VA Loan Requirements For Filing 2010 Tax Returns

To apply for a VA loan if you are self employed or an independent contractor getting paid 1099, VA loan guidelines require your last two years of tax returns for income calculation to qualify for a VA financing.    So if you think you will need your income from your 2010 tax returns to qualify for a VA loan, it is best to file your returns as soon as possible.  Filing as soon as possible is important because when a VA lender processes your VA loan application, they will pull your tax transcripts from the last two years from the IRS to verify your income.  And there is a delay of 2-4 weeks from when you electronically file your tax return until the VA lender is able to pull the transcript of that return.

VA loan requirements calculate income for self employed or independent contractors by averaging the NET income from the last two years of tax returns.  This is the NET income after tax deductions, not

the GROSS income.  There are some deductions that can be added back to your income for VA loan approval such as depreciation and business use of home.

So if you had a good year in 2010 and you want to be able to use your income in 2010 to help you qualify for a VA loan, make sure you get your 2010 taxes filed as soon as your possibly can so the transcripts will be ready for the VA lender to pull.

Some advantages of VA loans in California:

  • VA financing is a 100% zero down loan.  It is the only 100% financing loan available today
  • VA loan limits in California go up to $1 million in the San Francisco and San Jose area, $697,000 in Los Angeles and Orange County and $537,750 in San Diego.  You can go above these limits by putting down 25% of the difference between the purchase price and VA loan limit in your county
  • VA loans are assumable, therefore if you want to sell in the future and rates are high, you will be able to offer your low rate to be assumed
  • The VA loan interest rate is still hovering around 60 year lows
  • VA financing allows borrowers to qualify for VA loans only two years after foreclosure, bankruptcy and short sales

Don’t hesitate to email me at or call at 858-922-7899 if you would like to be approved for a VA loan in California.


Rob Chomentowski

Sr. Loan Officer (and VA home loan specialist)