VA Residual Income Chart: 2026 Requirements by Region and Family Size
How Much Residual Income Does a VA Loan Require?
VA residual income is the monthly money left after qualifying taxes, housing expenses, debts and other obligations. The VA minimum depends on region, household size and whether the loan is below $80,000 or at least $80,000. For loans of $80,000 or more, a family of four needs $1,003 in the South or Midwest, $1,025 in the Northeast, or $1,117 in the West. These are underwriting guidelines, not guaranteed approval thresholds. [1]
Verified against current 38 CFR 36.4340 and VA Lenders Handbook Chapter 4 · Educational estimates only
VA Residual Income Guide at a Glance
Select any card for the charts, examples and exceptions relevant to your loan.
Calculator
Find the required minimum by state, household size and loan amount, then estimate cash remaining after your verified expenses.
Use CalculatorResidual Tables
Both federal tables are included, plus regional assignments and larger-family adjustments.
2026 ChartsThe Formula
See the exact inputs for a lender-style worksheet and a sample month.
CalculationDTI vs. Residual
See when tax-free income affects DTI but cannot inflate residual cash.
DTI And IncomeHigh DTI Rule
Understand what the 120% threshold changes and what it does not.
120% TestMilitary Reduction
Check when base-facility access can reduce the chart guideline.
Military AdjustmentWho Counts
Apply household exclusions correctly and avoid an artificial family-size reduction.
Family SizeHousing And Debts
Maintenance estimates, child care, short-term debts and other obligations.
ExpensesExceptions
A shortfall or large housing increase needs a documented full-file analysis.
Weak FilesLoan Types
Learn why an IRRRL is treated differently from a cash-out refinance.
RefinancingReal Numbers
Four practical scenarios with calculated dollars, ratios and decision paths.
Worked ExamplesFAQs
Fast answers to the most-searched residual-income questions and special situations.
FAQsPassing the table does not ensure a loan approval; missing it does not automatically mean denial. VA requires the lender to analyze debt-to-income, residual cash, credit and compensating factors together.
VA Residual Income Calculator
Select your state, household size and loan-size category to see the published minimum. Expand the original calculator to estimate residual income from the same inputs used in a lender’s analysis.
VA Residual Income Calculator
Income
Taxes (actual withholding)
Housing
Monthly obligations
DTI gross-up (lender's figure)
The lender determines this percentage based on tax tables. It affects DTI only. Residual income always uses actual income. [36.4340(f)(4)]
Is Tax-Free Disability Income Included?
Yes. Count a verified and continuing VA disability benefit at the actual dollars received for residual income. A tax-free gross-up can be relevant to DTI but not to leftover cash. [36.4340(f)(4)]
Can a DTI Above 41% Qualify?
Potentially. If DTI is higher than 41%, the lender must evaluate the specified exceptions and review requirements. Having 120% residual income removes a particular second-level review requirement, not the lender’s credit decision. [36.4340(c)(2)-(3)]
Can Your Household Count Change?
Sometimes. Verified independent income not used in the loan analysis, or a non-borrowing spouse’s verified stable employment, can support reducing the number counted. Never assume everyone can simply be omitted. [36.4340(e)]
What Does the VA Handbook Emphasize?
VA underwriters examine repayment history, housing-payment changes, DTI and residual income together. [KnowVA · Ch 4, VA Pamphlet 26-7] High residual income helps, but does not erase unacceptable credit. [KnowVA · Ch 4, VA Pamphlet 26-7] Eligible active-duty/retired households may use a nearby-base reduction. [KnowVA · Ch 4, VA Pamphlet 26-7] Family size six or seven uses an additional member adjustment. [KnowVA · Ch 4, VA Pamphlet 26-7]
To put the table result into context, review How Much VA Loan Can You Afford and the two federal standards below. [36.4340(c)(3), (f)(4)] For a personalized analysis, the lender verifies documents rather than accepting calculator inputs as proof.
VA Residual Income Charts by Region and Family Size
The 2026 federal tables vary by loan amount. The relevant loan-size break is $80,000: use the higher table at $80,000 or more, or the lower table for $79,999 and below.
Loans of $80,000 or More
| 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 |
| 6 | $1,142 | $1,119 | $1,119 | $1,238 |
| 7 | $1,222 | $1,199 | $1,199 | $1,318 |
The minimum for a six-person household is the five-person amount plus $80, and for seven people plus $160. The handbook caps the table increment at a family of seven; ask the underwriter how an eighth household member affects the full-file assessment. [36.4340(e)(2)] [1]
Loans Below $80,000
| Family size | Northeast | Midwest | South | West |
|---|---|---|---|---|
| 1 | $390 | $382 | $382 | $425 |
| 2 | $654 | $641 | $641 | $713 |
| 3 | $788 | $772 | $772 | $859 |
| 4 | $888 | $868 | $868 | $967 |
| 5 | $921 | $902 | $902 | $1,004 |
| 6 | $996 | $977 | $977 | $1,079 |
| 7 | $1,071 | $1,052 | $1,052 | $1,154 |
For the smaller-loan chart, a six-person household adds $75 to the five-person figure, and a seven-person household adds $150. Do not use the larger-loan chart by default when the loan amount is genuinely below $80,000. [36.4340(e)(1)]
Which States Are in Each VA Residual Income Region?
| Region | States and territories |
|---|---|
| Northeast | CT, ME, MA, NH, NJ, NY, PA, RI, VT |
| 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, PR, SC, TN, TX, VA, WV |
| West | AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY |
VA places Puerto Rico in the South and Alaska and Hawaii in the West. Midwest and South share the same dollar amounts, but their official regional classification remains distinct. [36.4340(e)(3)] [1]
How to Calculate VA Residual Income
Residual income is actual, qualifying monthly income minus estimated taxes, the proposed housing expense, maintenance and utilities, and qualifying recurring obligations. It is a dollar amount, not a percentage of gross income.
What Goes Into Income?
Stable, documented taxable earnings, qualifying military allowances, disability compensation, retirement benefits and other eligible recurring income. If income cannot be verified or is unlikely to continue, the lender may exclude it.
What Gets Subtracted?
Estimated federal/state tax and Social Security/Medicare, principal and interest, taxes and insurance, applicable HOA dues, maintenance and utilities, installment/revolving debts, child support, childcare and significant job expenses.
VA Loan Analysis Worksheet: Sample Month
| Item | Monthly amount |
|---|---|
| Taxable wages | $5,900 |
| Qualified tax-free military/VA income | $1,200 |
| Total actual income | $7,100 |
| Federal, state and payroll taxes | − $1,050 |
| Principal, interest, taxes and insurance | − $2,100 |
| HOA / condo fee | − $100 |
| Maintenance and utilities, 1,750 sq. ft. × $0.14 | − $245 |
| Other recurring debts | − $550 |
| Childcare and documented job costs | − $200 |
| Residual income | $2,855 |
The arithmetic is $7,100 − $1,050 − $2,100 − $100 − $245 − $550 − $200 = $2,855. The South guideline for a family of four is $1,003, so this sample residual is about 285% of the guideline. The lender must still assess credit, DTI, loan structure and all actual obligations. A home-price affordability estimate is not interchangeable with a residual-income result. For deeper payment-ratio context, read Can My DTI Be Over 41% for a VA Loan?. This worksheet uses actual income; the separate Grossing Up VA Benefits treatment applies only to DTI.
Use stable monthly amounts supported by pay, LES, benefit or other records.
Use appropriate post-transaction withholding estimates, not arbitrary percentages.
PITI, HOA, assessment, flood insurance where required, utilities and maintenance.
Check the loan-size row, region, family size and any permitted military adjustment.
See the actual VA Form 26-6393 Loan Analysis and the lender’s breakdown before making a home-purchase commitment. A home must also satisfy VA Minimum Property Requirements, which is a separate condition from qualifying income.
Debt-to-Income Ratio Versus VA Residual Income
The 41% debt-to-income benchmark measures payments against gross monthly qualifying income. Residual income measures the spendable dollars left, so a file can be strong on one metric and weak on the other.
VA regulations instruct lenders to consider both standards, while allowing specifically documented exceptions. A favorable VA debt-to-income ratio does not automatically substitute for insufficient residual income. [36.4340(c)-(d)] [1]
Proposed monthly housing plus recurring debts divided by qualifying gross monthly income. A high ratio prompts additional scrutiny, not a blanket VA rejection.
Actual qualifying income minus specified expenses. A strong result supports the file but may not offset unacceptable payment history.
When credit is weak, a healthy residual margin is relevant, but it cannot automatically repair an unsatisfactory credit history. Review VA loan approval with bad credit alongside the credit analysis. [36.4340(c)(4)]
Does Tax-Free Income Change the 41% Test?
Yes, but only as the rules allow. VA instructs lenders to note a ratio elevated solely by qualifying tax-free income, since the borrower may retain more cash after taxes. This is not permission to omit debts. [36.4340(c)(2)]
Actual Income For Residual
A Veteran receiving $2,000 in verified monthly disability compensation puts $2,000 into the residual-income worksheet, without grossing it up.
Qualified Gross-Up For DTI
The VA handbook discusses 125% of the tax-free income as a gross-up factor, subject to verification and tax guidance. For example, $2,000 × 1.25 = $2,500 for DTI analysis, but not as monthly cash available for residual.
The regulation allows adjustment to a pre-tax equivalent using tax tables, while the VA handbook describes a 125% factor. The lender determines proper treatment and documents the calculation. [36.4340(f)(4)] See Grossing Up VA Benefits for the borrower-specific steps. [2]
What Does 120% of VA Residual Income Mean?
When DTI exceeds 41% and verified residual income is at least 20% above the applicable minimum, 38 CFR 36.4340(c)(3) removes the otherwise applicable second-level review and written justification requirement. It does not guarantee approval.
For a South-region family of four with a $1,003 minimum, the 120% threshold is $1,203.60 ($1,003 × 1.20). A residual result of $1,250 exceeds that benchmark, while a result of $1,180 does not. [36.4340(c)(3)] [1]
DTI at or Below 41%
The lender applies ordinary financial and credit review. Residual below guideline may require supervisory justification, even with a DTI below the benchmark.
DTI Above 41%, Residual at 120%+
The specific supervisory review and written justification otherwise triggered by the DTI benchmark are not required under the regulation. Underwriting still applies.
DTI Above 41%, Residual Below 120%
The lender may need stronger compensating factors and supervisory justification, with overall acceptability determined by the complete file and any lender policies.
Who Qualifies for the 5% Military Residual Reduction?
The VA permits at least a 5% reduction in the published residual guidelines for certain active-duty servicemembers and military retirees when qualifying ongoing access to facilities on a nearby military base is documented.
The rule depends on the expected continued benefit of using nearby-base facilities, not merely on possessing a military ID. The same conditional adjustment applies to both federal loan-size tables. [36.4340(e)(4)] [1]
Rounded to a whole dollar for a practical comparison, that is about $953, but the lender should document the precise amount it uses. A retired Veteran living far from qualifying facilities should not assume a reduction applies automatically. An active-duty borrower should provide orders or other proof of base access as requested.
Potentially Qualifying
Active-duty borrower or military retiree with documented reasonable ongoing access to qualifying facilities on a nearby base.
Not Automatically Qualifying
Veteran without the qualifying active-duty or retiree status, or a household that cannot document continued use of nearby-base benefits.
How VA Calculates Family Size for Residual Income
The VA family count generally includes everyone supported by the borrower’s income, even if a spouse is not on the loan and even if a child is a stepchild or other household dependent.
VA counts non-borrowing spouses and other dependents unless a regulatory exclusion is supported by documented facts. A lender should not automatically copy the number of mortgage applicants into the household-size field. [36.4340(e)] [1]
Usually Counted
Borrower, a financially dependent spouse, children, dependent stepchildren and other people relying on the borrower for financial support. Disclose recurring childcare costs, including those documented under VA loan child care letter requirements.
Possible Reductions
A non-obligated spouse with verified stable and reliable employment may be omitted; verified independent income not used in the loan analysis may justify reducing the number of dependents counted. The lender documents the basis.
Example: a Veteran supports a spouse and two children, normally a family of four. If a non-borrowing spouse has verified stable employment meeting the rule, the lender may consider excluding the spouse, but must still assess other liabilities as required. [36.4340(e)] [2]
What About a Household of Eight?
The federal tables give numerical add-ons only through a family of seven. The VA handbook’s family-of-eight example uses the seven-person capped figure, while actual dependents and expenses still matter to the lender’s full analysis. An online calculator displaying “8+” should not be mistaken for a separate federal eight-person table.
Which Expenses Reduce Your Residual Income?
A VA residual-income calculation includes more than the principal-and-interest payment. It also needs property taxes, insurance, dues, maintenance, utilities and relevant monthly obligations.
38 CFR 36.4340(i) requires realistic estimates considering property age, type, location and expected charges. The VA Lenders Handbook instructs completing the loan-analysis worksheet using $0.14 per square foot of gross living area for combined maintenance and utilities. For a 2,000-square-foot home, that is $280 per month. [36.4340(i)] [2]
Housing Charges
Proposed principal and interest, property taxes, hazard and applicable flood insurance, HOA or condo assessments and any expected assessment increases.
Living And Job Obligations
Childcare, support payments, significant commuting or direct job costs, along with lender-verified installment/revolving payments.
Real Property Maintenance
The handbook’s $0.14 per square foot uses appraisal gross living area, not a home’s marketing figure including an unfinished basement or garage.
Can a Debt With Fewer Than 10 Months Remaining Be Excluded?
Not automatically. Short-term obligations can be treated differently, but the regulation requires debt payments with a severe impact on family resources to be considered regardless of their remaining term. A $300 monthly car obligation with just five payments left can still materially affect qualifying cash flow. [36.4340(g)(9)] [1]
| Expense | Typical treatment | Borrower action |
|---|---|---|
| Child support paid | Obligation deducted | Supply court order and payment history |
| Childcare | Job-related cost generally reviewed | Document ongoing payment and arrangement |
| Auto payment | Significant obligation may count even under 10 months | Ask lender whether payoff changes analysis |
| HOA / condo fee | Included in housing obligations | Obtain current statement and anticipated changes |
| Insurance and taxes | Estimated with proposed home | Use realistic quotes, not just seller’s prior bill |
| Maintenance / utilities | VA worksheet convention plus realistic review | Verify gross living area and lender amount |
What Happens When Residual Income Is Low or Housing Costs Rise?
A shortfall calls for a documented look at credit, payment history, existing reserves, available income and the size of the new housing payment. Depending on the DTI and circumstances, VA allows specific supervisory-approval paths.
Under the regulation, a much larger payment than the borrower currently makes deserves scrutiny, particularly if the borrower did not build savings at the lower payment. The same concern applies when the loan appears affordable only by disregarding real household costs. [36.4340(c)(5)(vii), (e)] [1]
Compare lender-calculated residual with the right region, household size and loan-size threshold.
Confirm tax assumptions, loan payment, HOA dues, support obligations and qualifying income.
Pay down applicable debts, adjust home price, reduce housing expense or document stable eligible income.
Evaluate reserves, strong credit, low consumer debt and limited shelter-payment shock when relevant.
VA lists recognized VA Loan Compensating Factors. Some may support review where residual or DTI is marginal, but ordinary satisfaction of a program minimum is not a special strength, and factors cannot substitute for unacceptable credit. For complex or AUS Refer cases, review VA Manual Underwriting. [36.4340(c)(5)-(6)] [2]
Does VA Residual Income Apply to Refinances?
Standard purchase and VA cash-out refinances generally undergo residual-income and DTI analysis. An eligible VA Interest Rate Reduction Refinance Loan, or IRRRL, normally does not use those same Chapter 4 underwriting standards.
38 CFR 36.4340(a) exempts qualifying IRRRLs from the residual and DTI standards in paragraphs (c) through (j), with an exception for cases requiring VA prior approval. A delinquent IRRRL or particular lender policy can introduce extra review. [36.4340(a)] [1]
The lender examines qualifying income, debts, residual income, credit and the transaction. Review VA cash-out refinance requirements.
An eligible Interest Rate Reduction Refinance Loans (IRRRLs) transaction usually avoids the standard residual-income worksheet; delinquency and investor requirements can change processing.
As with a purchase, closing expenses affect total affordability. Compare the VA Loan Fee Auditor and do not mistake a smaller principal-and-interest payment for guaranteed lifetime savings.
Four VA Residual Income Examples With Real Numbers
These four educational cases show how loan size, family size, high DTI, military adjustments and outstanding debt interact. They illustrate calculations, not lender decisions or statistical approval rates.
Example A: First-Time Buyer With Strong Margin
South, family of three, $350,000 loan. Actual monthly qualifying income $6,500; taxes $975; PITI $1,800; HOA $100; maintenance $252; debts $450. Residual: $2,923. Minimum $889, or approximately 329%. DTI is ($1,800 + $100 + $450) ÷ $6,500 = 36.15%. Both benchmarks are met, but property, credit and documentation still matter.
Example B: High DTI, Ample Residual
West, family of four, $400,000 loan. Actual qualifying income $6,600, including $800 tax-free; taxes $870; PITI $2,400; HOA $75; maintenance $280; other debts $750. Residual: $2,225. Minimum $1,117; 120% test $1,340.40. DTI = $3,225 ÷ $6,600 = 48.86%. The 120% exception is met, but approval still requires the entire file.
Example C: Qualifying Military Household
South, family of five, $310,000 loan. Actual income $5,200; taxes $780; PITI $1,600; maintenance $238; car/card payments $375. Residual is $2,207. Standard minimum $1,039; if the nearby-base rule applies, reduced minimum $987.05. DTI = $1,975 ÷ $5,200 = 37.98%. The reduction should be documented, not assumed.
Example D: Paying Off a Car Loan
Northeast, family of four, $290,000 loan. Income $4,800; taxes $720; PITI $1,700; HOA $200; maintenance $350; car $450; cards $125. Residual is $1,255, or 122.4% of the $1,025 minimum; DTI is 51.56%. Paying off the car with $2,700 cash raises residual to $1,705 and lowers DTI to 42.19%. Critically, the original case was already above the 120% test before payoff; payoff improves capacity but does not newly create that waiver.
Disabled Veteran Or Tax-Free Income
A disability-compensation recipient may have lower actual tax deductions and use verified disability income in full at its actual amount. The DTI gross-up does not increase residual dollars and funding-fee exemption is a separate benefit, if eligible.
Surviving Spouse Or Repeat VA User
If eligible for the VA program, the surviving spouse still faces financial underwriting on a standard purchase. An existing VA loan, another mortgage or a new cash-out refinance can change monthly obligations, even when entitlement is available.
The first example is consistent with the federal How Much VA Loan Can You Afford framework, but a shopper should use current VA closing cost estimates and the property’s full monthly payment before choosing a price range. The purchase price alone is insufficient. A borrower should also understand why VA loans do not charge monthly PMI and how that changes the proposed payment.
Frequently Asked Questions About VA Residual Income
The VA chart is only one underwriting checkpoint. These answers address common questions about tax-free income, family members, maintenance, debt, refinancing and missed guidelines.
Does VA disability compensation count as residual income?
Yes. Qualifying verified disability compensation can be counted at the actual monthly payment amount. It is not grossed up in the residual calculation. [36.4340(f)(4)]
Does an unborn child count in VA residual income?
The federal rule counts household members and those supported by the borrower, but does not give a separate chart category for an expected baby. Disclose anticipated changes and ask the lender to determine the household count at underwriting and closing. [36.4340(e)]
Can a non-borrowing spouse be left out of family size?
Sometimes. A spouse not liable on the loan may be excluded from the count when the lender verifies stable and reliable employment, subject to the facts and other applicable liability rules. [36.4340(e)]
Can Basic Allowance for Housing count toward residual income?
Yes, qualifying and continuing BAH can count at the actual verified amount. It may be eligible for DTI gross-up separately, but the residual-income input remains the real payment. [36.4340(f)(4)]
How are deferred student loans handled?
The lender must evaluate student loans under current VA debt guidelines and the loan’s documented repayment terms. Do not treat deferment alone as proof the payment is zero, and account for any amount the lender includes in monthly obligations. [36.4340(g)(9)]
Does a car loan with eight payments left count?
It may. Debts with fewer than 10 months remaining can still be material if the payment significantly affects available cash. Ask about documenting the remaining obligation and the lender’s treatment before assuming exclusion. [36.4340(g)(9)]
Is there a 5% residual reduction for military households?
Yes, subject to the continued nearby-base-facility benefit and qualifying active-duty or military-retiree status. It is not a blanket reduction for all Veterans. [36.4340(e)(4)]
Do VA residual income rules apply to IRRRLs?
Ordinarily not for an eligible streamlined IRRRL, but special cases requiring prior VA approval and lender requirements can result in further assessment. Standard cash-out refinancing uses full underwriting. [36.4340(a)]
What happens if my residual income is below the VA chart?
It is a significant underwriting weakness, not an automatic federal denial. If DTI is 41% or less, the regulation permits a documented supervisor-justified approval route; if the overall file is weak, the lender may decline. [36.4340(c)(1), (c)(4)]
How much residual income does a family of four need in 2026?
For loans of $80,000 or more: Northeast $1,025; Midwest $1,003; South $1,003; West $1,117. For loans below $80,000: Northeast $888; Midwest $868; South $868; West $967.
What is the VA maintenance and utilities formula?
The VA Lenders Handbook Chapter 4 instructs $0.14 per square foot of appraised gross living area monthly for the loan-analysis worksheet. A 1,800-square-foot home produces $252. The federal regulation still requires reasonable shelter-cost consideration.
Does a 41% DTI guarantee VA loan approval?
No. The 41% benchmark and residual income are only two factors, and a lender must also approve credit, stable income, obligations and the proposed property.
Does VA residual income have a maximum guaranteed amount?
No. The published chart establishes guideline minimums for underwriting, not a maximum income, maximum residual cash amount, or promise of loan guaranty.
Is FHA residual income the same as VA residual income?
No. Do not use a VA family-support table as an FHA underwriting chart. These are separate federal mortgage programs with different policies and documentation requirements.
Where can I get an official VA residual income PDF?
Use VA Lenders Handbook M26-7 Chapter 4, Topic 9 and current 38 CFR 36.4340. The official table appears in both documents, but the electronic regulation is the current legal reference.
Does the calculator count as my VA preapproval?
No. It is an educational estimate. A lender must verify income, credit, monthly debts, household size, entitlement and property details before issuing a loan decision.
Sources and Verification Method
The two chart tables and region assignments were checked against the eCFR version current November 2, 2026. Underwriting guidance was checked against VA Lenders Handbook Chapter 4, including its August 2026 update.
- 38 CFR 36.4340: Current underwriting and residual-income tables ↗
- VA Lenders Handbook M26-7, Chapter 4: Credit Underwriting (KnowVA) ↗
- VA Lenders Handbook Chapter 4, official reference PDF ↗
- VA M26-7 Change 47, August 24, 2026 ↗
- VA Form 26-6393, Loan Analysis ↗
Figures are regulatory guideline amounts, not a prediction of a lender decision. Worked examples use hypothetical finances and do not represent actual borrower results, mortgage quotes or VA approval rates.
Confirm Your Residual Income Before You Make an Offer.
Use the official chart and calculator to prepare. Then have a VA lender review qualifying income, realistic property expenses, DTI and the complete credit file.