VA Residual Income Requirements: How They Impact Loan Approval? | reAlpha Mortgage

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.

• 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.

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.

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.

Below is a simplified version of the VA Residual Income Requirement chart. (Source: VA.gov)

Add $80 for each additional family member

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.

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.

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.”

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.

Find the Perfect Mortgage for Your Dream Home with reAlpha Mortgage.

Compare options, calculate payments, and get expert guidance - all in one place.

Check if you qualify

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

‍It varies by region and family size. For a family of four, it ranges from $1,003 to $1,117/month.

‍Take your monthly income, and subtract your monthly debts and housing costs. What’s left is your residual income.

‍ Yes, with compensating factors like good credit, reserves, or additional income.

‍Housing (PITI), debts, utilities, child care, and basic living costs.

‍Yes. reAlpha provides a low-barrier, commission-free way to co-own income-generating real estate properties.

Buying your dream home doesn’t have to drain your savings. With reAlpha Mortgage, you can unlock up to 75% of your buyer agent’s commission back - real cash that can go toward inspections, closing costs, or even your first furniture set.

Here’s how the rebate stack works:

• 25% back when you use a reAlpha agent

• 50% back when you also choose reAlpha Mortgage

• 75% back when you bundle with reAlpha Title

You served your country -now let your benefits serve you.

Get started with your savings at reAlpha Mortgage.

• 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.

Find the Perfect Mortgage for Your Dream Home with reAlpha Mortgage.

Compare options, calculate payments, and get expert guidance - all in one place.

Check if you qualify