Installment debt with less than 10 months remaining could be excluded from the DTI calculation.
Paying off installment and revolving debt to qualify IS allowed.
The maximum debt to income ratio on a VA loan is determined by the Automated Underwriting System (AUS). The system takes into account the overall picture of your application including income stability, income source, amount down payment, cash reserves, credit scores, etc.
The general rule of thumb is that your monthly obligations should not exceed 50% of your total qualifying budget.
Loans with lower credit scores will require lower DTI.
In addition to the debt to income ratio requirements, VA also has residual income requirements. VA residual income looks at how much income is available after all monthly liabilities are accounted for. This includes federal and state tax withholdings, utilities and child care.
The required amount is based on the region the property is located in and the family size.
This overview is not all inclusive and does not include all guidelines or potential qualifying situations. Contact us or your lender for additional information that applies to your situation.
Laura Borja | Senior Mortgage Consultant | NMLS#199107
Cell: (619) 992-4061
27271 Las Ramblas ste 150 Mission Viejo CA 920691
©Laura Borja 2019 All Rights Reserved | Site Design by Lulu Bee Marketing
This website is not authorized by the New York State Department of Financial Services to accept mortgage loan applications for properties located in New York. Intended for California Consumers Only.
Ocean Lending Home Loans Inc. NMLS ID #1626788 (www.nmlsconsumeraccess.org). 27271 Las Ramblas ste 150 Mission Viejo CA 92691 (888) 508-5030. All rights reserved. This is not an offer to enter into an agreement. Information, rates, & programs are subject to change without prior notice and may not be available in all states. All products are subject to credit & property approval. Ocean Lending is not affiliated with any government agency. Licensed by the Dept of Business Oversight under the California Residential Mortgage Lending Act License # 41DBO-76602 and Finance Lenders Law Lic # 60DBO71981