When any borrower applies for a VA loan in California their credit will be checked and all debt obligations that show up on their credit report will factor into their debt-to-income ratios and VA income residual need to qualify for a VA loan. VA home loan requirements require VA borrowers to have a certain amount of income left over each month after paying all their debt obligations including their VA house payment. Here are some examples of debt obligations counted by VA:
- Alimony and child support
- Auto loans
- Housing payments (Mortgage + taxes + insurance)
- Student loans scheduled to begin within 12 mos of the VA home loan closing
- Credit card minimum monthly payments
- Loans secured by retirement plans do NOT need to be counted as a debt obligation for VA loan approval!
- Child care…VA home loan requirements are special in this matter as they ask VA borrowers to fill out a form detailing if child care is being used to care for young children and how much this is per month
- Any judgments appearing on your credit must be paid per VA loan requirements
- Collections over $1,000 may or may not have to be paid, this is up to the VA underwriter
Generally most items that do not show up on your credit report are not counted as debt obligations per VA loan requirements. For example, auto insurance, cell phone bills, utilities, etc… are not counted as debt obligations per VA loan guidelines.
So I hope this gives you some guidance on what debt obligations are counted to qualify for a VA loan in California. It may also help you plan on what to pay off or minimize in planning to get a VA loan to buy a home in California. If you would like to get pre-approved for a VA loan in California don’t hesitate to email me at homeloan8@gmail.com or call 858-922-7899.
Below are some of the highlights of VA financing:
- VA loans are still 100% financing zero down loans. They are the only 100% financing loans available today.
- VA loan limits for 100% financing in California go up to $1,000,000 in Bay Area counties such as San Francisco, Alameda, San Mateo and $843,750 in the San Jose area. Los Angeles and Orange County go up to $700,000 with VA loan limits and San Diego $537,500. You can go over these VA loan limits with a small amount down.
- VA loan credit does not have to be perfect. There are many cases where we can get you a VA loan with a score below 620 or work with you to quickly raise your score
- VA loan streamline refinances are still the easiest way to drop your current VA loan down to market VA interest
Regards,
Rob Chomentowski
858-922-7899
Sr. Loan Officer (and VA specialist)
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