VA Financing Considers Child Care Expenses in California

VA home loan requirements have a rule where child care expenses must be included in a VA borrower’s debt-to-income ratio and residual income calculation.  This is a unique rule that applies only to VA home loans and no other type of mortgage financing.  So when planning to get a VA loan in California child care expenses are something you must keep in mind.

The VA home loan lender will require a form for the VA borrower to fill out a form that details any child care expenses.  The VA underwriter will also check the VA borrower’s federal tax returns the last two years to check if any child care expenses were claimed as deductions on tax returns.  Even if no child care expenses are claimed by the VA borrower on the form, the VA underwriter can see them when reviewing the VA borrower’s tax return and decide to add them the expenses to the VA borrower’s loan qualification.  Child care expenses can easily amount to $500+ per month and this can have serious effects to a VA borrower’s ability to qualify for a VA loan.  That extra $500/mo could throw the VA borrower past the threshold for VA required monthly residual and cause the VA loan to be denied.  So definitely keep child care expenses in mind when planning to apply for a VA home loan in California.

If you have any further questions or would like to be approved for a VA loan in California don’t hesitate to email us

at or call at 858-922-7899.

Below are some of the very latest up-to-date VA home loan benefits in California:

  • VA home loans are still 100% financing zero down loans
  • VA loan limits in California go all the way up to $1 million with zero down in the San Francisco and San Jose areas.  VA loan limits in Los Angeles and Orange County go up to $697,000 with zero down, and $537,750 in San Diego.  You can go above these loan limits by putting down 25% of the difference between the purchase price and VA loan limit in your area.
  • VA loan credit does not have to be perfect.  You can get a VA loan with a great interest rate down to a 600 credit score
  • VA loan interest rates are still hovering around 60 year lows
  • Regards,

Rob Chomentowski


Sr. Loan Officer (and VA specialist)