VA Loans and the Two Year Requirement
When a VA lender reviews a VA loan application, there’s a lot of ground to cover. The lender will order an appraisal, a credit report and ask that you provide a litany of documentation about your employment, your financials and other relevant information. When reviewing your job, what does the VA lender look for?
The primary requirement for a VA loan is to show a two year history of full time employment. Full time, for VA standards, means a job where you work at least 36 hours per week. To verify your two year employment, the VA lender will ask that you supply your most recent two years W2 forms or your two most recent federal income tax forms. Sometimes both will be required.
But what if you haven’t been at your job for two years, what happens? There are exceptions to this VA requirement and properly documented, a VA eligible borrower can finance a home using a VA mortgage. The first allowable exception is allotted for those currently in active duty. Active duty personnel can use a VA loan to buy a home as long as there is at least 181 days of active service.
Another exception is allowed for those just out of service and employed as well as for those just out of school. For those who have been in school, be it a community college or a university can have the two year employment requirement waived as long as the borrower can provide a copy of their transcript showing the dates the individual was in school.
The two year requirement can in fact be waived and the borrower can obtain a VA loan once they have two pay check stubs in their possession, typically as early as 30 days from the date they first started working.
