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What can I count as income?

My wife and I are looking at buying our first home. We both have high 700's to low 800's credit scores. The only debt we carry is her car, which we pay down as agreed (or more when we have some spare cash). We pay off credit cards every month, but I am afraid on a mortgage request all this will look excessive, since I understand I cannot count my GI Bill stipends as income, so we will have to use only her income, my VA disability, and my part-time job as sources of income. Is there more that is taken into consideration when we apply, or will that "official income to official expenditures" ratio kill us in the process? We have been paying $1295/mo in rent for a year, and $792/mo before that, so clearly we can manage our finances. I just don't know how to get this across to lenders (or if it will even be an issue.)

Thank you,
TJ
  • May 03 2013 - Carrollton
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Answers (3)

I would suggest you get prequalified for your loan with a lender. They can establish your debt to income ratio  as well as telling you what type of income will be accepted. They will calculate your housing expense including taxes and insurance, and include this in your Debt to Income ratio (DTI) which will tell you the dollar amount you  qualify for.
  • October 21 2013
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Were you able to find the help in which you were searching for? Thank you for your service, if you need anything just let me know. I have a few lenders that are heavily seasoned in working with VA loans
  • October 21 2013
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Best solution is to have a local lender review your income and determine the amount that can be used to calculate income to debt ratio. Using a VA loan program is benefical for a number of reasons including not likely to have a funding fee if receiving disability, and fairly liberal debt to income ratios.  Contact me thru my profile if you would like assistance, as I am in Plano.
  • May 03 2013
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