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.
VA LOAN ARTICLES
Read About Veteran Mortgage News, Updates, and Guidelines
Which VA Refinancing Loans Require Occupancy?
If you have an existing VA home loan, you already know about the VA occupancy requirement for these loans. But some home owners are confused when it comes to these rules when it’s time to refinance the mortgage.
VA Loans for Guard/Reserve Members
Are you a member of the National Guard or are a Reservist interested in using your VA home loan benefits? Do you know what the basic eligibility requirements for using your VA loan benefits are?
VA Home Loans in Separate States?
Borrowers interested in buying a home with a new purchase VA mortgage are required to certify that they will live in the home personally and that the property is to be used for their personal occupancy.
VA Benefit Updates for Same Sex Couples and Joint Loans
This update to VA home loan rules includes a warning for same-sex married couples who may be eligible for VA mortgage loans. Since not all states recognize same-sex marriages, VA loan procedures and requirements may depend on the location of the borrower.
VA Loans For Non-Home Use?
In general, VA loan rules don’t allow for personal loans or other credit for uses other than buying a home. The VA loan program only guarantees new purchase home loans or refinancing loans.