VA residual income, explained
The VA checks how much money your household has left each month after housing costs, debts and taxes. Here's how it works and the 2026 minimums for our states.
Written by the FLO Mortgage team · Licensed mortgage broker, NMLS #1835856 · Updated October 2026
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At a glance
- A VA-only affordability test
- Set by family size, loan amount and region
- FL, GA, NC, TN, TX in the South region
- 41% debt-to-income benchmark
Talk with a licensed loan officer
Qualifying
Residual income is a VA-specific test that sets VA loans apart. Instead of relying only on a debt-to-income ratio, the VA checks how much money your household has left each month after the big bills are paid. It's one reason VA loans have strong long-term performance, and understanding it helps you know what you can afford before you shop.
How residual income is calculated
Your lender starts with your gross monthly income and subtracts:
- Federal, state and Social Security taxes on your income
- Your new house payment: principal, interest, property taxes, homeowners insurance and any HOA dues
- Monthly debts on your credit report, such as car loans, student loans, cards and child support
- Estimated maintenance and utilities, based on the home's square footage
- Childcare costs, when applicable
What's left is your residual income, which must meet the VA's minimum for your family size and region.
Minimum residual income: loans of $80,000 or more
For FLO Mortgage's six states, the amounts are the same: Florida, Georgia, North Carolina, Tennessee and Texas use the South table, and Michigan uses the Midwest table, which match at this loan size.
| Family size | South and Midwest |
|---|---|
| 1 | $441 |
| 2 | $738 |
| 3 | $889 |
| 4 | $1,003 |
| 5 | $1,039 |
| Each additional | +$80 |
Source: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 4. Smaller loan amounts use a separate, lower table.
Ways to strengthen your numbers
- Pay down or pay off a monthly debt before applying
- Include all eligible income, such as VA disability compensation, which is tax-free
- Look at homes with lower taxes, insurance or HOA dues
- Ask about a co-borrower if a spouse has income
Questions, answered
What is VA residual income?
It's the money left each month after your mortgage payment, taxes, insurance, debts, estimated utilities and maintenance, and taxes on income. The VA sets minimums by family size, loan amount and region to make sure you can comfortably afford the home.
What region is Florida in for VA residual income?
Florida, Georgia, North Carolina, Tennessee and Texas are in the VA's South region. Michigan is in the Midwest region. For loans of $80,000 or more, the South and Midwest tables use the same amounts.
What happens if my debt-to-income ratio is over 41%?
The VA looks more closely. Your residual income generally needs to exceed the required amount by at least 20%, unless your excess income comes largely from tax-free sources.
Who counts as family size?
Everyone in the household who depends on the household income, including you, a spouse and children. A spouse with income still counts as a family member.
More VA loan guides
- VA home loans overview
- VA loan questions, answered
- VA loan tools and calculators
- VA home buying roadmap
- VA loans for first-time buyers
- VA loans for active duty
- VA loans for Guard and Reserve
- VA appraisals and property requirements
- VA closing costs and seller concessions
- VA occupancy rules
- VA entitlement and second VA loans
- Assumable VA loans
- VA condos and property types
- VA manual underwriting
- Disabled veteran property tax exemptions
- VA streamline refinance (IRRRL)
- VA cash-out refinance
- VA funding fee exemption
- VA loans for surviving spouses
- VA loans after bankruptcy or foreclosure
Local VA loan help
Talk to a FLO Mortgage loan officer
Every FLO loan officer helps veterans, service members and military families with VA loans. Have a question these guides don't answer? Ask our team.
This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, property eligibility and program availability. Lender requirements may be stricter than the program guidelines described here. Not all applicants will qualify. Figures reflect 2026 VA guidelines and may change without notice. FLO Mortgage is licensed in Florida, Georgia, Michigan, North Carolina, Tennessee and Texas. Company NMLS #1835856. Equal Housing Opportunity. FLO Mortgage is not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. Licensing & Disclosures.
Local, licensed help
Talk a VA loan through with a FLO loan officer
Every FLO Mortgage loan officer can walk you through this program, run the numbers for your situation and compare it with your other options. Have questions? Call our main office at (386) 882-9980.
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