VA loan requirements for income to qualify for a VA loan in California have many rules and guidelines. This post will go over the main things VA lenders are looking for regarding income when qualifying a borrower for a VA home loan in California. For all w-2 wage earners VA home loan requirements will ask for your last 30 days paystubs, last two years w-2’s and last two years federal tax returns all pages. If you are self-employed VA guidelines just require your last two years federal tax returns all pages and also your corporate tax returns if you own 25% or more of a corporation. So below is general information how VA financing looks at different kinds of income:
Bonus income – you will need to have received bonus income for two years and VA lenders will take an average of those two years
Self-employed-VA lenders will take an average of your last two years NET income off your federal tax returns. Depreciation can be added back to your income. If your income declined, VA lenders will go off the latest year only
Overtime – VA loan requirements are similar to bonus income and VA lenders will take a two year average of overtime
Hourly workers – If you are paid hourly many times VA lenders will take a two year average of your income and possibly less if your income is declining.
Child support income –VA guidelines allow you to count child support income if you will receive it for three more years and you can document checks received the last 12 months
Social security income – allowed to be counted
Commission income – Two year history needed and two year average taken
2106 Unreimbursed business expenses – VA loan guidelines require these deductions to be subtracted from your income. Be careful of this.
Rental property income - VA lenders will go off the NET income off your schedule E and average the last two years (be careful of if there is a loss)
So I hope this helps you think about your income when preparing to apply for a VA home loan in California. Please give us a call at 858-922-7899 or email at homeloan8@gmail.com if you have any questions about getting approved for a VA loan in California.
Below are some highlights of VA home loans in California:
- VA loan credit score does not have to be perfect, you can often still get the best rates with a 620 VA credit score
- VA loan limits in California go up to $700,000 to $1 million with zero down in areas such as San Jose, San Francisco, Los Angeles, Orange County, and San Diego. Give us a call for VA loan limits in you areas. We lend in every corner of California including Fresno, Sacramento, Stockton, Redding and more!
- You can get a VA loan in California only two years after a short sale, foreclosure or bankruptcy
Rob Chomentowski
858-922-7899
Sr. Loan Officer (and VA specialist)
VA Home Loan Requirements For Income in California is a post from: VA Home Loans Call Rob 858-922-7899
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