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 Special Forces buddy of mine yesterday qualify for a VA Jumbo loan to the tune of $700K, he's now working with Cindy Jones who I referred him to because of ActiveRain. Keepin it in the family
Remember my 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 among a plethora of 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 have a dedicated VA lender and underwriter who only work with veterans.
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