VA Home Loan Income Requirements - Does My Income Qualify For a VA Home Loan?

A VA home loan is a good option for many veterans, but when it comes to buying a home, many times the government encourages veterans to work with private lenders. So, what do VA home loan income requirements entail?

In order to qualify for a VA home loan, you must meet the following criteria. As a matter of fact, these home loan income requirements are only the minimum necessary for a VA home loan. If you are planning on purchasing a home in order to live in it long term, then you must be careful.

The VA home loan income requirements do not include the amount of income that you earn each month. What you can't get is an interest rate that is higher than the standard VA mortgage interest rate. This standard VA mortgage interest rate is often calculated by multiplying your total household income by a specific percentage.

If you're currently working and not retired, this won't apply to you, as your total income will not be above the VA mortgage income guidelines. What you should know is that there are also special VA mortgage loans available for veterans who qualify for a portion of their mortgage based on several different factors. These veterans must prove they can pay off the mortgage in full or in a reasonable amount of time.

There are two types of home mortgage loans for VA veterans that will apply to your mortgage. The first is a VA modified fixed rate loan and the second is a VA FHA straight line mortgage. Here's a look at the basic differences between these two mortgages.

Straight Line Mortgages requires no paperwork and can be quickly approved by most lenders. Modified fixed rates can't be modified in any way by the lender. Your mortgage is set for life, as soon as you apply for it. You don't have the benefit of getting the ratelowered after you purchase a home.

The FHA can be modified to some extent. It takes a couple of years to set up, but they can be a great choice for military veterans that don't want to deal with all the bureaucracy. One of the major downsides to a FHA is that there are no "down payments". Most military veterans are limited to a 10% down payment, which is less than most other loans.

There are some additional features that can be found in the FHA loan, like the benefit of loan forgiveness for homeowners that sell their home early. There is also pre-approval for you and your spouse, which can be helpful if you plan on living together in your home.

The FHA has an added benefit that allows you to "cash in" the equity of your home. If you qualify for a VA loan as a military veteran, and you decide to sell your home within five years, the loan will be forgiven.

You can also choose a second mortgage to take advantage of this benefit. However, if you use this feature, you are also limiting yourself to the pre-approved interest rate.

A VA loan is often slightly higher than a conventional loan, but the choice is up to you. The difference usually comes from the "agency fee" that is assessed on top of the VA mortgage interest rate.

Don't forget to ask your lender about the VA home loan information you should know. Whether you plan on buying a new home or selling your existing one, it's wise to make sure that you have all the facts before you begin any serious closing.