Believe it or not but having a child or children can have an affect on your VA home loan. There are 3 main areas that can have a huge affect on whether or not you are able to go through with your VA loan.
Child Care
For most families, both parents must work either full or part time jobs to keep up with the rising costs of their expenses. That being said, if a child or children are too young to go to school they must have someone to watch them. Childcare has become extremely expense and can be financially crippling for a lot of families. This is why mortgage companies take into account the amount of money it takes to put one or more children into daycare and factor them into the debt-to-income ratio. This information should be provided early in the pre-approval process and failing to do so can lead to a loan being denied.
Child Support
Active duty and veterans who pay child support must also have this included in their debt-to-income ration. A large support payment could put your ratio over the acceptable percentage. On the other hand, if you receive child support this may be included as a part of your income which could help lower your DTI. In either case, it is important to provide the proper documentation in order for your loan to move forward.
Residual Income
This is very unique and specific to the VA home loan. VA established specific guidelines based on the amount of income you have remaining after all expenses are taken out based on your families size. This income is what is used to pay for food, clothes and other necessities. The VA makes sure that a family will have enough money to cover the basic necessities after a monthly mortgage is paid.
The Chapman Lending Team at HomeBridge Financial is honored to help many veterans utilize their VA home loan benefit each and every year. We ARE NOT a call center. Our goal is to provide the best customer service in the industry along with the most competitive rates and fees.
VA Loan Specialists
Semper Fi, Dan Chapman CAPT, USMC (vet)
ChapmanTeam@HomeBridge.com Call (760) 456-7139
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