How Much Can I Afford (VA Home Loan Benefit)

VA Declassified – Income

Va declassified secrets of the va home loan benefit where we battle fake news drop truth and give you tools to succeed chris bettis from fluent mortgage va fluently all right so for fundamental just getting through approval process if you look here at the screen real quick that three-legged table right so we have the credit component we’ve already covered

That for va since the benefit not alone the lowest standards required to qualify so that’s a really easy link to fill in okay the collateral that’s the home we know it’s va right you can put as little zero down so as long as just a residence a single family manufactured home an approved townhouse or something good to go that lake’s pretty much a guarantee so

Really in terms of qualifying on your mind should be all about the capacity or income how much can you afford okay so let’s kind of work through this and i will spare you the vector calculus i’ll spare you the nerding out which i a lot of times like to do with you 35 front end 43 if you go above 43 then 125 percent of residual and that’s only your dti and then

Residual and don’t forget to add back in the per square foot and the no i got you right we’re gonna talk to you a really good way to kind of ballpark it so as you’re looking as you’re starting the process you know about how much house you can afford of course get pre-approved first we’ll tell you exactly but here’s kind of the let’s break it down barney style

Right so for income obviously first off make sure your veteran active military you serve we have um eligibility entitlement and everything from scd employment retirement annuities social security disability anything that can be tracked validated or is on your tax returns that’s your income right so you plus whatever money is out there that’s our income and so

For this hypothetical scenario we’re gonna walk through we’re gonna imagine it’s five thousand dollars a month now remember on your paychecks as an example there’s a big number the gross income and then the little number the net income so before taxes after taxes we’re talking about the big number so that number that shows up on your w-2 if you’re unemployed by

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Somebody else’s example that big number so however much you make per month big number okay 5k in this example the next thing we’re going to do so there’s your income is we’re going to talk debts right so anything that’s going to show up on your credit report plus the new mortgage so if your cell phone doesn’t report to the credit report agency doesn’t count your

Homeowner’s insurance lots of little utilities don’t count but automobile loans uh credit card bills any past student debt anything on your credit report plus the new home so either we’ll boil your credit and we’ll figure out exactly how much or use your credit karma or whatever of course privacy we’re using a hypothetical not real person for our gi gene so on

This scenario there’s going to be somewhere that’s going to show you what the total is right and so really we just want the total of all payments and so kind of a side note real quick um if you have an existing mortgage and you’re going to sell that house to buy a new house you get to negate that payment right because that house is going to get sold so that

Payment goes away we don’t count that but literally in this case autos education installment open debts credit card debts whatever so in this case a really fiscally sound person with almost no debt whatsoever they’ve got a 1200 balance on some on a credit card they pay eight bucks a month that’s our obligation so it makes it pretty easy and so here’s here’s the

Roundabout version of it literally about 50 of your gross income that big number is how much you can use for your life okay for va or a two to one ratio if you make twenty five hundred bucks you you’re gonna buy a house of twenty five hundred bucks a month you need at least five thousand dollar a month in income right credit card is half the size of their income

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So your bills are hacked out of your income there’s your 50 let’s use that hypothetical scenario so how much house can we get right how much house can i afford five thousand dollars thank you gi jane divided by two right 50 it’s 2500 bucks that’s the max then we wash away anything on the credit cards anything on the autos anything that’s on the credit report

That’s summary right so luckily in this case almost no debt eight bucks so 2500 minus eight means we can have up to a 2492 payment for that house i mean that’s a lot right a 2500 payment almost but remember that’s house taxes insurance no mortgage insurance because it’s va you can put zero down you have to deal with that like civilians do but total payment and

If there’s a homeowner’s association throw that into but your house payment right up to 24.92 so the fake news the loans aren’t good do a civilian loan not even close it’s a benefit not alone you can buy so much more house because they’ll let you go to a higher debt to income ratio you can buy so much more house because it has a much lower payment so in terms

Of you trying to max out how much house you can buy va is the way so that that fake news is from we know greedy bankers are um realtors who just don’t know the truth unfortunately old news fake news hopefully you got the truth in general two to one or fifty percent of the income can be used okay tool now that we’ve known this right you look at your w-2 you

Figure out all of the income you make you look at your credit card yes i can afford 1800 bucks a month here’s the free tool and obviously you can just call us but what i’d say as always we try and give you everything we can all in one place right so all you got to do go to and i’ll take you through real quick so click on the

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Calculators tab at the top mortgage calculator of course we’re not doing some conventional one we’re going va of course uh interest rate for today we’ll go 2.25 percent that is real and here we go now obviously we want a higher payment so we’re just going to start bumping this thing up right no we can afford a little more or we can afford a little more can

I do this right too much it’s right about there 24.93 that’s within a dollar right and and obviously property tax is very tremendous amount in the state so um in terms of mortgage that’s set at a 2.25 on 510 000 the mortgage is only 1991 shocking interest rates so low taxes though we don’t know for sure homeowners insurance is just a guess i said 65 bucks

A month so as a rough number two to one or fifty percent of income this person gi jane who has only eight dollars debt to her name who makes five thousand dollars a month should be looking if she could afford a 2500 payment in her life in her budget her mind the va should be saying yes go get your done our home all right guys we battled fake news we dropped

Some truth in the tools to go to the website and then just calculate your loan your terms for payments yourselves don’t forget to like don’t forget to subscribe don’t forget to share but most of all i’m pleading with you use your home benefit if you’re going to buy a house don’t let a greedy banker or an uneducated realtor steer you into civilian loan there’s

Nothing like va va is the way to go vad classified guys see you next week

Transcribed from video
How Much Can I Afford (VA Home Loan Benefit) By Fluent Mortgage – VA FLUENTly