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If income, credit qualify, VA could loan $184,000


Q: I am a veteran. What is the maximum mortgage amount that the Department of Veterans Affairs will allow?

A: If you qualify with income and credit-worthiness, the VA will guarantee a maximum mortgage of $184,000. The VA will also allow you to finance the VA funding fee on top of the mortgage.

Q: I am a reservist. Am I eligible for a VA loan?

A: Yes. Reservists are eligible for VA mortgages. To be eligible, you must have been a reservist for six consecutive years. During that time, you must obtain at least 50 VA points of credit per year by participating in reserve activities.

Q: What underwriting guidelines does the VA use to qualify a veteran for a mortgage?

A: According to the VA underwriting guidelines, the combined monthly mortgage payment and all additional monthly recurring debt cannot exceed 41 percent of the borrower's gross monthly income. A stable credit history is also necessary. Needless to say, the property that you wish to purchase must also appraise for at least the purchase price.

Q: What effect do liens, judgments or bankruptcies have on the title to a house if the house is titled jointly in the name of a husband and a wife but the lien, judgment or bankruptcy is only against one spouse ?

A: Title to real estate in a husband and wife jointly is called "tenants by the entireties." The title is held as if it were one entity. One spouse cannot sell or mortgage all or part of the property without the consent of the other spouse.

Thus, the creditors of either the husband or wife cannot touch property -- in this case the house -- that is owned jointly by the couple.

The only ways to terminate the co-ownership interest of tenants by the entireties are by the death of either spouse, divorce (in which case the parties remain owners or tenants in common and creditors can attach each individual's ownership interest) or by mutual agreement.

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