VA Loan Funding Information
There are several income options available for a military veteran home loan. The main requirement for a VA loan is a stable and reliable income that is acceptable enough to cover the payment of the mortgage. There are various forms of income that the VA considers before granting a VA loan. The buyer must present all sources of income, past employment documentation, and evidence of current employment. The income considered for home loan approval must contain records for the past two years via W-2′s or lender verification of previous employment, and if there are any interruptions in a veteran’s employment history the borrower must clarify any break in employment. Our company can assist veterans with determining the income requirements for their streamline home loans.
Forms of Acceptable Income
The knowledge of the many different forms of acceptable income will assist the VA in the borrowing process. The most recognized form of income that military veterans can use is their salary or W-2 income. The overtime pay and bonus earnings that a VA averages for the previous two years may be qualifying income towards the loan as long as the overtime and bonus pay is expected to continue. A VA may use part-time pay from a second job if there is a 2 year history with the company. A VA may utilize seasonal employment if the employment has been consistent and is shown to continue in the future seasonal time frame. If a military veteran has a part-time job that does not meet these standards for acceptable income, then the VA can still apply the income as a compensation aspect. A VA’s commission income is also a form of acknowledgeable income averaged from the prior two years.
When applying commission as income, federal tax returns must be presented. Retirement and Social Security income is also applicable if the income will continue longer than the following three years, and the verification of retirement and social security is required in the loan process. If the VA is self-employed, the borrower must provide all income documentation, tax returns, balance sheets, etc. Other acceptable forms of income include alimony, child support, rental income, interest and dividends, and notes received (used as compensation features only).
The streamline VA loan forms of income can be confusing when attempting the borrowing process. Using our VA lending company to present the information regarding the acceptable forms of income and earnings will greatly improve the chances for a successful and understandable streamline VA loan.
