February 3, 2026
9 minutes
After serving your country, getting a home loan shouldn't feel like decoding rocket science. Yet many veterans are denied - not because they don’t qualify overall, but because they don’t understand one critical rule: the VA residual income chart.
If you've ever wondered why a VA lender seemed more concerned with "what's left over" after your bills than your salary itself, you're in the right place.
This blog unpacks the VA's residual income requirement in plain English. No fluff. Just facts, actionable tips, and real-life solutions.
Residual income could make or break your VA loan approval-but it doesn’t have to. We’ll show you how to work with it, not against it.
Key Takeaways:
- Residual income is different from your monthly income or DTI. It’s what’s left after basic living expenses.
- The VA sets minimum residual income thresholds by region and family size.
- Many denials happen because applicants misunderstand or overlook residual income guidelines.
- There are ways to qualify even if you're under the chart minimums.
- Residual income is one of the most critical -and misunderstood - parts of VA loan approval.
What Is VA Residual Income (And Why It’s More Important Than Credit Score)?
Residual income is what’s left after your fixed monthly expenses. Think of it like your household’s financial breathing room.
Example: If you earn $6,000/month but spend $4,300 on debts, housing, and obligations, your residual income is $1,700.
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The Department of Veterans Affairs (VA) sets a minimum residual income requirement based on:
- Region (West, Midwest, South, Northeast)
- Family size (including dependents)
This isn’t optional - it’s mandatory for VA loan approval.
VA Residual Income Chart 2025
Below is a simplified version of the VA Residual Income Requirement chart. (Source: VA.gov)
| Family Size | Northeast | Midwest | South | West |
|---|---|---|---|---|
| 1 | $450 | $441 | $441 | $491 |
| 2 | $755 | $738 | $738 | $823 |
| 3 | $909 | $889 | $889 | $990 |
| 4 | $1,025 | $1,003 | $1,003 | $1,117 |
| 5 | $1,062 | $1,039 | $1,039 | $1,158 |
Add $80 for each additional family member
Why You Can Make $5K/Month And Still Get Denied?
It shocks many veterans: You can have great credit and a solid income, but still get declined. Here’s why:
- Debt obligations (credit cards, car loans, child support) reduce your leftover funds
- High housing expenses can crush your qualifying ratio
- If your residual income falls below the threshold, your loan gets flagged
Think of it like this: VA loan approval is a financial fitness test. Residual income is your stamina score.
Can You Still Get Approved If You Don’t Meet The Chart?
Yes, but only with compensating factors.
These include:
- Higher credit scores
- Stable employment history
- Significant cash reserves
- Lower overall debt
Lenders like reAlpha Mortgage specialize in helping VA borrowers qualify -even when their residual income is borderline. Their team builds solutions around your needs, not around red tape.
How reAlpha Mortgage Helps VA Borrowers Qualify
Navigating VA loan guidelines can be overwhelming, especially when it comes to residual income.
reAlpha Mortgage understands the VA’s underwriting playbook and actively helps veterans:
- Recalculate obligations to improve qualifying ratios
- Identify additional income sources
- Apply compensating factors for borderline applications
If you're stuck or unsure, reAlpha Mortgage specializes in turning “almost approved” into “cleared to close.”
What If You Could Buy Real Estate Without a Middleman or Broker Fees?
Enter reAlpha - a platform designed for next-gen real estate investing. No commissions. No brokerage fees.
You can:
- Buy your home
- Skip high-pressure sales agents
- Get full transparency and real ownership
For veterans ready to build long-term wealth, reAlpha offers a new path forward.
Imagine Owning Your Home + Growing Wealth - Without Gatekeepers
You served. Now it’s time your money did too. With the right income, approval, and access, you're no longer just applying. You're building.
Whether you're buying a home or building a portfolio, the path is clear:
- Understand your VA residual income
- Work with experts like reAlpha Mortgage
- Consider commission-free investing with reAlpha
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FAQs
What is the VA residual income requirement for 2025?
It varies by region and family size. For a family of four, it ranges from $1,003 to $1,117/month.
How do I calculate my VA residual income?
Take your monthly income, and subtract your monthly debts and housing costs. What’s left is your residual income.
Can I still get a VA loan if my residual income is low?
Yes, with compensating factors like good credit, reserves, or additional income.
What expenses are included in residual income?
Housing (PITI), debts, utilities, child care, and basic living costs.
Does reAlpha help veterans invest in real estate?
Yes. reAlpha provides a low-barrier, commission-free way to co-own income-generating real estate properties.
Final Thoughts
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
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Compliance Disclosures:
- reAlpha Mortgage is a licensed mortgage broker, NMLS #1743790. Equal Housing Lender.
- This content is intended for educational purposes only and does not constitute financial advice.
- Mortgage approvals are subject to underwriting approval. Not all applicants will qualify.
- reAlpha is not a mortgage lender. Investment opportunities are not guaranteed and carry risks.
- VA loan information is based on guidelines from the U.S. Department of Veterans Affairs as of 2025. Always consult with a licensed lender for the most accurate and up-to-date information.
Need help navigating residual income rules or getting pre-approved fast? Connect with a VA loan expert at reAlpha Mortgage today - and keep more of your hard-earned benefits where they belong: in your pocket.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.