Child Support Payments Count as Debt for VA Loans in California

One often overlooked area when qualifying for VA financing is child support payments.  When you get a VA loan in California you must count any child support payments that you will be making for at least three more years as debt in qualifying for a VA home loan.   This can affect your debt-to-income ratios and your VA residual calculation that are part of the VA loan requirements.  There is a section on the VA loan application that asks if you pay or receive child support.   Additionally, the VA loan underwriter will ask for your divorce decree if you have dependents listed on the VA loan application and you are not listed as married.

If you receive child support payments, this can be used as income for VA loan qualification.   This can be a big positive and help you put you over the top to qualify for a VA loan in California.  To document that you receive child support or alimony, the VA loan underwriter will ask for a divorce decree + 12 mos bank statements showing you are receiving the child support consistently.   Additionally, you must be receiving the child support for at least three more years to use this income to qualify for a VA loan in California.

So if you pay or receive child support, make sure you keep in mind that this comes into play in the VA loan approval process in California.

Here are some of the latest up-to-date advantages of VA loans in California:

  • VA financing is 100% zero down financing, you do not need a down payment
  • VA 100% financing loan limits for 2011 in California go all the way to $1,000,000 in San Francisco, Alameda County, San Mateo County and many other Bay Area

    Counties.  VA loan limits go up to $700,000 in Los Angeles and Orange County and $537,500 in San Diego County.  Click here for a more complete list of recent 2011 VA loan limits http://www.socalvaloans.com/2011-california-va-loan-limits/

  • VA loan interest rates are still near 60 year lows
  • VA loan credit score does not have to be perfect to qualify
  • VA streamline refinance loans allow you to drop your VA interest rate to market rate with easy qualification

So give us a call at 858-922-7899 or email at homeloan8@gmail.com if you have a question about getting approved for a VA loan in California.

Regards,

Rob Chomentowski

858-922-7899

Sr. Loan Officer (and VA specialist)

homeloan8@gmail.com