Buying your first home using a VA loan is an exciting milestone, especially if you're a veteran or an active duty service member. However, this process can also be filled with pitfalls that might cost you time, money, and even the chance to secure your dream home. Drawing from years of experience helping VA homebuyers, I want to share the six most common rookie mistakes that I see first-time VA buyers make — and more importantly, how you can avoid them. If you’re preparing to buy your first home with a VA loan, this guide will help you dodge costly errors, reduce stress, and make your home buying journey smoother. See full blog post

Key Takeaways - Not all debts automatically count against you when applying for a VA loan—debts paid by others may be excluded under certain conditions. - Understanding the difference between contingent and non-contingent liabilities is crucial in determining which debts can be excluded from your debt-to-income (DTI) ratio. - For contingent liabilities (such as co-signed loans), lenders typically require proof of 12 consecutive payments made by the other party to consider excluding the debt. - Non-contingent liabilities, where you are the sole borrower, generally cannot be excluded regardless of who is making the payments. - Late payments on co-signed loans are treated differently by lenders and may impact loan approval depending on lender discretion. - Always consult your lender for personalized guidance on your specific VA loan situation. When you’re applying for a VA home loan, understanding how your debts are evaluated can make a significant difference in your loan approval chances. One common question I get is whether you can exclude debts that someone else is paying—like a parent, spouse, or child—from your VA loan debt-to-income ratio. The good news is, under certain circumstances, you can. But it depends on the type of liability you have and the documentation you can provide. In this article, I’ll walk you through the ins and outs of how VA loan underwriting treats debts paid by others, focusing on the critical distinction between contingent and non-contingent liabilities, what the VA guidelines say, and practical steps you can take to work this to your advantage. See related blog post

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