Do We Have A Chance With The VA? VA Loan Eligibility
A reader asks, “My fiance is in the process of getting us our first home. The first lender decided to drop us due to my fiance’s “odd job” and time there. My fiance has 8 years in the Army, got out in 2012, became a truck driver…we now have a new lender who wants to approve and sign off on the loan, BUT because of his “odd job” and being paid per load they had to extradite it to the VA for them to approve it…DO WE HAVE A CHANCE WITH THE VA??”
All borrowers in these situations should know that when it comes to VA loan eligibility, if a lender submits a loan application to the Department of Veterans Affairs for approval, it’s the responsibility of the VA at that point to approve or deny the loan. The reason it’s impossible to say “yes” or “no” to this question is because ALL such cases are different.
There are a variety of standards and requirements that must be met for successful VA loan eligibility. A “chance with the VA” means meeting standards in several areas including: time on the job, income, debt-to-income ratio, credit score ratings and other factors.
A borrower with good income and time on the job–even a “non-traditional” job or seasonal work–may be approved for a VA loan if the FICO scores and debt to income ratio. But an otherwise qualified borrower who has poor credit scores may find their ability to get a VA mortgage loan reduced until those FICO scores improve.
Likewise a borrower with excellent FICO scores and income, who may have difficulty getting VA loan approval until the debt-to-income ratio improves.
So as you can see, there are many factors that go into approving a VA mortgage. Unfortunately this reader question doesn’t provide enough information to offer a reasonable guess that would be made “under ideal circumstances”. Even so, having sufficient information wouldn’t really be of help for a question like this–it’s the decision of the VA, and only VA officials can make the determination.
The best thing borrowers can do when applying for VA mortgages in any case, but especially situations with non-traditional employment or non-traditional credit information, is to insure that there is a good record of on-time payments, low debt-to-income ratio, and a dependable job history at application time. For some that may mean delaying a VA loan application until 12 months of such reliable payments and other “track record” data can be established.
It may be difficult to wait the extra time, but it’s good insurance when it comes to VA loan eligibility.
Do you have questions about VA home loans? Ask us in the comments section.