When you apply for a VA loan in California, one major aspect of underwriting is including certain debt obligations in your debt-to-income ratios to qualify. This post will alert you to all the various debt obligations to consider when you get a VA loan in California.
- If you have child support or alimony you must indicate this on the loan application and this will be counted as a monthly debt obligation with VA lending
- Student loans must be counted unless payments are deferred for 12 or more months from the time you close on the loan
- The VA lender does NOT count loans against your IRA or 401k
- Installment debts with less than 10 months remaining do NOT need to be counted in VA loan requirements
- Loan pay advances (primarily seen on the LES statements of active military) must be counted
- And of course credit card minimum monthly payments and auto loans are counted as debt in VA loan guidelines
- Bills that do NOT appear on your credit such as utilities, cable TV, cell phone, insurance, etc… are NOT counted against you when you qualify VA loan
So those are some general items to think about before you apply for a VA loan in California. The more you can minimize these debts, the more VA loan home you can qualify for. And always give us a call or email if you have any questions or concerns.
Warmly
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
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