08/26/2026
🚨🇺🇸🏡 BIG VA LOAN CHANGE — THIS COULD BE HUGE FOR VETERAN HOME BUYERS!
If you’re a Veteran or active-duty service member who has been told “no” because of collections on your credit, it may be time to revisit that conversation! 👀🔑
There has been an important update to VA Pamphlet 26-7, Chapter 4 regarding the way certain NON-MEDICAL collections are calculated for qualifying.
🔥 THE BIG CHANGE:
Previously, a non-medical collection without an established payment arrangement could be calculated using 5% of the outstanding balance as the monthly payment.
Under the updated guidance, the calculation is:
✅ 5% of the outstanding collection balance ÷ 12 months
That difference can be SIGNIFICANT!
💰 Example: $6,000 non-medical collection
❌ Previous calculation: $300/month
✅ Updated calculation: $25/month
That’s a difference of $275 every month being considered in the qualifying calculation! 🤯
For some VA buyers, that could make a major difference in their debt-to-income ratio and overall loan qualification.
🇺🇸 VETERANS — PAY ATTENTION TO THIS!
If collections were one of the reasons you were previously told you couldn’t qualify for a VA loan, your situation may be worth reviewing again under the updated guidance.
And if you’ve been waiting on the sidelines because you thought homeownership wasn’t possible—don’t automatically count yourself out!
Your VA home loan benefit is something you EARNED. Let’s make sure you have knowledgeable professionals helping you understand your options. ❤️🤍💙
📲 Message me “VA” and let’s start the conversation! We can connect you with a knowledgeable VA lender to review your individual situation and see what may be possible.
💜 Andrea Harris | Team Lead, Realtor®
🏡 Harris Homes Real Estate Team
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