![]() ![]() If you've yet to pick out a property and don't have tax and insurance information, your loan officer will use estimated figures. The result is now $2,010.Īccording to VA lending guidelines, $2,010 is the maximum allowable amount you may have for a mortgage payment including principal and interest, taxes and insurance. Say that there is a $300 car payment and an installment loan of $150. Next, the loan officer subtracts qualifying debt from the $2,460 figure. If your monthly income is $6,000, then your total debts can't exceed 41 percent of $6,000, or $2,460. When a loan officer calculates your maximum VA loan amount, your gross monthly income is added up then multiplied by. ![]() Since the ratio is below the maximum ratio of 41, the borrower qualifies for the loan based upon debt ratios. If the gross monthly income is $7,000 the debt ratio is 2,639 divided by 7,000 for a ratio of. Now let's add a car payment of $400 and student loan payments totaling $200: Car Payment Property taxes are $3,000 per year and homeowners insurance is $1,500 per year. The loan amount is $300,000, the loan is a 20 year fixed rate loan at 3.00 percent. The maximum VA debt ratio limit is 41 so in this example, the ratio of 30 qualifies. If your monthly bills, including your mortgage payment add up to $2,000, and your gross income is $6,000 each month, your ratio is 2,000 divided by 6,000, or. Your VA debt ratio is a number expressed as a percentage and is calculated by dividing certain debt obligations by your gross monthly income. One of those rules limits how much you can borrow based upon a formula called the debt to income ratio, or simply "debt ratio." Your VA Debt Ratio The VA doesn't approve the loan but establishes specific rules that lenders must follow in order to receive the VA guarantee. As long as the lender followed established VA lending guidelines, the guarantee is in place. When you're considering buying a home and using your VA home loan benefit, one of the first questions you want answered is "How much can I qualify for?" VA loans are guaranteed, meaning any loan that the VA lender approves, has a government-backed guarantee of 25% of the loan amount. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |