VA home loans are home loans backed by the Department of Veterans Affairs. If you’re a veteran, you can get a VA home loan instead of a traditional or an FHA home loan. The rates are significantly lower compared to other home loans.
Perhaps, the best part of a VA home loan is you aren’t required to have a down payment—in most cases and you don’t pay any monthly mortgage insurance premiums. This lowers the monthly payments to a degree that is a lot easy to pay, especially over time. Although the VA home loans are very attractive to many home buyers, there are a few things you should know about income requirements.
Source of Income
The very first requirement to get a VA home loan is to be a full-time worker with at least 30 hours per week. You must be verified as a full-time worker in the VA’s database.
On the other hand, if you’re self-employed, you must have a steady self-employed income you can prove for a minimum two years. Check your information with the nearest VA office to see whether you’re eligible or not.
Other than where your income is coming from, there isn’t exactly an income requirement. With that said, your income can be as low as $30,000 and as high as $500,000. However, you must have a debt to income ratio where you can make your monthly payments.
In order to determine your qualification for a VA loan, we have something called the residual income. This refers to the amount that is leftover from the borrower’s income after the mortgage payment, insurance, property taxes, tax withholdings, and revolving debt. You will state this amount to your lender and if it is seen enough, you will get the loan.
As for how much this amount is—it depends. It solely depends on the location of the borrower. For example, if you’re in California, this can be about $1,200 while it can be $400 for someone who’s in South. Since you cannot check a specific location for VA home loans, we suggest applying for a VA home loan. Given your credit score won’t get hurt, there shouldn’t be anything in your way that should shy you away from applying.