Can I Qualify For VA Loan With High DTI
This BLOG On Can I Qualify For VA Loan With High DTI Was Written By Gustan Cho NMLS 873293
Can I Qualify For VA Loan With High DTI? The answer is yes to the question Can I Qualify For VA Loan With High DTI. The Department of Veteran Affairs has one of the most lenient mortgage guidelines out of all mortgage loan programs. The United States of Department Affairs realizes that members of the U.S Armed Services has lower credit stores than civilian workers due to them having the chances of being deployed in wartime. How can a veteran make timely monthly payments on their debt obligations when they are deployed during wartime and make their monthly mortgage payments on time when they are in combat. The Armed Services are well aware of this and have implemented much more different VA Guidelines for veterans of the armed services.
Can I Qualify For VA Loan With High DTI & How Do I?
Can I Qualify For VA Loan With High DTI? VA Loans are the best residential mortgage loan programs out there. However, not all borrowers qualify for a VA Loans. Only veterans of the United States Armed Services with a Certificate of Eligibility can qualify for a VA Loan.
Here are the requirements to qualify for VA mortgage loans:
- To qualify for VA Loans, the borrower needs to have served in a branch of the United States Military and have a honorable discharge and a valid Certificate of Eligibility. A Certificate of Eligibility is also referred to as a COE.
- There is no debt to income ratio requirements with a VA Loan. However, VA Loan does have VA Residual Income Requirements.
- The Gustan Cho Team at CrossCountry Mortgage does not have any lender overlays on VA Loans. One of our loan officers at The Gustan Cho Team at CrossCountry Mortgage recently closed a VA Loan for a borrower who had a 580 FICO credit score and a 59% debt to income ratio and outstanding collection accounts.
- Only spouses of a Veteran can become co-borrowers on VA Loans.
- You do not have to pay off outstanding collections and charge offs to qualify for VA Loans.
- There is a two year waiting period to qualify for a VA Loan after a Chapter 7 Bankruptcy discharged date.
- There is a two year waiting period to qualify for a VA Loan after a foreclosure, deed in lieu of foreclosure, and short sale.
- Deferred student loans that are deferred for more than 12 months are exempt from debt to income ratio calculations.
- VA does not require any down payment on a home purchase and allows 100% financing.
- VA allows up to 100% cash out refinance on single family homes.
- VA home buyers do not have to worry about coming up with closing costs because VA allows up to 4% sellers concessions from home sellers and/or lender credit by the lender to cover closing costs.
- There are no annual VA mortgage insurance premium with VA Loans.
- There are funding fee with VA Loans, however, the one time funding fee can be rolled into the balance of the VA Loan.
- VA Loans has one of the lowest mortgage interest rates out of any loan program because of the guarantee by the Veterans Administration.
- VA Loans are for one to four unit owner occupied properties only. You cannot use your VA entitlement on second homes or investment homes.
- The Gustan Cho Team at CrossCountry Mortgage closes VA Loans in 21 days or less.
Qualifying For VA Loan With High DTI
Many of you who are reading this blog are probably scratching their heads and really confused because many of you were told the following:
- Maximum debt to income ratio you can have to qualify for a VA Loan is 41% DTI to 43% DTI.
- Minimum credit score to qualify for a VA Loan is 640 FICO.
- You cannot have any outstanding collection accounts and/or charge off accounts to qualify for VA Loans.
- You need a minimum of three credit tradelines to qualify for VA Loans.
All of the above VA lending requirements are not those of the VA but are lender overlays. Lenders can have their own lender overlays on VA Loans and do not have to follow VA Guidelines. Lenders do have to meet minimum VA Guidelines but they can have higher standards and requirements than VA Guidelines. If you meet VA Lending Guidelines but the lender you consulted with has VA Lender Overlays, stop looking further and call Gustan Cho at 262-878-1965 or text Gustan Cho on his cell at 262-716-8151. You can also email Gustan Cho at firstname.lastname@example.org. The Gustan Cho Team at CrossCountry Mortgage does not have any lender overlays on VA Loans. The Gustan Cho Team at CrossCountry Mortgage is available 7 days a week, evenings, weekends, and holidays.