VA home loans may not require a downpayment, but applicants still need to prove their financial worthiness. Lenders can’t give out loans without knowing that borrowers will be able to pay the money back. Therefore, if you plan on buying a home with a VA loan, you will most likely need to show that you have steady income from your job. Below, we’ve discussed VA loan employment requirements in detail.
What Are the Employment Requirements for VA Loans?
Generally speaking, lenders want to see that VA applicants have at least two years of steady employment in the same job position. However, this is not always practical due to the nature of VA loans. Applicants may be transitioning out of the military into civilian life, in the middle of a career change, or receiving disability income. Therefore, there is some flexibility allowed. Each applicant is assessed on a case-by-case basis.
Overall, your lender wants to see that you have stable, consistent income and will be able to make your mortgage payments. If you have a steady, regular source of income and a good history of being able to remain employed, you are considered less of a risk.
Verification of Employment for VA Loans
In addition to verifying your income, your VA lender will also want to confirm your employment status. This is referred to as a VOE, or Verification of Employment. A Verification of Employment can be performed in a variety of ways such as:
- Verbal verification: Most of the time, verbal verification is sufficient for a VA loan. In this case, your lender will call your employer and verify your employment status.
- Written verification: In some cases, a lender may require a special document or written verification that confirms an applicant’s employment situation.
- Active duty verification: If you are active duty military, then your VOE will look a little different. You will need to provide your lender with a copy of your Leave and Earnings Statement so they can verify your employment.
- Special documents: If you are receiving Social Security or disability, your lender will most likely request a copy of your awards letter. If you have recently left the military and been offered a new job, your lender may be able to use your offer letter to confirm your employment status.
Learn More about VA Loan Requirements
If you have questions about VA loan job requirements, please do not hesitate to contact us. One of our staff members will be more than happy to assist you and provide you with the information you need. Call now to get in touch!