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How to Find Out if Your Income Makes You Eligible for a VA Loan

by Richard Marcus 05/11/2022

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All home loan programs require you to prove your ability to afford the house you buy. The same is true for home loans offered by the VA. Even though VA loans have no down payment and can have easier financial benchmarks for eligibility, lenders still evaluate your income when considering you for a loan. Here is a guide to the basics of VA loan income eligibility requirements:

Types of accepted income

VA lenders will consider income from multiple sources as long as they meet certain requirements.

  • Full-time income can be used for consideration if it's for a verified minimum of 30 hours per week.
  • Part-time income can also be counted, but only if you can provide a two-year minimum history of part-time employment.
  • Self-employment income also must have at least two years of history.
  • Residual income means the amount of money you have leftover after you pay all of your bills. Some lenders require a minimum amount of residual income to be eligible for a loan, and minimums are usually based on factors like the mortgage amount and amount of people in your household.

The most important factor in your income according to the VA is the likelihood it will continue. While many conventional lenders set a guideline for the minimum total income required, the amount does not mean as much as the consistency. A steady income, no matter how large, will help you gain approval for a VA loan.

What types of income don't qualify?

Not all types of income count toward VA guidelines for lending. Some examples include gambling or lottery winnings and one-time performance bonuses from your employer. Unemployment income is another common type of income VA lenders will not count toward meeting requirement guidelines.

These are just the basics of the income requirements for VA loans. To find out if you're eligible, the best thing to do is to consult a VA lender or financial professional to go over your unique situation.

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