Credit Card Center Advertiser Disclosure

Posts: 16
Registered: ‎02-01-2012
0 Kudos

Can someone help me with residual income for a VA loan?

We are pre-approved for a VA loan and are waiting to hear backabout an offer we put in today. I'm on pins and needles waiting!! Anyhow, we are only able to use my husband's income as I am self employed and have been for less that two years.  Without my income, our dti is on the high side at about 46% with our new proposed mortgage. I am living in fear that our residual income isn't adequate! WITh our family size and the region we live in, our residual incomedeeds to be 1062. I believe we are okay there, but will someone calculate it for me because I'm so afraid I am doing it wrong. Lol. 


Monthly income: 6200

Reoccuring debt: $1378 (small school loan, small credit card balance, and my husband's child support)

Proposed mortgage: $1500


I divided the $6200 by .80 (on the high side but I wanted to be safe), and got $4960. Subtract the $1378 for the reoccurring debt, that's $3582. Lastly, subtracting the proposed mortgage of $1500, I have $2082. Is that all there is to the residual income guidelines? If so, we are definitely more than okay. Smiley Happy 


Thank you! In all my years of lurking, I have learned a TON here!

Posts: 16
Registered: ‎02-01-2012
0 Kudos

Re: Can someone help me with residual income for a VA loan?

Oh, and the proposed mortgage is actually the full piti payment.

Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0 Kudos

Re: Can someone help me with residual income for a VA loan?

[ Edited ]


Residual Income Can Overcome High "Back-End" Ratio

Like other mortgage program, VA loans consider an applicant's "backend ratio"; the VA's maximum allowable debt-to-income ratio is 41 percent. However, veterans whose DTI exceeds 41% are not necessarily denied for a VA loan. The VA allows for an exception.

If you are a VA applicant and your DTI exceeds 41 percent, so long as your residual income is 120% of the stated guideline, your DTI will be ignored. For a real-life example, a VA borrower in Ohio with a family of 4 whose DTI exceeds 41% would need to show residual income of $1,203 to satisfy the VA and its underwriters.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!

Take the myFICO Fitness Challenge

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.