What is residual income for a VA loan?
Residual income is the money left over each month after your mortgage, debts, taxes, and basic living expenses. The VA sets minimum residual income amounts by family size and region to make sure veterans aren't stretched thin.
It's a key reason VA loans perform so well and allow flexible DTI. If you pass the residual income test, the VA can approve a higher debt ratio. We'll calculate yours before applying.
Money left over
Residual income is the cash you have left each month after paying your mortgage, debts, taxes, and basic living costs. The VA uses it to make sure you can comfortably afford the home.
It is a unique VA rule that helps protect veterans from being stretched too thin.
Meeting the requirement
The VA sets a residual income target based on your family size and region. Meeting it can help you qualify even with a higher debt-to-income ratio.
We calculate your residual income for you. Apply now and we will confirm you meet the VA guideline.
Verify the details for your own situation against these government and agency sources: VA home loan eligibility and Florida Housing Hometown Heroes.