VA Loan Requirement Regarding Income For California VA Loans

Here is a quick reminder of what to think about regarding your income to qualify when you apply for a VA loan.

If you get paid a W-2 salary:

We will need you last 2 years w-2′s, tax returns and paystubs
VA financing does not necessarily require you have to be on the job two years , on year can suffice in many cases
Watch out for unreimbursed business expenses, if these show up on form 2106 of your tax returns VA loan requirements require we deduct this from your income to qualify
If you get paid a bonus, VA loan guidelines require you to have 2 years history of the bonus and we will average those 2 years

If you get paid hourly:

Sometimes VA loan requirements will require we take an average of the last 12-24 months vs. taking your most recent paystub
If you get paid hourly VA loan guidelines can sometimes require a verification of employment form sent to your employer to get more details on your average hours per week

If you get paid via 1099 as an independent contractor or you are self-employed:

VA lending requires your most recent two years of tax returns and your last two years of NET income will be averaged to calculate your income for qualification.
It’s important to note VA loan guidelines go off the NET income after tax write-offs, not your GROSS
There are some deductions we are specialists at adding back to your income, call to inquire

If you get paid VA disability pay:

VA lending gives you an excellent bonus and waives the 2.15% VA funding fee if you receive VA disability pay
We can count 125% of your VA disability pay because it is not taxed

If you are retired and on fixed income:

In you receive social security income VA loan guidelines allow us in many cases to count 125% of your social security income because it is not taxed

There are many, many more forms of income not mentioned here such as child support, pension, annuities, rental income and many have special rules with VA lending. Give me a call if you have any questions about income and getting approved for a VA loan.

And here is a quick reminder in the latest updates of the benefits of VA lending in California:

If you qualify VA loan it is a 100% financing zero down loan. It is the only 100% financing mortgage loan available today. The next best is FHA with 3.5% down.
VA loan 30 year fixed interest rates are still very, very low compared to historical norms
California VA loans available with 100% financing all the way up to $600,000, $700,000 and beyond depending which county you buy in California. This allows you to buy with VA 100% financing even in coastal areas such as San Diego, Los Angeles, San Jose, San Francisco and Orange County. A VA loan over $417,000 is a jumbo VA loan.
VA loan credit scores do not have to be perfect, you just need a 600 score to qualify.
You can get a second VA loan (and 3rd, 4th, etc…) even if you have had a VA loan before, but you can only have one at a time.
VA loan benefits include a waived VA funding fee for veterans if you receive any VA disability pay. This is a savings of thousands and thousands of dollars
VA lending has NO monthly mortgage insurance. You have to put 20% down to get any other type of mortgage with no monthly mortgage insurance.

Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer (and VA specialist)

858-922-7899

homeloan8@gmail.com