Getting a veterans mortgage loan is just like getting a conventional mortgage when it comes to income qualification. But to be sure, I will spell out the basics of qualifying income for a veterans mortgage loan.
I’ll start with a simple but powerful statement – if you cannot prove it you probably shouldn’t mention it. Better said, if you can’t give any documentation for what you are making it is likely the VA won’t consider it. So this means that if you get paid under the table for doing some side plumbing or electrical work for a local contractor for example that unless you claim it on your taxes you won’t be able to use it to qualify for a mortgage.
For the most part, the VA wants to see 2 years of employment verified – that is – the last two years. You can accomplish this in a variety of ways – W2′s, tax returns, and or a verification of employment provided by your employer(s). You don’t have to had worked for the same employer for the past two years, you just ought to be able to prove your employment.
You will also, in some cases, be asked to provide your most recent pay stub to show at least a 30 day pay period (this could mean that you need to show your last two pay stubs) with year to date totals. You need to be careful here if you are planning on switching jobs while you are applying for a VA mortgage. If you change jobs during the process you may have to wait to close your loan until you have at least 30 days of pay under your belt from your new place.
Make sure you talk to your loan officer about any job change plans so you can avoid any late minute surprises. The worst calls I can get as a loan officer is at the 11th hour when the lender does their last minute employment verification and the outgoing employer states that the applicant no longer works with the company.
I have heard some bad rumors out there about getting a veteran mortgage loan and being self employed. I am here to dispel any rumors. Yes you can get a VA mortgage if you are self employed – provided you meet certain guidelines.
I’m not going to go into this can of worms in this post. If you want more information on this, Google it, and you’ll find all sorts of clarifying information.
If you are wondering just what you will need to provide to document your income and prove your employment, your loan officer will guide your way. For sure, when you are shopping around for a mortgage in the beginning, you will want to have on hand your latest 30 days worth of pay stubs, and at least your last 2 years of W2′s.
