One month PITI reserves are required. Fixed rate loans using a buydown will not be qualified at the note rate, unless there is strong evidence that the income will increase with the adjustments. Bankruptcies must be discharged for two years and credit must be reestablished. Occupant co-borrower must be spouse or have own certificate of eligibility. The Veteran must have six months PITI reserves in the bank.
Seller can only pay the discount points and prepaids without having an effect on the loan amount.
Maximum Loan limits vary by county. Down Payment may be gift. Overall underwriting may be slightly more conservative. Fixed rate loans using a buydown will be qualified at the bought down rate. Bankruptcies must be discharged for 2 years and credit must be reestablished.