It’s a common misconception that in order to get a mortgage, you need to meet a minimum income requirement. Actually, no major loan program has a dollar-amount-based floor below which you can’t get a home loan. Instead, it really comes down to making sure you earn enough money to afford the mortgage you want to get.

The Department of Veterans Affairs (VA) approaches affordability from a specific angle. When you want to get a VA loan, you usually need to satisfy the VA’s residual income requirement. 

So if you’re trying to find out what kind of income you need with a VA loan, understanding how that eligibility criteria works is key. And you’re in the right spot to do just that. Here’s what borrowers need to know about VA loan residual income requirements. 

Residual income: How the VA checks for affordability

When the VA says “residual income,” they mean the amount of money you have left over each month after you pay everything for which you’re financially responsible. Basically, they’re trying to find out how much is still in your pocket after you cover your potential mortgage, taxes, and other debts you have (e.g., car loan, student loan). 

The amount of residual income you need depends on three factors:

• What state you want to buy in
• Your household size
• How much the house you want to buy costs

The VA’s regulation is a bit outdated here because it breaks the third criteria into two categories: houses that cost more than $80,000 and houses that cost less. Since the vast majority of houses across the country cost more than $80,000 in 2026, we’ll assume you fall in that bucket. If your house costs less than that, your residual income requirements will be slightly lower. 

From there, understanding a VA loan’s residual income requirement comes down to pinpointing what region you want to buy in. To help there, here’s a quick breakdown:

Once you know what region you’re in, you can use this table to figure out how much residual income you need to qualify for a VA loan:

To recap, there’s no minimum income requirement with a VA loan, but you do typically need to have enough residual income to get above the threshold we just outlined. 

Even then, the VA says that insufficient residual income shouldn’t be enough to trigger an outright denial for your mortgage application. Instead, the lender is supposed to look at all of your financial factors. If you’re under the residual income minimum but you have a lot in savings, for example, you might still be able to get approved. 

Calculating residual income

Fortunately, figuring out if you have enough money left over only requires some simple subtraction. To calculate your residual income, take your gross monthly income (how much you earn before taxes), then subtract:

• The potential mortgage payment (this calculator can help you get an estimate)
• Any other debts you pay monthly, like a car payment, student loan, or credit card bill
• Taxes you pay monthly, like the amount that comes from your payment for Social Security and Medicare (if you’re not sure, estimate 25% of your gross income here)

If you like seeing that all in one calculation, here it is for VA loan residual income:

Gross monthly income – mortgage payment – other debts – taxes = Residual income

Spouses and residual income

With a VA loan, you might be worried that only the veteran or active-duty service member’s income counts. Fortunately, if you’re buying with a spouse or partner and they make money, there’s a way to add that into the pot, too.

For that to work, you need to list them on the VA loan as a co-borrower. That means you apply for the mortgage together. As co-borrowers, both of your income goes toward the total that your household earns. That means a bigger number, which makes it easier to meet the VA’s residual income requirement. 

Income and qualifying for a VA loan

As we mentioned before, residual income isn’t necessarily a make-or-break eligibility criteria. Sometimes, you can still get approved for a VA loan even if you don’t have the right amount of money left over each month. 

Another factor lenders consider when deciding if they should approve your loan application is  your debt-to-income (DTI) ratio. This measures how much of your gross monthly income goes toward debts, including your potential mortgage payment. We’ve got a DTI calculator to help you figure out where you fall. If you can get below 41%, you can probably get approved for a VA loan.  

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When deciding to deny or approve your VA loan application, lenders look at the big picture. They consider your residual income, your DTI ratio, the house you want to buy, and a number of other factors. So there’s no hard-and-fast minimum income requirement. 

All of that said, if you can show that you’re above the residual income threshold for your area and have a DTI ratio below 41%, you’re more likely to get approved. Just as importantly, a better-looking financial profile helps get a lower VA loan rate.

We can help there, too. With our live mortgage rate tables, you can compare what VA lenders are offering today. This helps you find the right mortgage offer for your unique financial situation.