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Income requirements for VA loan

Posted on: 13th May, 2008 08:50 pm
Looking to get va loan. Took a new job 7 months ago. I have paystubs and a job offer letter that proves my income. My partner has taken a part time job which is her first job in the last 12years . she has l;etter of employment stating her income but hasn't received a check yet. by the time we can close ona loan, she’ll have plenty of paystubs I believe. Should both of our income be used to determine dti?
Hi Phillip,

Welcome to the forum.

Before going for the loan you should think on "do you have sufficient income for the repayment of the loan?" Now if you want to use both you and your mother's income to be used to get the loan you will have to show both of your employment history. So as you get a job just 7 months ago and your mother got the job recently.

You may shop around for lenders who participate on home loan programs.

Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 13th May, 2008 10:51 pm
Hello Phillp,

The maximum debt to income ratio is 41% for a VA loan. Probably will be wise to use both you and your partner income for qualification. The more income the better your possibilities are to get a loan. Hopefully you both will have good credit because that is important. Veterans and service personnel are eligible for VA financing. This loan is attractive and has many advantages. Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981.

Together you and partner should qualify for loan if credit and income are up to par.

Good Luck,

Jeanette Smith
Mortgage Planner
Union MOrtgage Group
Posted on: 14th May, 2008 03:25 am
hi jeanette, you speak of advantages of taking VA loans. can you pls clarify what are they?
Posted on: 14th May, 2008 05:21 am
How are you Phillip,

the advantages are:

No down Payment
No Monthly Mortgage Insurance
Low interest rates
Bad credit is ok (even though you must show good payment history)
No prepayment Penalty
Va Licensed appraiser
No closing costs (seller pays)
Additional Benefit for disabled verterans

These are most of the benefits

Thanks,
Jeanette Smith
Mortgage Planner
Union MOrtgage Group
Posted on: 14th May, 2008 07:13 am
From my point of view:

It really depends on a couple factors.

1) Do you need your partners income?

2) Do you have a stable work history?

3) Is VA the right loan for you?

Botton line, using income from your partner that just got a job after 11 years might be a little more trouble than it is worth if you do not need the income for DTI. I guess another question would be,

4) What is the situation with your partners work history. Was she injured, in school, ill, ect. What caused that type of gap in work history?

VA is an excellent program although sellers do not always pay closing costs. Talk to a few lenders and explore your options.
Posted on: 14th May, 2008 03:02 pm
Thanks jeanette for the help. Seems VA loans are quite helpful.

jeff with respect to your questions:

"Do you need your partners income?"
we would both like to be on the loan and as such i think both of our incomes will be taken into account. Am I right?

"Do you have a stable work history?"
It's stable considering that there was no gap. But do you also mean a change of job field? As for my partner, she took a break in order to look after our child.

"Is VA the right loan for you?"
Hope so. but i would surely like to explore other options.
Posted on: 15th May, 2008 11:27 am
The reason for the machine gun of questions is to kind of get you set for the questions your lender will ask.

Your loan appears that it could have many risk layers although that does not mean you will not qualify.

I strongly suggest you have a sit down with a lender or two and explore options.
Posted on: 15th May, 2008 03:10 pm
Va loans were hard for me to get when I tried, I had better luck with the regular old finance company.. Found out that if you don't have really good credit and no lates fees you do not qualify.
Posted on: 16th May, 2008 07:12 pm
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