To qualify for a VA loan you must have an income that supports the mortgage payment as well as all other debts. For active duty personnel your base pay, housing allowance and food allowance counts for this purpose. If you have special pays that are temporary such as hazard pay for deployed locations, this cannot be used.

Additional your spouse’s income can be use if she is applying as a co-borrower.

For the purpose of getting qualified, we increase your BAH and food allowance pay by 25%. This is done because you don’t pay taxes on these entitlements.

If you are separating from active duty within 12 months of the closing date, then you MUST prove that you will be employed and able to meet your mortgage obligations. If you are already separated or retired, then 2 months of recent pay stub activity is all that is required.

If you receive retirement pay or VA disability pay this counts as income.

To get qualified or to get answers to your questions, contact us today!

Tags: VA Loans

This entry was posted on Wednesday, August 26th, 2009 at 2:26 pm and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.