Tag: retirement income

Field Report from Sevierville, TN

Field Report: Future Retirement Income as Qualification Factor

Can I use my future retirement income to qualify for a VA loan?

If you are planning to retire from the military, you may be able to use your future retirement income to qualify for your VA home loan. The lender will need to document that your future income will be sufficient to qualify for the loan amount you are seeking.

In order to use your future retirement pay, you must document a specific start date and a specific rate of pay. To do this, the lender will often request a letter on official letter head signed and dated by your commanding officer stating your approved retirement date and your monthly retirement amount.

Check out the ‘Field Report’ below to see how we qualified an Active Duty Lieutenant Colonel in the Air Force based on his future retirement income!

The Scenario

Active Duty Lieutenant Colonel in the Air Force applied for a purchase VA Loan. He had been turned down by another lender for unstable income because he was less than 12 months away from Expiration of Term of Service (ETS) and not yet receiving retirement income

The Obstacle

The individual could not qualify based on his active duty pay and his planned retirement was not until 4 months later.

How We Overcame

We requested an official letter stating his retirement date and this amount of his monthly retirement, which was signed and dated by his Commander.

The Result

Benchmark was able to close the loan 95 days prior to his retirement income starting!


Ready to use your VA Home Loan benefit? Take the first step and Check you Eligibility with our free COE tool.