VA requirements

VA Loan Rules For Employment, Income: A Reader Question

August 29, 2012

VA Loan Rules For Employment, Income: A Reader Question

A reader asks, “I have been at my current job for 18 months. Prior to this I was in school under Chapter 31 Vocational Rehabilitation.”

“I receive service-connected disability payments, and was receiving Social Security disability. Would these circumstances create a potential problem in meeting the VA requirement for 24 months employment?”

VA Loan rules for employment state that an employment record of 12 months or less may not be considered stable enough for VA loan approval; that said, the VA Lender’s Handbook states, “… it may be considered stable and reliable if the individual facts warrant such a conclusion. Carefully consider the employer’s evaluation of the probability of continued employment, if provided.”

The VA loan rules for lenders for such cases are considered guidelines to be used for evaluating individual circumstances. There are few blanket rules that apply to every employment situation so it’s up to the lender to determine whether the VA loan applicant is a suitable risk for the VA home loan or not.

That evaluation can include looking at the school or specialized training leading up to the current employment situation. Some borrowers may be considered more suitable candidates based on the level of specialized skill the VA loan applicant has, the type of specialized training or experience required to hold the current job, etc.

The best advice in this situation is that the borrower should speak to the lender and the Department of Veterans Affairs directly to see how the individual circumstances may affect the VA home loan application.

Do you have questions about VA mortgages? Ask us in the comments section.

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