Mortgage Glossary
Residual Income
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Residual income is the money left over each month after a borrower pays the mortgage, debts, taxes, and basic living expenses. It is a key qualifying factor for VA loans.
What Residual Income means
The VA uses residual income alongside debt-to-income to confirm a veteran has enough cushion for groceries, gas, and emergencies. Minimums vary by region, household size, and loan amount. A strong residual figure can offset a higher DTI.
Florida example
A veteran family of four in the South region needed about $1,003 in monthly residual income. After all obligations, they cleared $1,450, which strengthened the file even with a 44% debt-to-income ratio.
Related program: Learn more →
Related Mortgage Terms
Still have questions?
Talk to a licensed Florida mortgage broker — no cost, no obligation.