Lending General Question. Losing my W2 soon.

[Illeana Lozano]

Hello everyone,

I apologize in advance if this is a simple question (fairly new to the game). 

I am currently active duty military with 8.5 years in, and transitioning to reserves at the end of this contract. For my last two purchases I have had my active duty day and it has been easy to qualify for loans. From my experience, lenders require at least two years of pay stubs at the same job. My goal is to transition to the reserves and get a government or contracting job in my local area. 

If I secure a decent paying job shortly after my transition, but don't meet that 2 year mark, will this put a pause in applying for conventional loan? (I understand that there are many creative methods for financing a purchase, just curious for conventional/VA loans.) I would like to note, my souse also has a job and will meet that 2 year requirement, but their income is far less than mine.

I know it ultimately boils down to talking to a lender but would to hear from the group, and see how someone in the same boat as me when about transitioning out the military while scaling their portfolio.

Illeana

[Elias Halvorson]

Aloha Illeana, 

I specialize in helping fellow veterans and happy to provide advice. I am only licensed in WA and HI so Im not trying to make $$$ off ya ;) . So, if you have unencumbered VA entitlement and are using a VA loan again, the most important thing would be to try to get hired as a W2 employee (whether you are going govie civilian or contractor). If it is in your same field as your current MOS/AFSC, etc, then you should have no issues qualifying for a VA loan and will be able to use the income of your new job. If you are 1099'd, then you would have to wait two years. IF you do use your VA loan for this purchase, remember to tell the lender you are in the process of filing a VA disability claim (I assume you are) as this will flag the loan, and as long as you receive a 10% disability rating you can petition the VA to return your funding fee they charged during the loan and the VA will return that money to you. Feel free to DM me with any further questions.

V/r,

Elias