The purchase price and area where you plan to buy will determine whether or not you have to put "any money down". Debt to income ratio is important but if you have enough "compensating factors and a high "net residual" you can exceed debt to ratio standards. The seller can cover up to 4% of your closing costs (even pay off a debt to help you qualify) which more often than not will allow you to be reimbursed for appraisal and home inspection costs at close of escrow. The more you have in savings will give you more flexibility in how you structure your purchase. Closing costs can be up to 2%-3% of purchase price depending on the month and date you close. A lender would like to see 2 months of principal, interest, taxes and homeowners insurance in savings after closing, in the bank. The most important thing to do now is to get together with a VA lender to know what you would qualify for now and what steps you might have to take to increase your borrowing power in the next 6-12 months. I would be happy to meet with you for a free consultation and run a free credit report so that we know what your credit score is now and what we could do to increase it, if necessary.
San Diego Financial