How Your Income Will be Analyzed When You Apply For VA Loan

Here is a quick overview of how your income will be analyzed when you apply and are qualified for a VA Loan:

Wage earners

2 year history required of income

Commission income

As the VA lender we will average your last two years of federal tax returns to count commission income.  Make sure you check your 2106 unreimbursed business expenses as these will be deducted from your qualifying income.

  Alimony and child support

This can be counted in your income for qualification.  Generally it must be continuing for the next three years and you’ll need 12 months of canceled checks or bank deposits showing receipt of this income.  A nice thing is we can use 1.25% of this income because it is not taxed.

Disability, social security, public assistance

This income can all be counted.  We just need a copy of your award letter.  We can multiply this by 1.25% as well because it is not taxed.

Retirement income

This of course can be used.  We just need a copy of your award letter.

Seasonal jobs/unemployment

This may be counted and averaged over 24 months if unemployment is considered normal for the field borrower is in.

Self-employed VA borrowers

Generally you must be self-employed for 2 years.   Your net business income will be averaged over 24 months.  VA lenders will not go off your gross income; they will go off your NET income after deductions.  There are some deductions that can be added back to your income such as depreciation.

Some highlights of VA loans today:

• VA loans allow 100% financing
• Sellers can credit you for all your closing costs
• Maximum VA loans can get all the up to above $700,000 in many areas of the nation where jumbo VA loans are possible
• VA loan streamline refinance are easy to today’s low rates
• You don’t need perfect credit with a VA loan, so if you think you have bad credit you may be able to get a VA loan
• VA loan interest rates at record lows and being held down by the government to stimulate the economy
• California VA Loans 100% to $737,000+ in many counties

Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a VA refinance loan or VA purchase loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer (and VA specialist)

858-922-7899

homeloan8@gmail.com

Tagged as: Alimony, Bank Deposits, Borrowers, Business Expenses, Business Income, Child Support, Closing Costs, Depreciation, Federal Tax Returns, Gross Income, Jumbo Loans, Loan Interest Rates, Net Income, Nice Thing, Public Assistance, Record Lows, Retirement Income, Seasonal Jobs, Va Loan Interest Rates, Wage Earners