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
The Truth About VA Appraisals
The VA Lender’s Handbook has a wealth of information about VA appraisals and the appraisal process. In it, you’ll find an entire chapter dedicated to appraisals and the rules that guide them.
Owning Other Property While Applying for VA Mortgage
Borrowers should know that in cases where the debt-to-income ratio approaches 40% or higher, there may be difficulty with VA loan approval without compensating factors such as substantial cash reserves, a down payment, or other factors.
VA Loan Benefits for the Spouse Alone?
In general, VA loan rules that cover VA loan eligibility for a new purchase have specific guidelines for active duty, members of the Guard and Reserve, as well as regulations that address VA loan eligibility for military spouses in two separate categories
VA Loan Funding Fee Rules for Second-Time Use
The amount of your VA loan funding fee (at the time of this writing) is calculated depending on a variety of factors: how much down payment is made on the VA loan, whether the borrower is or was active duty, Guard or Reserve.
The Rules for VA Joint Loans
There are VA loan rules for loans involving both spouses, more than one veteran borrower, and even loans where the mortgage is shared between a veteran and non-veteran.