Joshua Payne · VA Mortgage Advisor

VA Residual Income Calculator

See where you stand on VA residual income and DTI, using the same math a lender runs.

Home Loan Details

Home Purchase Price iThe purchase price of the home you are buying, before any down payment. $

Down Payment % iThe percent you are putting down. VA loans allow 0% down. More down also lowers the funding fee. First use: 2.15% under 5% down, 1.5% at 5%, 1.25% at 10% or more. Subsequent use: 3.3% under 5%, then the same 1.5% and 1.25%.

Interest Rate iYour quoted annual interest rate. No quote yet? Use a current market estimate for a realistic payment. Check daily rates to get a good average. Click here.

Loan Term iThe loan length in years. Most buyers use 30 years. Shorter terms mean a higher payment and less total interest.

yrs

Home Square Footage iThe finished living area in square feet. It estimates monthly maintenance and utilities at $0.14 per square foot, currently $280.00/mo, used in the residual calculation.

Usage iFirst Use means this is your first time using your VA loan benefit. Subsequent Use means you have used it before, which raises the funding fee unless you are exempt.

Service Related Disability (10+%)? iChoose Yes if you receive VA disability for a service connected rating of 10% or higher. Yes waives the VA funding fee.

Funding Fee

$7,525

Loan Amount

$357,525

Principal & Interest

$2,259.80/mo

Monthly Housing Costs

Property Taxes (auto) iEstimated from the price at about 2.2% per year. Replace it with the real amount from a tax bill or listing if you have it. $

Homeowner's Insurance (auto) iEstimated from the price at about 0.5% per year. Replace it with a real quote if you have one. $

HOA Dues iMonthly homeowners association dues, if the property has an HOA. Leave it at 0 if there is none. $

Other (flood insurance, etc.) iAny other monthly housing cost, such as flood insurance or a special assessment. Leave it at 0 if none apply. $

Monthly Income, Taxes and Debts

Gross Monthly Income (incl. BAH/BAS) iTotal monthly income before taxes. Include base pay, BAH, BAS, and steady income like VA disability or compensation, Social Security, and retirement pay. Put rental or side income under Other Income. $

Monthly Income Taxes (Fed/State/Local) iNon-taxable income such as BAH, BAS, Social Security, or VA disability is not taxed for residual income. Enter the full amount as income above, but only enter the taxes on your taxable income here. $

Recurring Monthly Debts iThe total minimum monthly payments for the debts that show on your credit report. Use the minimum due, not what you actually pay. For example: a mortgage, an auto loan, a credit card, a personal loan, or a student loan. $

Other Income (rental, etc.) iExtra monthly income such as rental, part time, or self employment. If you use rental income from a multi unit property you plan to buy, only 75% of the total rent can be counted. Example: $2,500 in rent counts as $1,875. $

Household

Region iThe region where the property is located. It sets the VA residual income requirement along with family size.

Family Size iThe number of people living in the home, or who will live there once you move in. Include yourself, your spouse, and all dependents.

Childcare iThe monthly amount you pay to care for children 12 and under while you work or are away, such as daycare, after school care, or a sitter. Enter your monthly total, or 0 if none. $

South: AL, AR, DE, DC, FL, GA, KY, LA, MD, MS, NC, OK, SC, TN, TX, VA, WV

PASS

Surplus of $1,169.10/mo

Calculated Residual Income

$2,372.70

Required VA Residual Limit

$1,203.60

Base: $1,003.00 (South, family of 4, loan of $80k or more)
+20% cushion applied (DTI over 41%)

Debt to Income (DTI) Ratio iVA loans lean on residual income more than DTI, so there is no hard DTI cap. DTI is your monthly housing payment plus debts divided by income. As DTI climbs the VA wants more cushion: once it passes 41%, the required residual income jumps 20%, so a higher DTI means you need more left over each month to still qualify.

48.63%

48.6% used41% threshold

Total Monthly Payment

$3,047.30

Principal, interest, taxes, insurance, HOA, and other

VA Loan Resource Center

You ran the numbers. Now get the full guide.

My complete VA Home Loan guide walks through eligibility, entitlement, funding fees, residual income, and closing, so you know exactly what to expect.

Download the Full VA Guide Book a Free Consultation

This residual income analysis is one part of VA qualification, not a full approval. A file that passes here can still be denied for other reasons such as credit, payment history, or lender overlays. Use it as an estimate and example, not a guarantee that you qualify.