What is a child care expense letter?
What is a child care expense letter?
Many lenders require a written child care statement. This is a document that’s reviewed by your underwriter once you have a contract on a home, and it outlines whether you incur daycare expenses on a monthly basis. An underwriter will view this is a valid reason for not having day care expenses.
Is daycare included in debt to income ratio?
Typically, only revolving and installment debts are included in a person’s DTI. Monthly living expenses such as utilities, entertainment, health or car insurance, groceries, phone bills, child care and cable bills do not get lumped into DTI.
How long does it take for VA loan approval?
Most VA loans close in 40 to 50 days, which is standard for the mortgage industry regardless of the type of financing. In fact, dig into the numbers a bit and you don’t find much difference between VA and conventional loans.
Does VA require a child care letter?
What is a Child Care Letter? A child care letter is required on a VA loan if the borrower has children under the age of 13. A VA loan requires that childcare expenses are counted as liabilities for qualification purposes.
What is the VA child care subsidy program?
The Child Care Subsidy Program assists families in paying child care costs for children under age 13 who are not eligible to attend public school during the part of the day when public education is available, or children with special needs under age 18 who reside with the applicant.
What is the acceptable debt-to-income ratio for a VA loan?
The debt-to-income ratio determines if you can qualify for VA loans. The acceptable debt-to-income ratio for a VA loan is 41%. Generally, debt-to-income ratio refers to the percentage of your gross monthly income that goes towards debts. In fact, it is the ratio of your monthly debt obligations to gross monthly income.
What documents are needed for VA loan?
The following is a summary of the documents typically required for a VA loan:
- A government-issued ID, such as a drivers license.
- Past two years of W-2 statements.
- Past two years of tax returns.
- Most recent bank statements from checking, savings and retirement accounts.
- Most recent pay stubs.
Is it hard to get approved for VA loan?
If you’re eligible, VA loans are fairly easy to qualify for, since there’s no down payment required, no minimum credit scores, and no maximum limit on how much you can borrow relative to income.
Are daycare expenses separate from child suppor?
Daycare and childcare expenses are taken into account when the Court calculates child support and usually do not constitute a separate payment. However, if there is a Court Order, or settlement agreement, directing you to pay daycare expenses separately for whatever reason, then yes you must pay if you have the ability.
Can you deduct your preschool expenses?
While it’s not a deduction, the U.S. tax code allows you to get some assistance with your expenses for childcare in many cases, including the money you pay for preschool. Depending on your income, you can claim a tax credit for up to 35 percent of your preschool expenses,…
Can I add daycare expenses to the child support?
Yes, daycare expenses can be added to child support. You should be ready to prove that you pay them. You cannot ask for reimbursement for their expenses only your own.
What is a child care letter?
A child care letter is a letter required on a VA loan if the borrower has children under the age of 13. A VA loan requires that child care expenses are counted as liabilities for qualification purposes. A child care letter is a letter required on a VA Loan if the borrower has children under the age of 13.
What is a child care expense letter? Many lenders require a written child care statement. This is a document that’s reviewed by your underwriter once you have a contract on a home, and it outlines whether you incur daycare expenses on a monthly basis. An underwriter will view this is a valid reason for not…