Approval chances

[lonerower]

Looking into getting approved for a $350,000 VA loan in New Jersey.

Income is $3000 bi-monthly for a yearly of $78,000.

VA disability income of $525 for a yearly of $6300.

Total $84,300

I read somewhere that VA disability pay is calculated at 125% because it's not taxable. If that's true I have to recalculate the disability income.

Credit score of 700

low credit utilization and will probably zero in a few months.

Does overtime pay count if it is almost the same all year?

Do loan officers consider pay raises if they are in a contract?

Are pension contributions considered the same as retirement funds for assets?

[edcampbell613]

Yes they gross up the disability 125%, the VA funding fee will also be waived because of it as well.

Overtime will be calculated if there is a 2 year history of it and it is likely to continue.

Pay raise must be in affect.

Assets are not needed for VA loans but do help weaker files.

Only retirement that is liquid can be used as assets.

[lonerower]

Thanks for the clarification on disability pay.  This makes my total annual income $90,000.  The affordability calculators I have found online say I can only afford a maximum of around $330,000.  I have run the numbers and I can afford the payments and the rest of life's expenses and still contribute to a retirement account.  This is my gauge of affordability.  I think I come out to a 43% utilization rate.

[lonerower]

I think I just figured out that I can afford $3075 a month in total expenses by lending standards.  $90,000 / 12 = $7500. $7500 x .41 = $3075.

Does this look correct?

[edcampbell613]

.41 is industry standards and some go higher depending on file.

but yes, you got it.