinancing loan (which I don't expect to be an issue); does the VA guarantee get reduced if there is a co-applicant (in this case my wife)?
2. When going through the Title process with a VA guarantee, is it possible to title the property in a trust versus strictly in the name of the borrowers?
Since you are married your wife's liabilities on her credit report are included in the overall debt to income ratio. So her employment might as well be too. The guarantee is for the loan and goes with the veteran or a qualifying spouse. The amount og guarantee does not go down or increase.
At closing, the loan and deed have to close in the borrowers name. You can put it in a trust afterwards,
1. Assuming you already have a VA loan and are looking to refinance that loan, this is called a VA Streamline or VA IRRRL. If so then your wife's debts and credit are NOT an issue as this does not come into play on a VA IRRRL. There is also no effect on the amt of entitlement used or guarantee by the VA.
2. The VA sets NO rules in regards to how title must be held, but most VA lenders will want the loan to close in your name and your spouses and thus they will want title vesting in your own names too. I suggest after the loan funds that you then sign a quit claim deed and change the vesting into the trust.
If you are not currently on a VA loan then the refinance is a bit more tricky but the two answers above are essentially the same in regards to guarantee and trust or vesting.
