Veterans Administration allows a veteran who qualifies income and credit to buy a home as the primary residence without putting money down towards the purchase price, the sales price can not exceed the appraised value. Veterans do, however, need money towards closing costs and the earnest money deposit, which the seller generally requires when a sales contract is signed. 100% of closing costs may be paid by the seller, which is an item to analyze when the offer is made to buy the home.

Income Requirement Guidelines for VA

Employment verification general requirement

• Verify a minimum of 2 years employment.
• If employed by the present employer less than 2 years:
• Verify prior employment plus present employment covering a total of 2 years;
• Provide an explanation of why 2 years employment could not be verified.

The Veterans Administration Loan debt-to-income ratio is a ratio of total monthly debt payments (housing expense, installment debts, etc.) to gross monthly income.

A ratio greater than 41 percent requires: Compensating Factors

• Sizable down payment
• The existence of equity in refinancing loans
• Little or no increase in shelter expense
• Military benefits
• Satisfactory homeownership experience
• High residual income
• Low debt-to-income ratio
• Tax credits for child care
• Tax benefits of home ownership