How much house can you afford?

Please note that the VA uses two methods for qualification purposes. The primary method of evaluating a veteran’s income is the residual income method. Under this method, the underwriter determines that a veteran has sufficient income to cover day-to-day living expenses after paying housing expenses, taxes, and other debts such as car payments and credit card payments. VA also uses a debt-to-income ratio method like many programs. However, VA uses only one ratio which is the ratio of total debt (both housing and other debt) to income.

Submitting a VA Loan Application is the best way to see how much you truly qualify for. We will look at income (amount and stability), credit and compensating factors involved when rendering a decision

Prequalifying for your VA loan helps you:

It is to your advantage to pre-qualify for your VA mortgage loan before shopping for a home.  This is the first step in your mortgage process.  By prequalifying for a given loan amount, you can comfortably shop for a home within your price range.  In addition, prequalifying for your VA home loan mortgage can expedite the closing of your VA loan.  Prequalifying for your VA home mortgage lets the agents and sellers with whom you work know that you are a determined and qualified buyer. In addition, most sellers favor offers from prequalified buyers over offers from buyers who have not taken this important step.