A mortgage loan guaranteed by the US Department of Veterans Affairs (VA) is an important benefit offered to veterans, servicemembers, and military families. VA loans require no down payment, no private mortgage insurance (PMI), and have no prepayment penalty. Because they’re designed to help veterans become homeowners, VA loans can be extremely flexible, and eligible borrowers in Florida can even use part-time or overtime income to help them qualify for a VA mortgage. Here are some things to consider.

  • Work History: The first thing a VA lender will look at is your work history. Typically, lenders want to see at least two years of work history. That history can be with one employer, or more than one, depending on the lender. If your work history is shorter than two years, you may be asked to meet some other requirements, like showing a significant savings balance or a low ratio of debts to your income.
  • Reliable Income: The second thing that VA-approved lenders are looking for is reliable, consistent income. While qualifying for a VA loan with part-time income is certainly possible, it can be a bit more complicated than qualifying with a regular, full-time paycheck. If your job regularly schedules you for 30 hours of work each week, that’s consistent enough to meet most lenders’ requirements.
  • Lenders Differ: However, if you work 40 hours one week and 20 hours the next, that can be an issue for some lenders. If your hours are relatively consistent, the lender may simply average your income over a certain period (say the past year), and use that amount for qualifying you for a loan.
  • Overtime: Your lender will probably apply the same standard to overtime pay. If you regularly work overtime, it can be factored into your income. However, if your overtime hours are sporadic and inconsistent, remember that they may need at least 2 years history to average. Commissions and other short-term income may also need the same 2 years history.
  • Second Jobs: This can also face the same scrutiny. If you take on a second job for a few months before trying to qualify for a VA loan, it probably won’t count towards your income. If you’ve been working a second job for two years and it looks likely that you’ll be able to continue to do so, that income can probably be counted.

Check With Your Lender

Policies vary between VA lenders, so it’s a good idea to check with more than one. And remember, while short-term second jobs, overtime, and commissions might not count toward your income, you can use them to accumulate a down payment. Down payments aren’t required with VA loans, but you can opt to make one if it will help you qualify. Embrace Home Loans has worked with thousands of veterans to help them obtain VA mortgages, and we’ll be happy to provide you with more information. Call us at 407-733-6425, or contact us online.