Requirements for VA Home Loans

Members of the US Armed Forces, both active duty and retired, may qualify for VA home loan benefits. The VA does not actually issue the loan, rather it insures a portion of the loan against default. This enables veterans to qualify for a home loan that they may otherwise be unable to get. Many lenders offer zero down VA mortgage loans that make it easy for a veteran to become a home owner.

Here are some of the basic requirements to qualify for a VA home loan:

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Credit Requirements

Payment History
The VA will pay particular attention to the borrowers credit history over the past twelve months. They are looking for payments that are made on time with no recent judgements or collections. The VA is okay with borrowers having past financial difficulties, but require that a good payment history be established over the most recent twelve months.

No Credit History
Borrowers with no traditional credit history can use items like rent and utility payments to establish a record of making on time payments.

Bankruptcy
If a borrower has gone through a Chapter 7 Bankruptcy two years needs to have passed, good payment history established for 12 months, and a job with income history.
Borrowers in a Chapter 13 Bankruptcy may qualify if they have been making their payments as agreed for one year and the court trustee gives approval to proceed.

va home loanJudgements and Collections
All judgements need to be paid prior to the loan closing. The underwriter will decide which collections need to be paid. However, the borrower cannot have any Federal debt in collections.

Foreclosures
With the housing bubble and rise in foreclosures many families have lost their homes. In order to obtain a VA loan, two years needs to have passed since the foreclosure.

Credit Couseling
A veteran may qualify for a VA home loan if they have been making on time payments, with the credit counseling approved plan, for 12 months or more.
Income Requirements

41% Debt to Income Ratio
The VA wants to make sure that veterans can financially afford their housing payment and other living expenses. For that reason the VA calculates a borrowers debt to income ratio (DTI). They add up your expenses including: mortgage payment, taxes, installment debt like car loans, revolving/credit card debt, and other bills. They divide that amount by your gross monthly income (the amount you make before taxes are taken out).

For example:
Mortgage Payment $1, 500
Car Loan $ 500
Student Loan $ 120
Credit Card Payment $ 200
Total Monthly Debts $2, 320
Monthly Gross Income $6, 500

The underwriter will divide your total monthly debts ($2, 320) by your monthly gross income ($6, 500) to arrive at your debt to income ratio. In this example the DTI is 36%, well under the 41% requirement.


Advice

2005-06-15 08:36:38 by SeeDickens

You sound like you're reading my resume, the one I don't show. I started college, stopped after a year, took two years off to learn how to shoot a rifle, came back to a better school and took two years of English Dept requirements with the idea of loading up and quitting again to write myself to a better future. Wrote, writing, still writing, went back to yet another college where work paid for the classes while I was banking grant money, paid off student loans, squared up with the VA lawsuit who didn't appreciate my education schedule (one of my favorite pieces of paper in the world starts with The United States of American vs SeeDickens

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ICICI Bank inaugurates a new branch at Indirapuram, Ghaziabad  — Parda Phash
The branch will offer the entire gamut of ICICI Bank products including a comprehensive range of deposits, loans, NRI Services and locker facilities to cater to different customer profiles and needs. Speaking on the occasion Mr.

Hearings on the VA specially adapted housing grant and the eligibility requirements for VA home loans of veterans of the Vietnam era : hearing before the Subcommittee on Housing of the Committee on Veterans' Affairs, House of Representatives, Ninety-fifth Congress, second session, hearing on H.R. 10269 and H.R. 10356, February 21, 1978.
Book (U.S. Govt. Print. Off.)

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