I’m often asked by friends of mine who are veterans to help them out during the process of purchasing their home. I actually just helped a veteran here in Phoenix, Arizona with a VA Jumbo loan and we both learned something new during his lending process.
Remember fellow veterans, your VA home loan depends a lot on your Debt To Income ratio, more commonly known as DTI, and just like regular loans they determine whether or not you qualify and for how much. Take a look here at how it’s determined.
Dodd/Frank laws that came into effect in 2014 dramatically changed the lending process and landscape for the entire industry. They now require lenders to ensure borrowers the “ability to repay” a mortgage. DTI ratios and other criteria have made qualifying for a loan a lot more stringent and difficult. Gone are the days of NINJA loans…..remember those? No Income No Job/Assets?
The acceptable Debt To Income ratio for a VA loan is 41% and credit plays a huge factor. I’ve seen personally a veteran who was approved for a loan with a DTI ratio in the 60% range, however, the underwriter has to explain the reason behind approving the loan. Not to say it can’t be done.
So veterans, just because we’re entitled to a VA loan doesn’t mean we’ll be approved for one. Work with your Realtor® who probably has excellent relationships with lenders. At Semper Find My Home we work with the Belmont Group, Matt Belmont happens to be a fellow Marine Veteran who works closely with all my clients to ensure we maximize your experience and utilize your VA benefits to their fullest, he’s awesome!