We are in route, and currently working on completing a manual underwrite for the VA loan. We have received a Referral/Eligible which means WE MUST Move forward with a manual underwrite. - We are exploring alternate financing alternatives as a back up plan.
Per - Underwriter:
"VA Debt ratio up to 41%. Depending on the documentable compensating factors that could potentially go up to 45%.
VA residual requirement is based on the standard VA Residual Income Table. Any ratio exceeding 41%, even 41.5% would require 120% of the minimum required residual for qualifying. Any additional residual income is always a plus.
VA reserves are not always required, but highly recommended and help with manual UWs.
You will need a most recent and consecutive 24 mo housing payment history documented with canceled rent checks if paid to individual landlord or with VOR if paid to a professional property maintenance company."
Regional Underwriting Scenario Specialist