VA Loan Income Requirements (DTI + Residual Income Tools)
VA loans don’t have a single “minimum income” number in 2026. Lenders qualify you using two affordability checks: DTI (total monthly debts ÷ gross income) and VA residual income (cash left after taxes, housing, and debts). Use the calculators below to estimate your snapshot and a conservative “minimum income” target for a planned payment.
Think of VA “income qualification” as a cash‑flow test, not a salary requirement. Two borrowers with the same gross income can get very different results based on debts, deductions, household size, and the full housing payment (PITI + HOA).
Quick Answers
Minimum income in 2026
- There is no published VA minimum or maximum income.
- Approval is based on whether the payment fits after verified debts and taxes (DTI + residual income).
- Best starting point: confirm benefit eligibility and entitlement, then run the numbers.
DTI guideline (41% is a benchmark)
- DTI = total monthly debts (including the new housing payment) ÷ gross monthly income.
- VA commonly references 41%, but it is not an automatic “deny” line.
- Higher DTIs can still work with strong residual income and documented compensating factors.
Residual income (the cash‑flow test)
- Residual income is what’s left after taxes, the full housing payment, and major debts are paid.
- Guidelines vary by property region and household size (loan amount ≥ $80,000 uses a common table).
- If DTI is over 41%, VA rules note a key threshold: residual income at least 20% above the guideline.
Income sources, tax-free pay, and 2026 limits
- Income must be documented, stable, and reasonably expected to continue (documentation varies by income type).
- Tax-free income (VA disability, BAH/BAS) may be “grossed up” for DTI only; residual uses real cash flow.
- 2026 FHFA baseline conforming limit is $832,750 in most counties; full entitlement removes VA loan caps, but lenders still underwrite affordability.
VA Income Readiness Tool (DTI + Residual Snapshot)
This tool estimates your total DTI and residual income against common VA guidelines (loan amount ≥ $80,000 table). It’s not a credit decision or a guarantee. A lender’s underwriting will verify documents, apply lender overlays, and use official tables.
Minimum Income for a Target Payment (Conservative Planning Estimate)
This planner works in reverse. Enter a proposed housing payment, other debts, region, household size, and a tax rate. The tool estimates the gross monthly income that would meet a 41% DTI target and the residual income guideline. It’s designed to be conservative and does not model every exception or lender-specific gross-up rule.
How VA Income Qualification Works in 2026
VA does not approve or deny loans based on a single income number. Underwriting is a combination of (1) income stability/documentation, (2) debt-to-income (DTI), and (3) residual income (cash flow after taxes and obligations). If you want a clean process, the goal is to make your documentation consistent and your budget realistic before you shop.
Debt‑to‑Income Ratio (DTI)
DTI is your total monthly obligations (including the new housing payment) divided by your gross monthly income. It’s a fast screening tool, but VA loans also rely heavily on residual income. For a standard DTI definition and example, see the CFPB DTI explainer.
- Include the full housing payment (PITI + HOA), plus all recurring monthly debts on credit and support obligations.
- Use gross income for DTI, but include only recurring income streams you can document and that are reasonably stable.
- Even one new loan during underwriting can raise DTI and trigger extra conditions.
Residual Income (VA Cash‑Flow Standard)
Residual income is what you have left each month after taxes, the full housing payment, and major debts are paid. VA publishes guideline minimums by region and household size, and lenders use them as a safety test.
- Residual uses net income (after taxes/deductions), so withholding and deductions matter.
- Region is based on the property location, not your current residence.
- A buffer above the guideline helps absorb utilities, maintenance, and “real life” expenses.
- Pull gross income from pay stubs/LES, award letters, or tax returns and identify any tax-free portion.
- List every monthly obligation underwriting will see (including minimum revolving payments and support you pay).
- Estimate the full housing payment and run DTI + residual so you’re shopping in a realistic range.
VA Residual Income Tables (2026 Planning Reference)
The tables below summarize common VA residual income guidelines by region and household size. Your lender will use official VA tables and may consider how far above the guideline you are, not only whether you barely meet it. If your DTI is above 41%, VA rules highlight a 20% residual cushion threshold in certain cases (see 38 CFR § 36.4340).
| Region | 1 person | 2 people | 3 people | 4 people | 5 people | Each additional |
|---|---|---|---|---|---|---|
| Northeast | $450 | $755 | $909 | $1,025 | $1,062 | + $80 |
| Midwest | $441 | $738 | $889 | $1,003 | $1,039 | + $80 |
| South | $441 | $738 | $889 | $1,003 | $1,039 | + $80 |
| West | $491 | $823 | $990 | $1,117 | $1,158 | + $80 |
Show the lower residual income table (loan amount ≤ $79,999)
| Region | 1 person | 2 people | 3 people | 4 people | 5 people | Each additional |
|---|---|---|---|---|---|---|
| Northeast | $390 | $654 | $788 | $888 | $921 | + $75 |
| Midwest | $382 | $641 | $772 | $868 | $902 | + $75 |
| South | $382 | $641 | $772 | $868 | $902 | + $75 |
| West | $425 | $713 | $859 | $967 | $1,004 | + $75 |
What Types of Income Count for VA Loan Qualification?
Most income types can count if they are verified, stable, and reasonably expected to continue. Underwriting is documentation-driven: the underwriter must be able to verify both the amount and the consistency. If an income source is hard to document, plan conservatively and don’t rely on it to qualify.
| Income Source | Typical Documentation | Common Underwriting Treatment |
|---|---|---|
| Base pay or salary | Recent pay stubs/LES, W‑2s, employment verification | Usually counted in full when stable and consistent |
| Military allowances & recurring special pays | LES showing consistent receipt and classification (taxable vs tax‑free) | Often counted when recurring; may require confirmation it is expected to continue |
| VA disability compensation or retirement pay | Award letter + bank deposits | Commonly treated as stable; tax-free status may help DTI via gross-up methods |
| Overtime, commissions, and bonuses | Year-to-date earnings, prior-year history, sometimes tax returns | Often averaged; requires a history that supports consistency |
| Self-employment income | Tax returns, P&L, business bank statements | Requires deeper review to confirm stability and ongoing capacity |
Tax-Free Benefits (VA Disability, BAH/BAS): What “Gross-Up” Changes
Tax-free income can strengthen a file because it delivers more spendable cash than a taxable paycheck of the same size. VA guidance allows lenders to “gross up” certain tax-free income for DTI calculations to reflect its tax advantage. The key caveat: gross-up is a ratio tool — it does not increase the cash in your bank account, and residual income is still based on real net cash flow.
Practical takeaways
- Gross-up may reduce DTI “on paper,” but your budget should still use real dollars you receive.
- Residual income is designed to show whether you have breathing room after the mortgage and debts are paid.
- Gross-up methods vary by lender — use it as a planning tool, not a guarantee.
How to use this page’s gross-up option
- Enter your total gross monthly income (including any tax-free portion).
- Enter the tax-free portion separately so the residual estimate doesn’t over-tax that income.
- Enable gross-up to see how a lender might view DTI, while keeping residual based on cash flow.
County Loan Limits & Entitlement: How They Affect Buying Power
County loan limits don’t create a minimum income requirement — they affect structure, not affordability. With full entitlement, the VA does not impose a loan amount cap. With partial entitlement, county limits can affect how much you can borrow with $0 down because they affect guaranty math.
What to do early
- Retrieve your Certificate of Eligibility (COE) and confirm whether entitlement is full or tied up.
- If partial entitlement applies, have your lender calculate remaining entitlement and any down payment need.
- Re-run DTI and residual after any down payment change, because the payment is what affects approval.
2026 conforming baseline (reference)
- FHFA’s 2026 baseline conforming limit for 1‑unit homes is $832,750 in most counties.
- This number is used in conventional lending and influences VA entitlement math in partial-entitlement scenarios.
- Affordability still comes down to the payment, debts, and residual income.
VA Income Requirement FAQs
These are the most common income and underwriting questions VA buyers ask when planning around DTI, residual income, and tax‑free pay.
1) Is there a minimum income requirement for a VA loan in 2026?
No. VA does not publish a universal minimum income number. Lenders qualify you using income stability/documentation, your total DTI, and whether your residual income meets the guideline for your region and household size.
2) How do I calculate DTI for a VA loan?
Add up monthly debts (including the full housing payment: PITI + HOA), then divide by gross monthly income. Example: $3,100 total debts ÷ $7,000 gross income ≈ 44.3% DTI.
For the standard definition and examples, see the CFPB DTI explanation.
3) What is VA residual income?
Residual income is the monthly cash left after taxes, the full housing payment, and major debts are paid. VA publishes guideline minimums by region and household size, and lenders use them as a cash-flow safety test.
4) Which residual income guideline applies to me?
It depends on where the property is located (region) and your household size. The tables also differ by loan amount (≥ $80,000 vs ≤ $79,999). If your household size is above 5, VA typically adds a per-person amount up to a family size of 7.
5) Can I qualify with a DTI above 41%?
Often, yes — 41% is a benchmark, not an automatic denial line. Higher DTIs usually require stronger residual income and documented compensating factors. VA rules also note that if DTI is above 41% and residual income exceeds the guideline by at least 20%, a second-level review may not be required (see 38 CFR § 36.4340).
6) How does VA treat BAH, BAS, and VA disability income?
Many lenders count these when they’re documented and expected to continue. Because they’re often tax-free, lenders may apply a gross-up method for DTI. Documentation typically includes LES and/or award letters plus deposit history.
7) Does grossing up tax-free income increase residual income?
No. Gross-up is used for ratio testing (DTI). Residual income is based on real net cash flow after taxes and obligations. That’s why it’s smart to budget using the dollars you actually receive.
8) What debts count against me in VA underwriting?
Underwriting typically includes recurring monthly obligations: installment loans, minimum credit card payments, student loans, and court-ordered support you pay. Everyday costs like groceries are not part of DTI — they’re why residual income exists.
9) What if my residual income is below the guideline?
Approval gets harder when residual is low, especially if DTI is also high. The cleanest fixes are usually lowering the payment, paying off a recurring debt, increasing verified income, or building reserves so the file is safer.
10) How do county loan limits and entitlement affect zero-down buying power?
With full entitlement, VA does not impose a loan cap. With partial entitlement, county limits can affect guaranty math and may require a down payment above certain price points. Confirm your COE and have a lender run remaining entitlement early.
