Income Requirement Guidelines for VA

Employment verification general requirement

• Verify a minimum of 2 years employment.
• If employed by the present employer less than 2 years:
• Verify prior employment plus present employment covering a total of 2 years;
• Provide an explanation of why 2 years employment could not be verified.

The Veterans Administration Loan debt-to-income ratio is a ratio of total monthly debt payments (housing expense, installment debts, etc.) to gross monthly income.

A ratio greater than 41 percent requires: Compensating Factors

• Sizable down payment
• The existence of equity in refinancing loans
• Little or no increase in shelter expense
• Military benefits
• Satisfactory homeownership experience
• High residual income
• Low debt-to-income ratio
• Tax credits for child care
• Tax benefits of home ownership

Apply for VA Home Loan! | Jul. 31-05

VA LOAN LIMITS

Veterans Benefits Act of 2004 was signed by the President on December 10, 2004. The law changes the maximum guaranty amount of $60,000, for certain loans in excess of $144,000, to an amount equal to 25 percent of t he Freddie Mac conforming loan limit determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for a single family residence, as adjusted for the year involved..

The maximum guaranty for 2005 would be $89,912. This is for 25 percent of the 2005 Freddie Mac conforming loan limit for a single family residence of $359,650.

The maximum eligibility for each veteran is $89,912 and the maximum loan amount with no down payment is $359,650.

If you’re still renting, now is the time to take a serious look at VA home ownership. while interest rates are still at record lows.

Here are some more facts.

• $70,000 - the average homeowner’s equity.
• $50,000 - average low-income homeowner wealth in 2001.
• $7,900 avg. low-income NON HOMEOWNER wealth equity in 2001.
• An overwhelming 97% of homeowners own at least some equity in their homes.
• Among Lower income households - home equity is 80% of their entire wealth.
• For Hispanics, home equity is 63% of their entire wealth.
• For Afro-Americans - home equity is 52% of their entire wealth.

Apply for VA Home Loan! | Jul. 31-05

VA Loan Ready To Buy NOW

The Veterans Administration loan approval process is 100% dependant on documentation. To insure a smooth transaction, it is imperative that you have all of your documents gathered prior to you initial loan application, VA Income Qualifications. A list of all the documents you will need.

Apply for VA Home Loan! | Jul. 31-05

VA Loan Application

The Veterans Administration loan Online -Apply Now for VA Loan.

Apply for VA Home Loan! | Jul. 31-05

VA Eligibility Information

When you are qualifying for an VA home loan, a we will your DD214

Full Article | Jul. 31-05

Employment Information

• Most recent two years complete tax returns with all schedules
• Most recent two years W-2's, 1099's, etc.
• Most recent pay stubs covering one month period
• If Applicable: Self-Employed will need Three years Tax Returns and YTD Profit Loss Statement.

Full Article | Jul. 31-05

Information

• Most recent three months complete bank statements for any and all accounts with all pages.
• Most recent statement from retirement, 401k, mutual funds, money market, stocks, etc.
• Most recent statements from your bills, indicating minimum payments and account numbers.
• Name, Address, and Phone number of your landlord, or 12 months cancelled rent checks.
• Should you have no credit. Copies or your most recent utility bills will be needed.
• If Applicable: Copy of complete Bankruptcy and Discharge Papers.
• If you co-signed for a mortgage, car, credit card, etc, need 12 months cancelled checks. front and rear, indicating you are not making payments.
• Copy of Drivers License.
• Copy of Social Security Card.
• If Applicable: Copy of  complete Divorce, Palimony, Alimony Papers.
• If Applicable: Copy of Green Card or Work Permit.
• If Applicable: If you own another home(s) - see below

If a Refinance or you own Rental Property

• Copy of Note & Deed from current loan.
• Copy of Property Tax Bill.
• Copy of Hazard (homeowners) Insurance Policy.
• Copy of Payment Coupon or statment for current Mortgage.
• If Applicable: If property is multi-unit, need Rental Agreements.

Planning to Buy a Home? Compare REALTORS® First. It's Fast and Free! | Jul. 25-05

FREE First Time Home Buyer Reports! | Jul. 25-05