VA Residual Income Chart Guide

Introduction to VA Residual Income

The Department of Veterans Affairs (VA) uses a residual income chart to determine whether a veteran can qualify for a VA loan. This chart takes into account the veteran’s gross income, family size, and the region they live in to determine if they have enough residual income to qualify for a mortgage. In this guide, we will explore the VA residual income chart in detail and provide a step-by-step guide on how to use it.

Understanding the VA Residual Income Chart

The VA residual income chart is a table that lists the minimum residual income requirements for veterans based on their family size and region. The chart is divided into different regions, each with its own set of residual income requirements. The regions are determined by the cost of living in each area, with higher-cost areas requiring higher residual income.

How to Use the VA Residual Income Chart

To use the VA residual income chart, you will need to follow these steps: * Determine your family size: This includes the veteran, their spouse, and any dependents. * Determine your region: The VA divides the country into different regions, each with its own set of residual income requirements. * Calculate your gross income: This is your total income before taxes and deductions. * Calculate your residual income: This is your gross income minus your debt payments, including your proposed mortgage payment, credit cards, and other debt obligations.

VA Residual Income Chart Requirements

The VA residual income chart requires that veterans have a minimum amount of residual income each month. This amount varies based on family size and region. For example: * A veteran with a family of four living in the northeastern United States would need to have a residual income of at least 1,025 per month. * A veteran with a family of two living in the southern United States would need to have a residual income of at least 907 per month.

Table of VA Residual Income Chart

Family Size	Northeast	Midwest	South	West
1	821</td> <td>749	703</td> <td>825
2	961</td> <td>873	807</td> <td>971
3	1,073</td> <td>985	907</td> <td>1,093
4	1,182</td> <td>1,092	1,025</td> <td>1,210
5	1,291</td> <td>1,201	1,136</td> <td>1,324

💡 Note: These figures are subject to change, and you should check with the VA for the most up-to-date information.

Benefits of Using the VA Residual Income Chart

The VA residual income chart provides several benefits to veterans, including: * Easy qualification: The chart makes it easy for veterans to determine whether they qualify for a VA loan. * Accurate calculations: The chart ensures that veterans have enough residual income to afford their mortgage payments. * Regional considerations: The chart takes into account the regional cost of living, ensuring that veterans in higher-cost areas have enough residual income to afford their mortgage payments.

Common Mistakes to Avoid

When using the VA residual income chart, there are several common mistakes to avoid, including: * Incorrect family size: Make sure to include all dependents in your family size calculation. * Incorrect region: Make sure to select the correct region based on your location. * Incorrect gross income: Make sure to include all sources of income in your gross income calculation.

Conclusion

In summary, the VA residual income chart is a valuable tool for veterans who are considering purchasing a home using a VA loan. By following the steps outlined in this guide and using the chart to determine their residual income, veterans can ensure that they have enough income to afford their mortgage payments. Whether you are a first-time homebuyer or a seasoned veteran, the VA residual income chart is an essential resource to help you navigate the homebuying process.