Actually, FHA has a 100% program for Vets that would not be able to get VA financing due to non-occupied co borrowers or non-spousal occupied co-borrowers without VA eligibility. Most newer underwriters do not know about the program and would have to check with specific lender overlays, but it is definitely there for you!!
Call me if you ever need anything !! (858) 848-LOAN
More information in this HUD letter from 2004:
SUBJECT: Federal Housing Administration (FHA) Mortgages to United States Veterans
With an increasing number of Armed Forces personnel returning to the United States following their service overseas as well as other servicemen and women obtaining veterans status, FHA wishes to remind mortgagees of the additional financing opportunities it makes available to qualified veterans. The three percent cash investment requirement for mortgagors described in Section 203(b)(2) of the National Housing Act does not apply to borrowers who are veterans and, under certain circumstances, this veteranâ€™s preference may result in a significant reduction to the cash needed to close the mortgage.
Veterans already enjoy substantial homeownership opportunities through the Loan Guaranty programs of the Department of Veterans Affairs (VA); this FHA program supplements but does not supplant those entitlement programs. This additional mortgage financing opportunity being provided by FHA may directly benefit:
â€¢ Veterans with less than full eligibility for a VA guaranteed loan
â€¢ Veterans who are co-borrowers with someone other than a spouse
â€¢ Veterans whose eligibility is tied up until a loan that was assumed is paid off or the veteran is released from all liability