First Sergeant (Dr. ) Candi O. Belle PhD USA-ret.

3 Replies

@Dr. Candi O. Belle PhD. Lenders have their own qualification criteria but most would require minimum FICO score of 580 and debt to income ratio less than 40% to 45%.

BUT, VA only requires 120% of residual income based on number of dependents and region you're in to qualify for VA guaranty. Residual income is just net income after all expenses are paid at the end of the month. For example, if the VA's residual income requirement for your region and number of dependents is $100, you need to net $120/month.

One lender can deny your loan based on their own set of rules but another can qualify you with less stringent rules. So, find a lender who is well versed in VA loan guaranty program who can qualify you, many are understanding of life events that cause scores to drop.

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