Throughout the VA home loan process lenders will want to look at all of your expenses. This includes childcare in which you may be asked to produce a VA Childcare Statement.
Let’s face it, taking care of children can be expensive. And those expenses can have a very real impact on your approval for a VA loan.
VA lenders require a written child care statement to show certain expenses. Below we detail those expenses and the ways children can affect your ability to get a VA loan.
A child care letter is required on a VA loan if the borrower has children under the age of 13. A VA loan requires that childcare expenses are counted as liabilities for qualification purposes. The letter states what if any child care costs occurred every month, and if none are incurred the reason.
Monthly expenses will affect your debt-to-income ratio. It’s important to remember that only certain types of debts and income count toward your DTI ratio.
To get a complete picture of how child care expenses affect your eligibility, speak with a home loan specialist today.