Complete residual income analysis per VA Lender Handbook (VAP 26-7). Enter your military pay details, target home price, and household info to see your full VA qualification picture.
Military Pay
Dependency Status
Target Home & Loan
Loan Term
VA Funding Fee
Household & Status
Component
Monthly Debts & Obligations
Include all recurring debts — both borrowers if co-borrower is included.Monthly Income Taxes
VA Residual Income Analysis
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Calculator estimates only. Per VA Lender Handbook VAP 26-7, Chapter 4. Tax estimates apply to basic pay only; BAH, BAS, and VA disability are not taxable. Gross-up adjustment reflects non-taxable income inflated for DTI qualifying. Verify all figures with your LES and lender. Contact Bryce Pierce for an official pre-qualification.
VA Residual Income is the money left over each month after paying your mortgage (PITI), all other debts, estimated taxes, and maintenance/utilities. It represents your actual spending power for food, clothing, transportation, and other living expenses.
Unlike conventional loans that focus primarily on DTI ratio, the VA uses residual income as the primary qualifying metric. A borrower with a high DTI ratio can still be approved if their residual income is strong enough to support the family’s needs.
Residual Income = Gross Monthly Income − PITI − Monthly Debts − Maintenance & Utilities − Income Taxes
If the back-end DTI exceeds 41%, the borrower must have residual income at least 20% above the table requirement to receive an underwriting recommendation. This is unique to VA loans and often allows approvals that conventional loans would deny.
Borrowers currently on active duty receive a 5% reduction in the required residual income amount, recognizing that active-duty members receive additional non-monetary benefits (housing, commissary access, etc.).
Reference: VA Lender Handbook, VA Pamphlet 26-7, Chapter 4, Section 3 — Residual Income Analysis. Published by the Department of Veterans Affairs.
For loan amounts of $80,000 and above — per VAP 26-7, Chapter 4
| Household 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 or more | $1,222 | $1,199 | $1,199 | $1,318 |
ⓘ Borrowers on Active Duty receive a 5% rebate on the above values.
Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont
Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin
Alabama, Arkansas, Delaware, Washington DC, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia, West Virginia
Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming
Source: VA Lender Handbook, VA Pamphlet 26-7, Chapter 4 — Residual Income Tables.
When BAH, BAS, or VA disability are grossed up by 25% for DTI qualifying purposes, they inflate the gross qualifying income used in Step 1. However, this 25% premium was never actually received as cash — it’s a lender convention to give credit for the tax-free nature of these allowances.
To correctly reflect actual cash available for living expenses, the residual income calculation must back out this difference. The adjustment equals:
Adjustment = (BAH × 25%) + (BAS × 25%) + (Disability × 25%)
This amount is added to the tax deductions column (Step 5), ensuring residual income reflects real take-home money — not phantom qualifying income. Without this correction, residual income would be overstated.
Reference: VA Lender Handbook VAP 26-7, Chapter 4 — Income from non-taxable sources and gross-up treatment for residual income purposes.