LES & Statement of Service for VA Loan: What to Check

Confused about your military LES or statement of service for VA loan approval? One small error in these documents can delay - or even derail - your dream of homeownership. But here's the good news: once you know what to look for, your LES becomes a powerful weapon in securing your VA mortgage.

This guide breaks down exactly how your Leave and Earnings Statement (LES) affects VA loan approval, what lenders scan for, and how to fix common errors fast.

process because their LES either lacks necessary details or includes mistakes causing delays.

But here's the good news: once you understand your LES, it becomes your greatest tool to secure VA home financing. This guide clearly explains each LES section, helping you confidently navigate your loan approval.

Explore more on statement of service VA loan

• What is an LES? Your detailed monthly military pay stub provided by DFAS.
• Why it matters: Lenders rely heavily on your LES to verify income for VA loans.
• Common errors: Missing BAH, incorrect deductions, or confusing allotments.
• Action steps: Learn how to review and correct your LES for faster loan approval.

Pro Tip: While the VA doesn't specify a minimum credit score, lenders typically do. An accurate LES helps bolster borderline credit files (VA Lender’s Handbook, Pamphlet 26-7, Chapter 4).

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• Basic Pay: Tied to your rank and years served.
• BAH: Critical for loan calculations. Use BAH rate tools.
• BAS & Incentive Pay: May boost your eligibility when averaged over time.

• SGLI, taxes, TSP contributions, or auto payments.
• Multiple allotments might signal high debt.

• Net pay reveals your real take-home income.
• Watch for any negative balances.

More income tips in VA income handbook

• Missing BAH: Lowers qualifying income.
• Incorrect Allotments: Misrepresents your debts.
• Unstable Special Duty Pay: May not count.
• Too Many Deductions: Hurts your DTI ratio.

Want to avoid pitfalls? Read VA loan disqualifiers

• Download latest LES via MyPay.
• Double-check BAH, deductions, overpayments.
• Suspend non-essential allotments.
• Choose a lender familiar with VA nuances.

Explore VA loan pre-approval tips

Issued by DFAS (Defense Finance and Accounting Service), your LES resembles a civilian pay stub but with much more detail, including entitlements, deductions, leave, and allowances such as Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS).

• Includes hazard pay, special duty pay, and incentive bonuses.
• Details leave balances and projections.
• Clearly lists deductions and allotments.
• Essential for VA loan pre-approval; civilian stubs aren't enough (VA Pamphlet 26-7).

Your LES contains extensive information, but here's what's critical for VA loan approval:

• Basic Pay: Based on rank and service duration.
• BAH: Tax-free housing allowance significantly boosting your qualifying income.
• BAS: Food allowance, sometimes counted by lenders.
• Special Duty Pay: Incentive, hazard, or flight pay averaged over 12 months by lenders (VA Handbook 26-7, Chapter 4).

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• Federal & State Taxes
• Servicemembers' Group Life Insurance (SGLI)
• Thrift Savings Plan (TSP) contributions
• Allotments (auto-payments such as loans or child support)

• Net Pay: Actual take-home amount.
• Debt or Overpayments: Negative balances alert underwriters to potential risks.

Lenders look specifically for:

• Stable Income: 12 months or more of consistent earnings.
• Combined BAH & Incentive Pay: Increases borrowing power.
• Reasonable DTI Ratio: Ideally below 41% (DTI = monthly debts ÷ gross monthly income).

Avoid these frequent issues:

• Missing BAH: Significantly reduces qualifying income.
• Incorrect Allowances: Delays due to incorrect income reporting.
• Too Many Allotments: Excessive debt obligations lower loan eligibility.
• Confusing Format: Not all lenders understand military pay structures well.
• Fluctuating Special Pay: May be excluded by lenders if inconsistent.

Pro Tip: Inform your lender immediately about changes or new allotments to prevent underwriting surprises.

• Regularly log into MyPay and review your LES.
• Immediately report inaccuracies to DFAS.
• Suspend unnecessary allotments pre-application.
• Select a VA-specialized lender experienced in military income nuances.

Typically required documents include:

• 2–3 months of recent LES statements
• Recent credit report and bank statements
• VA Certificate of Eligibility (COE)
• Statement of Service (check with your lender)

The VA requires demonstrating “stability and reliability of income” through your LES (VA Handbook 26-7, Chapter 4).

Here's your action plan:

1. Download your latest LES from MyPay.
2. Verify accuracy, particularly BAH and deductions.
3. Reach out to reAlpha Mortgage (NMLS #1743790) for a hassle-free VA loan pre-approval process.
4. Use reAlpha for commission-free home purchases, further reducing your buying costs.

Understanding your LES and statement of service is the first step to VA loan success. Every accurate line item increases your chances for fast, hassle-free approval.

Ready to take the next step? Let reAlpha Mortgage guide you through a seamless VA loan pre-approval tailored to your military benefits.

When you’re ready to purchase, reAlpha can help you save thousands by returning a significant portion of your buyer agent’s commission-real savings you can apply toward closing costs or home upgrades.

Your service earned you these benefits. Let us help you claim them.