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Va residual income chart 20211/26/2024 Residual income is sometimes called “discretionary income”. This includes the mortgage and escrows, of course, as well as whatever student loans, car payments, credit card bills and whatever other obligations exist. Residual income is the monthly household income which remains after a homeowner has made monthly payments to on all of his credit accounts. The Department of Veterans Affairs requirement for “residual income” is a big reason why. However, despite few VA borrowers having “skin in the game”, VA mortgages default at the lowest rate of all major lending options - including prime loans made via Fannie Mae and Freddie Mac. It’s among the program’s most popular features. Residual Income : Helping VA Borrowers Avoid Foreclosure The key is a common sense guideline known as “residual income”. Unlike other 100% financing programs, though, VA loans default at a very low rate. One such “zero-down” program is the from the Department of Veterans Affairs.Īvailable to veterans and members of the military, VA home loans give military buyers the ability to finance 100% of a home at low VA mortgage rates. It’s also because of low- and no-downpayment mortgage programs. This is, in part, because the homeownership costs are lower than rental expenses in many U.S. The housing market is rebuilding with first-time buyers playing an outsized role in its rebirth. Low Foreclosure Rates For VA-Backed Loans In order to get mortgage-approved, the Department of Veterans Affairs requires VA mortgage applicants to show a minimum VA residual income based on their geography and household size. VA residual income is the discretionary income which remains after a homeowner has fulfilled all of its monthly credit obligations.
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