Guideline answers · VA

VA · Income

What is the VA residual income requirement?

It depends on the loan amount, family size and region. For a loan of $80,000 or more, a family of four needs $1,003 a month in the Midwest or South, $1,025 in the Northeast and $1,117 in the West. Reduce the figure 5% for active duty or retired military, and a DTI above 41% needs supervisor justification unless residual income beats the guideline by at least 20%.

Checked against the sources below on October 29, 2026. Reviewed by Chris Black, NMLS 275073, on November 2, 2026.

The rules

• Loans of $79,999 and below use a lower table (Table 9): family of 4 is $888 Northeast, $868 Midwest and South, $967 West; add $75 for each member over five.
• Add members over five only up to a family of seven.
• Family size counts everyone in the household, including a spouse not on the loan and anyone claimed as a dependent on the tax returns.
• Northeast: CT, ME, MA, NH, VT, NJ, NY, PA, RI.
• Midwest: IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI.
• South: AL, AR, DE, DC, FL, GA, KY, LA, MD, MS, NC, OK, Puerto Rico, SC, TN, TX, VA, WV.
• West: AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY.
• Military: reduce the figure by 5% for an active duty or retired servicemember, or a borrower who will clearly use nearby military-based facilities.
• DTI over 41%: needs a justification signed by the underwriter's supervisor, unless residual income exceeds the guideline by at least 20%.

Residual income for loan amounts of $80,000 and above

Watch for

• VA's own example: a family of three in Arizona with a $400,000 loan needs $990.
• Residual income is a guide, not an automatic approval or denial, but VA allows a loan to be denied on inadequate residual income alone.

Sources