Applying for a VA Loan: Can I Use My GI Bill as Income?
If you’re a qualified veteran or active member of the armed forces, you’re entitled to use a VA home loan to finance the purchase of a home. It doesn’t matter if you’re buying a condo, townhouse, or standalone house—the loan will help you get into a home of your very own.
If you’re wondering how to apply for a VA home loan, you won’t just need to prove that you’re a qualified veteran. You’ll also need to meet your mortgage lender’s individual requirements. Your credit score and income still matter and can influence the amount your lender approves you for. So, can you use your GI bill as income to satisfy lender requirements?
It Depends on the Lender
You are allowed to claim your GI Bill as regular income to satisfy some lenders’ requirements. However, not all lenders will allow you to use the GI Bill as regular income. This is because GI Bill income is largely considered short-term. It may be a regular source of income while you’re receiving it, but you won’t continue to receive it ten years down the line.
If a lender doesn’t allow you to use your GI Bill income as proof of income, you may not qualify for a loan in the full amount that you want. Should a lender tell you that your GI Bill income doesn’t count, keep looking for a different lender. When you’re going over the process of how to apply for a VA home loan with your mortgage broker, ask them what they’ll accept as proof of income. If they won’t consider your GI Bill as an income source, you may want to look for a different lender.
Low Income Levels May Not Disqualify You
The biggest benefit of the VA loan program its flexibility in qualifications. Just because you have low regular monthly income or a low credit score doesn’t mean you’ll be disqualified for the loan. It just means lenders may offer you slightly smaller approval amounts or a slightly higher interest rate.
This is why it’s always best to shop around. Get quotes from different lenders and compare those quotes before you make a decision.
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Take the stress out of figuring out how to apply for a VA home loan and contact our team today. We’ll walk you through the process and help you get the financing you need quickly.
