Requirements:

o Maximum debt ratio is 46% and veteran must meet the residual requirement with compensating factors
o Although there is no minimum FICO, the veteran must meet the ratio requirement and have residual income 120% over that required for family size
o Verification of rent or 12 months cancelled checks for the last 12 months' rental history with no lates
o No derogatory credit within the past 12 months
o Letter of explanation for any derogatory credit and credit inquiries
o VA considers open collections as recent derogatory credit; this would count if the collection was reported within the last 12 months. Recent short sale of a previous mortgage or a previous foreclosure for the veteran or the non-purchasing spouse will be a substantial negative issue in a veteran's credit review
o No down payment assistance programs allowed
o Any VA cash-out refinance cannot exceed 90% LTV/CLTV

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