The housing market is rebuilding with first-time buyers playing a big role in its rebirth. This is, in part, because the costs of homeownership are lower than the cost of rental in many U.S. cities. It?s also the result of a plethora of low- and no-downpayment mortgage programs.
One such ?zero-down? program is the VA home loan. Available to veterans and members of the military, VA home loans give military buyers the ability to finance 100% of a home at low VA mortgage rates.
Unlike other 100% financing programs, though, the VA has maintained a low default rate on its loans ? a boon to its borrowers and to the housing market alike. The key is a common sense test for ?residual income?.
Click here to get today?s VA mortgage rates.
Residual Income : Keeping VA Borrowers From Foreclosure
Because most VA borrowers make no downpayment, they have little or no ?skin in the game?. However, VA mortgages feature the lowest foreclosure rate of all of the major lending options ? including prime loans via Fannie Mae and Freddie Mac.
The VA residual income requirement is a big reason why.
Residual income is the income that is left over after a borrower has made his monthly debt payments, a class of outflows that includes the mortgage payment and its monthly tax and insurance pro-ration, plus whatever student loans, car payments and other obligations which exist.
According to VA mortgage guidelines, military borrowers are required to must meet, or exceed, some minimum residual income standard which varies by both geography and family size.
For example, a family of two using a VA loan in Florida must show residual income of $738 a month whereas a family of five using a VA loan in California is required to show $1,158. Without the requisite residual income, the VA loan will be denied.?
In setting minimum residual income requirements, the VA?boosts the likelihood that its borrowers earn sufficient income meet monthly housing obligations; to cover household necessities such as food and gas; and to have a cushion in the event of financial crisis.
Click here to get today?s VA mortgage rates.
VA : Required Residual Income By Region
Depending on where you live and the size of your household, your VA residual income requirements will vary.?The following values are accurate as of 
and assume a loan size of at least $80,000.
Northeast Region VA Residual Income Tables
For ?Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont, the VA residual income tables are as follows :
- Family size of 1 : $450
- Family size of 2 : $755
- Family size of 3 : $909
- Family size of 4 : $1,025
- Family size of 5 : $1,062
- For each additional family member, add $80 up to a family of 7
Click here to get today?s VA mortgage rates.
Midwest Region VA Residual Income Tables
For ?Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin, the VA residual income tables are as follows :
- Family size of 1 : $441
- Family size of 2 : $738
- Family size of 3 : $889
- Family size of 4 : $1,003
- Family size of 5 : $1,039
- For each additional family member, add $80 up to a family of 7
Click here to get today?s VA mortgage rates.
South Region VA Residual Income Tables
For Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia, and West Virginia, the VA residual income tables are as follows:
- Family size of 1 : $441
- Family size of 2 : $738
- Family size of 3 : $889
- Family size of 4 : $1,003
- Family size of 5 : $1,039
- For each additional family member, add $80 up to a family of 7
Click here to get today?s VA mortgage rates.
West Region VA Residual Income Tables
For Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming,?the VA residual income tables are as follows :
- Family size of 1 : $491
- Family size of 2 : $823
- Family size of 3 : $990
- Family size of 4 : $1,117
- Family size of 5 : $1,158
- For each additional family member, add $80 up to a family of 7
Click here to get today?s VA mortgage rates.
Residual Income Can Overcome High ?Back-End? Ratio
Like other mortgage program, VA loans consider an applicant?s ?backend ratio?; the VA?s maximum allowable debt-to-income ratio is 41 percent. However, veterans whose DTI exceeds 41% are not necessarily denied for a VA loan.
The VA allows for an exception.
If you are a VA applicant and your DTI exceeds 41 percent, so long as your residual income is 120% of the stated guideline, your DTI will be ignored.
For a real-life example, a VA borrower in Ohio with a family of 4 whose DTI exceeds 41% would need to show residual income of $1,203 to satisfy the VA and its underwriters.
Click here to get today?s VA mortgage rates.
Apply For A VA Mortgage?
To be sure, the VA?s residual income requirement is far from perfect. Veterans with solid credit, but diminished incomes, may find it difficult to secure a mortgage. However, in concert with the VA?s stringent appraisal process and the agency?s commitment to helping veterans to avoid foreclosure, the residual income standard has helped keep veterans in their homes.
VA mortgage rates remain low nationwide. If you?re a veteran or active member of the military, see what VA loans can do for you.
Click here to get today?s VA mortgage rates.
Article source: http://themortgagereports.com/11170/va-mortgage-residual-income-guidelines-for-all-50-states
Source: http://residualrx.com/2012/09/18/va-mortgage-residual-income-guidelines-for-all-50-states/
howard stern free shipping day free shipping day golden globe nominations 2012 war in iraq war in iraq government shutdown
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.