Veteran College Student getting approved for mortgage?

I will soon be returning home from a deployment to Iraq. I am a reservist, I'm 22, and I'll be returning to school this January. I know that the $8000 first time home buyer tax credit is extended to April 30, 2011 for military members who were deployed during its final year. That being said, I have about a 4 month window to enter on a contract after I get back if I want to take advantage of the tax credit (and I do). My question comes in getting approved for the loan. I am eligible for a VA-backed loan, which I believe should help, my credit score is over 700, and I have plenty of money saved up from my deployment. The problem is, when I'm in school I'll only have a part-time job. I'll be recieving GI Bill benefits for going to school, and having tuition completely paid for by the military. With a part-time job, reserve pay, and the GI Bill, I'll be making more than enough money for the price range I'm looking for, but will a bank count the GI Bill as acceptable income? I have absolutely no debt. As long as I'm in school and the Federal Government exists I'll be getting paid. Plus my job history's not really steady because I've been in Iraq for a year. Will the VA loan help me here? Am I completely screwed? Would having my mom cosign be an option? Any input from experienced sources would be greatly appreciated. Thanks! by Sandman005 from Denver, Colorado. Oct 13th 2010 Reply