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
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.
Common VA Loan Questions: Entitlement Restoration
There are specific VA loan rules which must be followed in order to accomplish the restoration of VA loan entitlement, but they don’t cover turnaround times or ways to expedite the restoration request.
VA Loans for Mobile Homes and Land Purchases
There are many people who want to know why some types of VA home loans aren't available, even though the VA loan program technically allows them.