Understanding VA Loans

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs, offering benefits like no down payment and no PMI.

Eligibility: Active duty, veterans, or surviving spouses with a Certificate of Eligibility (COE). ?
Funding Fee: 1.25%-3.3% of loan amount, varies by service history and down payment.
Credit Score: Typically 620+, but flexible with lender discretion.

Debt-to-Income Ratio (DTI)

DTI measures your monthly debt payments against your gross monthly income. VA loans typically allow a max DTI of 41%, but this can flex with strong finances.

How to Calculate DTI

DTI = (Total Monthly Debt Payments / Gross Monthly Income) * 100

Financial Factors Affecting Eligibility

Income

Stable, verifiable income (pension, disability, employment) impacts loan approval.

Credit History

Payment history, bankruptcies, and credit utilization affect lender decisions.

Debt Load

Car loans, credit cards, and student loans increase DTI.

Assets

Savings or investments can offset higher DTI or lower credit scores.