UPDATES TO VA UNDERWRITING GUIDELINES

Even though interest rates have fallen many veterans are now in danger of not qualifying due to a decision at the top that effects everyone. Beginning April 1, 2019, the VA underwriting guide was updated to include a minimum of 5% on all student loan payments not currently in a repayment plan. This is an increase from 0%.

This will increase the Veteran's debt ratio causing their buying power to be diminished. For instance, a veteran with as little as $25,000 dollars in student loans in deferment will now be responsible for 5% or $1,250 dollars a monthly payment.

A good way to mitigate this is to have an income-based repayment plan done before applying. The payments are generally less than 1% and will increase the Veteran's buying power.

If you have questions about this change or any other questions about a VA mortgage your always welcome to call the office at 205.776.8401 and ask for Joe Bear.