VA residual income is the money your household has left each month after the new house payment, taxes and other monthly debts. The VA residual income chart sets a minimum for that leftover money by region and family size. On a loan of $80,000 or more, a family of four needs $1,003 a month in the Midwest or South. In the Northeast it’s $1,025, and in the West $1,117.
Those numbers come from the VA’s own regulation, 38 CFR 36.4340. A VA lender checks them alongside your debt-to-income ratio. So your loan officer runs your actual numbers.
Here’s the full chart, which region you’re in, who counts in your household, how the figure is worked out, and what happens if your household falls short.
What Is VA Residual Income?
Under the VA’s underwriting regulation, 38 CFR 36.4340, residual income is the money a household has left each month for everyday living costs. It’s what remains after the new house payment and its related costs, income taxes and other monthly debts are paid. It’s a dollar amount, not a percentage.
The regulation uses those figures to decide whether the leftover money is “adequate to meet living expenses after estimated monthly shelter expenses have been paid”. So the test looks at what’s left, not at what comes in.
The dollar amounts come from a federal spending survey. The regulation points to data from the Bureau of Labor Statistics’ Consumer Expenditure Survey.
VA.gov’s purchase loan page says a borrower has to meet the VA’s and the lender’s “standards for credit, income, and any other requirements”. So residual income is one of the income tests a VA lender applies.
What Does the VA Residual Income Chart Require?
The chart sets a minimum monthly amount by family size and region. One table covers loans of $80,000 and above. A second, lower table covers loans of $79,999 and below. A bigger household means a higher number, and so does a home in the West region.
| Family size | Northeast | Midwest | South | West |
|---|---|---|---|---|
| 1 | $450 | $441 | $441 | $491 |
| 2 | $755 | $738 | $738 | $823 |
| 3 | $909 | $889 | $889 | $990 |
| 4 | $1,025 | $1,003 | $1,003 | $1,117 |
| 5 | $1,062 | $1,039 | $1,039 | $1,158 |
Some households run larger than five people. For loans of $80,000 and above, the regulation says to “add $80 for each additional member up to a family of seven.” So a family of six in the South on a loan of $80,000 or more needs $1,039 plus $80, or $1,119.
Loans of $79,999 and Below
A loan of $79,999 or less uses a lower set of figures.
| Family size | Northeast | Midwest | South | West |
|---|---|---|---|---|
| 1 | $390 | $382 | $382 | $425 |
| 2 | $654 | $641 | $641 | $713 |
| 3 | $788 | $772 | $772 | $859 |
| 4 | $888 | $868 | $868 | $967 |
| 5 | $921 | $902 | $902 | $1,004 |
For that table, the regulation says to “add $75 for each additional member up to a family of seven.”
Which Region Are You In?
The regulation sorts the states into four regions: Northeast, Midwest, South and West. Your region is where the home you’re buying or refinancing is. The region picks the column on the chart, and your family size picks the row. Two households with the same income can land on different numbers.
- The Northeast region is Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont.
- The Midwest region is Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.
- The South region is Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia and West Virginia.
- The West region is Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.
Who Counts in Your Household?
Everyone who lives in the home counts toward family size, not only the people on the loan. A spouse who isn’t borrowing counts. So do children who aren’t the veteran’s legal dependents, including a spouse’s children from a prior marriage. That’s the regulation’s starting point.
The regulation is explicit about it. “All members of the household must be included in determining if the residual income is sufficient.”
The regulation allows a lower count in one situation: when there’s enough verified income not otherwise included in the loan analysis to cover a household member. Child support that’s regularly received is one example the regulation gives. A spouse who isn’t obligated on the note is another, where stable and reliable employment is verified.
Tell your loan officer who lives with you up front. Family size sets which row of the chart applies.
How Is VA Residual Income Figured?
Start with your stable monthly income. Then subtract federal and state income taxes and Social Security, the estimated shelter expenses for the new home, and your other monthly debts, plus documented job-related costs such as child care. What’s left is the figure compared with the chart.
Shelter expenses are the new payment, property taxes, homeowners insurance, any association dues, and maintenance and utilities. On those last two, the regulation says: “Maintenance and utility amounts for various types of property should be realistically estimated.”
The regulation also says: “Known job-related expenses should be documented.” It names dependent care and significant commuting costs.
A lender estimates maintenance and utilities for the home you pick, so an older or larger house can leave less room than a smaller or newer one. That’s a reason to have a loan officer run residual income on a specific price range before you shop.
What Happens If Your Residual Income Falls Short?
Falling short of the chart doesn’t end the conversation by itself. It changes the review. Under the VA’s regulation, the lender has to justify approving the loan in a written statement signed by the underwriter’s supervisor. The same extra step applies when the debt-to-income ratio runs above 41 percent.
That ratio compares your monthly debt payments, including the new house payment, with your monthly income. On that test the regulation gives a number: “The standard is 41 percent or less.” A borrower who misses either test “may be approved with justification” from the underwriter’s supervisor, and the lender’s written statement has to carry the supervisor’s signature.
When the ratio runs above 41 percent, that second-level review and statement of justification aren’t required if “the residual income exceeds the guidelines by at least 20 percent”.
For a family of four in the Midwest or South on a loan of $80,000 or more, that’s $1,003 times 1.2, or $1,203.60 a month.
The ratio sits beside residual income in the same review, so it’s worth understanding how the debt-to-income ratio works before you talk price.
“High residual income” is one item on the regulation’s list of compensating factors. Those are strengths that can support a borrower who’s weaker somewhere else. The regulation adds that a valid compensating factor should be an unusual strength, not mere satisfaction of basic program requirements. And clearing the chart “does not mean that the loan is automatically approved”. The lender weighs all the factors in your file.
Do the Numbers Change for Active-Duty Borrowers?
Yes, in one case. For an active-duty service member or a military retiree who will keep using the facilities on a nearby military base, the chart’s figures come down by at least 5 percent. The regulation ties that to a clear indication that the borrower or spouse will keep receiving those benefits.
In the regulation’s words, “the residual income figures will be reduced by a minimum of 5 percent”. If that fits your household, raise it with your loan officer.
A VA lender who knows the program can walk you through residual income before you pick a price range. If you’re comparing lenders, it helps to know what to ask when choosing a VA lender.
Frequently Asked Questions About the VA Residual Income Chart
Is there a 2025 or 2026 VA residual income chart?
The tables are the ones in the VA’s regulation, 38 CFR 36.4340, which aren’t labeled by year. Your loan officer confirms the figures that apply to your file when you apply. That’s also a sound way to check a chart you found somewhere else.
Does a spouse who isn’t on the loan count?
Yes. Every member of the household counts toward family size, whether or not they’re on the note. The count can be lower only when there’s enough verified income not otherwise included in the loan analysis to cover someone, such as a spouse with stable and reliable employment.
Is residual income the same as the debt-to-income ratio?
No. The ratio compares your monthly debt payments with your monthly income as a percentage, and the VA’s standard is 41 percent or less. Residual income is the dollar amount left each month, checked against the chart for your region and family size. The VA’s regulation looks at both.
Can you get a VA loan below the chart?
Possibly. Under the VA’s regulation, a loan that misses the residual income standard may be approved with a written justification from the underwriter’s supervisor. It isn’t automatic either way. Ask a loan officer to run your numbers against the table for your region and household size.
Which table applies to my loan?
The $80,000-and-above table applies to a loan of $80,000 or more. The lower table applies to a loan of $79,999 or less. Both tables use the same four regions and the same five family sizes, with a set amount added for each member beyond five, up to seven.
Do children from a spouse’s earlier marriage count?
Yes. The VA’s regulation counts them toward family size even if they aren’t the veteran’s legal dependents. A lower count is appropriate only when there’s enough verified income not otherwise included in the loan analysis to cover them, such as child support that’s regularly received.
Run the Numbers Before You Choose a Price
Residual income asks a plain question. Will your family have enough left for everyday living after the house payment? So know your region, your household size and your monthly debts before you shop. Then let a loan officer run both tests, the VA residual income chart and the ratio, on a real price range.
Fellowship’s VA home loans page carries a simple headline: “Home loans that honor your service”. On Veterans Day, we’re grateful for everyone who has served, and for the families who served alongside them.
If you’re weighing a VA purchase or refinance, talk with a Fellowship loan officer about a VA home loan and run residual income and the debt-to-income ratio together before you settle on a price range.
