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When the VA automatic underwriter analyzes credit for a VA loan borrower, they do take into consideration the whole picture. Even if your debt-to-income ratio exceeds the maximum ratio of 41%, the VA gas a residual income guideline that can allow approval.

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VA Mortgage Debt-to-Income Ratios

VA Loan Guidelines

According to VA guidelines, borrowers and / or their spouse must qualify according to set debt ratios which are used to determine whether the borrower can reasonably be expected to meet the expenses involved with home ownership.

TOTAL FIXED PAYMENT TO EFFECTIVE INCOME

Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, homeowners' dues, etc.) and all recurring monthly revolving and installment debt (car loans, personal loans, student loans, credit cards, etc.). Then, take that amount and divide it by the gross monthly income. The maximum ratio to qualify is 41%. In the event the number exceeds the 41%, the VA has a residual income guideline which can allow approval, yet are not considered a compensating factor.

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