What happens if I buy a house with a non-veteran family member using VA loan?

When a veteran buys with a non-veteran, non-spouse co-borrower, the VA only guarantees the veteran's portion of the loan. This means you'll likely need a down payment for the non-veteran's share. For example, if ownership is 50/50, you may need around 12.5% down on the total purchase price.

Can I buy a house with my parents using a VA loan?

Yes, but unless your parent is also a veteran with VA entitlement, you'll need a down payment for their portion. The VA only guarantees your share of the loan. Many families find it more practical for the veteran to qualify alone if possible, or explore conventional joint financing options.

VA Loan Guide

Can I Use My VA Loan to Buy a House With a Family Member?

January 2026 7 min read

Yes, but it depends on who the family member is. You can use a VA loan with your spouse and maintain full benefits (zero down). You can also buy with another veteran. Buying with a non-veteran, non-spouse family member is possible but typically requires a down payment on their portion of the loan.

The Short Answer by Scenario

VA loan rules treat co-borrowers differently based on their relationship to you and their veteran status. Here's the quick breakdown:

Co-Borrower	Zero Down?	Notes
Spouse (veteran or not)	Yes	Full VA benefits maintained
Another veteran	Yes	Both use their entitlement
Non-veteran parent/sibling	Partial	Down payment on their share
Non-veteran unmarried partner	Partial	Down payment on their share

Let's break down each scenario so you know exactly what to expect.

Trying to figure out the best way to structure your purchase? Every family situation is different. Let's talk through your options.

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Scenario 1: Buying With Your Spouse

Veteran + Spouse (Veteran or Non-Veteran)

Zero Down

This is the most straightforward scenario. Your spouse can be on the VA loan whether they're a veteran or not, and you still get full VA benefits including zero down payment.

If both spouses are veterans, you can both use your entitlement on the same loan, but it's usually not necessary unless you're buying a higher-priced home that exceeds one person's entitlement.

Key Point Your spouse doesn't need to be on the loan at all. You can qualify solo if your income supports it.

California Community Property Note

California is a community property state. Even if your spouse isn't on the loan, their debts may still count against your debt-to-income ratio. We see this catch veterans off guard during underwriting.

Scenario 2: Buying With Another Veteran

Two Veterans (Married or Not)

Zero Down

Two veterans can combine their VA entitlements on a joint VA loan. Both veterans use their entitlement, and the loan remains 100% VA-guaranteed with zero down payment required.

This works for:

Married veteran couples
Siblings who are both veterans
Any two eligible veterans purchasing together

Key Point Both veterans use their entitlement, which affects future VA loan eligibility for each person.

Scenario 3: Buying With a Non-Veteran Family Member

Veteran + Non-Veteran Parent, Sibling, or Other

Down Payment Required

This is where it gets complicated. When a veteran buys with a non-veteran, non-spouse co-borrower, the VA only guarantees the veteran's portion of the loan.

The non-veteran's portion typically requires a down payment - usually around 12.5% of the total purchase price when splitting 50/50.

Example 50/50 ownership on $700K home = ~$87,500 down (12.5%)

Why This Matters

Many veterans want to buy a home with a parent or sibling to combine incomes and qualify for a better property. It's doable, but the down payment requirement often defeats the purpose of using a VA loan.

Alternatives to consider:

Veteran qualifies alone (if income allows) and family member contributes to payments informally
Conventional joint loan with both parties (may have better terms in some cases)
Family member provides gift funds for closing costs instead of being on the loan

Let's Find the Best Structure for Your Situation

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Scenario 4: Buying With an Unmarried Partner

Veteran + Non-Veteran Unmarried Partner

Down Payment Required

Only married spouses get the full VA benefit extension. If you're buying with an unmarried partner who isn't a veteran, they're treated the same as any other non-veteran co-borrower.

That means a down payment is required for their portion of the loan.

If Both Are Veterans Zero down is possible - both use their entitlement regardless of marital status.

Key Considerations Before Buying Together

1. Does Everyone Need to Be on the Loan?

Sometimes the best move is for the veteran to qualify alone. If your income and credit support the purchase solo, adding a co-borrower may just complicate things without adding benefit.

2. How Does This Affect Future VA Loan Use?

When you use your VA entitlement on a joint purchase, that entitlement is tied up until you sell or pay off the loan. If you're buying with another veteran, both of your entitlements are affected.

3. What About Title and Ownership?

You can structure title differently than the loan. For example, a veteran could be the only borrower but hold title jointly with a family member. This has legal and tax implications, so consult an attorney or CPA.

VA Amendatory Clause Protection

No matter how you structure the purchase, the VA Amendatory Clause protects you. Even if you waive appraisal contingency to compete with cash offers, you can still walk away if the appraisal comes in low. It's federal law.

Joint Purchases Are Complicated. I Can Help.

Let's figure out the best structure for your specific situation - veteran or not, family or not.

Call or Text (213) 262-5092