Here’s what you need to know if you’re trying to qualify for a VA mortgage and you’re within 12 months of  your ETS.


If the date is within 12 months of the anticipated date that the VA Mortgage will close,
the loan package must also include one of the following four items, or
combinations of items, to be acceptable:
1) documentation that the service-member has already re-enlisted or extended
his/her period of active duty to a date beyond the 12-month period
following the projected closing of the VA mortgage or
2) verification of a valid offer of local civilian employment following the
release from active duty. All data pertinent to sound underwriting
procedures (date employment will begin, earnings, and so on) must be
included, or
3)  a statement from the service-member that he/she intends to reenlist or extend
his/her period of active duty to a date beyond the 12 month period, plus
4)  a statement from the service-member’s commanding officer confirming that:
– the service-member is eligible to reenlist or extend his/her active duty as
indicated, and

– the commanding officer has no reason to believe that such reenlistment
or extension of active duty will not be granted, or documentation of other unusually strong positive underwriting factors, such as:

– a down payment of at least 10 percent,

– significant cash reserves, and

– clear evidence of strong ties to the community coupled with a
nonmilitary spouse’s income so high that only minimal income from the
active duty servicemember is needed to qualify.
Analysis: Base Pay:
Consider the applicant’s base pay as stable and reliable except if the applicant
is within 12 months of release from active duty.

– Analyze the additional documentation submitted.
– If the applicant will not be reenlisting, determine whether:
– the applicant’s anticipated source of income is stable and reliable, and/or
– unusually strong underwriting factors compensate for any unknowns
regarding future sources of income.


Contact John Burke with Great Plains Bank at (877)228-9069 or by filling out the form below.

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