n. Income of Recently Discharged Veterans (continued)

Analysis:  Prospects for Continued Employment

Cases involving recently discharged veterans often require the underwriter to exercise a great deal of flexibility and judgment in determining whether the employment income will continue in the foreseeable future.  This is because some veterans may have little or no employment experience other than their military occupation.  Continuity of employment is essential for a veteran with no retirement income or insufficient retirement income to support the loan obligation.

For recently discharged veterans who have been in their new jobs only a very short time, analyze prospects for continued employment as follows:

·   If the duties the applicant performed in the military are similar or directly related to the duties of the present position, use this as 1 indicator that the employment is likely to continue.

·   If the applicant’s current job requires skills for which the applicant has had no training or experience, greater time in the current job may be needed to establish stability.

If the applicant’s retirement income, compared to total estimated shelter expense, long-term debts and family living expense, is such that only minimal income from employment is necessary to qualify from the income standpoint, resolve doubt in favor of the applicant.

Examples:

·   Qualifying short-term employment - An applicant who was an airplane mechanic in the military is now employed as an auto mechanic or machinist. 

·   Nonqualifying short-term employment - An applicant who was an Air Force pilot is now employed as an insurance salesperson on commission. 

Most cases fall somewhere between these extremes.  Fully develop the facts of each case in order to make a determination.

Apply the guidelines under “Self-Employment Income” in this section to a recently discharged veteran who is self-employed.