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
compensating factor.
VA Loan Articles
Read About News, Updates, and Guidelines
Currently serving military members who want to apply for VA insured home loans should know about the rules for VA loan applicants within a year of their current re-enlistment, retirement or separation date.
The VA loan benefit is offered to all qualifying veterans who have met their time in service requirements and/or discharge requirements. Some military people use their VA home loan benefits as soon as they are eligible.
VA loans include fees and expenses a borrower is allowed to pay, but the Department of Veterans Affairs also has a list of expenses the bank is not allowed to charge the borrower.
In 2012, the Department of Veterans Affairs alters the methods used to calculate the VA loan maximum amount. If Congress passes legislation permitting VA to calculate maximum guaranty as it has in the past, the numbers below could increase slightly.
VA appraisal rules insure that a home purchased with a VA insured mortgage is safe and habitable for the borrower; the rules are also designed to make certain the property lives up to VA standards.
