VA Loan Guidelines
VA Mortgage Debt-to-Income Ratios
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
VA Loan Articles
Read About News, Updates, and Guidelines
VA loans donít always involve a single borrower. Sometimes there are situations where co-borrowers, co-signers, and joint loan applicants want to apply for a VA guaranteed mortgage loan.
Does the VA require title insurance? Some borrowers may discuss their VA loan options with a lender that does require title insurance, but is this a VA-mandated or lender required feature of VA home loans?
Many veterans and their families were affected recently by the weather across several states, and the Department of Veterans Affairs went into action to inform and assist homeowners recovering from the damage.
One not-so-commonly asked question, but an important one to answer for some borrowers, involves the length or term of a VA home loan. Unfortunately, a new purchase VA home loan cannot be issued for a term longer than 30 years.
VA policy changes state that no one is allowed to buy a home with a VA loan without promising in writing that they will take possession of the home within a reasonable period and live on the property as their primary residence.