The guidelines require that an estimated cost of living in the home be considered when calculating debt ratios and monthly expenses to decide if a veteran can qualify for the loan. VA loans differ from other government backed loans in this regard. The VA wants to be sure the military member can afford the housing expenses.
To estimate this follow the steps below.
- Use the MLS listing or county records showing correct square footage.
- Calculator
- Find your listing sheet or county record (they should be about the same square footage), and go to the part that shows the square footage. Do not include unheated spaces such as a garage.
- Multiply the total square footage of your home times the 14-cents-per-square-foot VA allowance for an estimate of monthly utilities and maintenance. Example: 2400 times 14 cents per foot equals $336.00. This is the monthly amount that would be used in the VA expense worksheet for shelter expense.
The use of an experienced realtor is invaluable in helping you find just the right property within your budget.
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