Texas Home Loan
Insider Angelo Christian

Here are the basic requirements for the VA Home Loan underwriting:
VA loan guranty program; help serve the mortgage lending needs for the people who serve our country.

• Be a US Citizen or Permanent Resident
• Cosigners that do not occupy the home are not allowed, they must occupy the home
• In community property states spouse’s debts are included into the debt ratio. Even if one of the spouses is not going on the loan. Not the credit scores.
• Max debt ratio of 41%. Will allow to 50% if you have a 660 credit score or higher or have 6 months of cash reserves in the bank or if you have compensating factors.
• Two years job history does not have to be with the same job.
• Three years out from a foreclosure
• Three years out from a bankruptcy
• Student loans in deferment are included into the debt ratio unless three years or longer in deferment
• If you work a part time job must have one year on the job to count the income
• Fixed income or child support must show three year continuance
• You can deduct medical and childcare expenses from the income cap
• You can also deduct $480 per child under the age of 18 or a full time student
• USDA underwriters don’t like to see any late payments in the past year and no collections in the last year
• If you have judgments and liens must have payment arrangement or be paid off to qualify
• Will accept applicant with no credit score or no credit history. Must provide three alternative credit references such as cell phone, utility bills. No major derogatory credit can be on the credit report though.