We have been trying to get a VA loan. We can't find anyone to help. We live in Texas, have a certificate of eligibility,and am retired from over 34 years of service. The process is complicated and we haven't figured out how to get help.
I have just retired (1 Jul 08) and have secured a job with a contractor for 1 year beginning 14 Jul 08. I'm being told by someone that lenders will not count this new income for 2 years because I will be classified as "self-employed"? This job is the same as I've performed while on active-duty. I've spoken to the VA and they state this would qualify as a "continuation of income". Can you speak to or clarify this matter for me? Thanks!
It is because you are going from W-2 income to 1099 income. There is no way to get around it. 2 years minimum of receiving the 1099's. Also, keep in mind that your income will be figured off of your tax returns, not the 1099 figures. Basically, your net income after writeoffs averaged over 2 years will be used to figure out your monthly income and your debt to income ratio. There are thousands of people that are making good money and can easily afford a house but on paper it looks like they make hardly anything if not taking a loss. That's the drawback and unfortunately, there is no way around it for getting a VA loan. With good credit scores and a minimum 10% down payment, there are conventional loan options that will work for you if that ends up being your case.
