VA Home Loans - VA Income Guidelines

Residual income is the amount of net income remaining (after deduction of debts and obligations and monthly shelter expenses) to cover family living expenses such as food, health care, clothing, and gasoline.

The numbers are based on data supplied in the CES (Consumer Expenditures Survey) published by the Department of Labor's Bureau of Labor Statistics. They vary according to loan size, family size, and region of the country.

Special Instructions for Using Tables

Count allmembers of the household (without regard to the nature of the relationship) when determining "family size," including

•	an applicant's spouse who is notjoining in title or on the note, and

•	any other individuals who depend on the applicant for support. For example, children from a spouse's prior marriage who are not the applicant's legal dependents.

Exception:The lender may omit any individuals from "family size" who are fully supported from a source of verified income which, for whatever reason, is notincluded in effective income in the loan analysis. For example

•	a spouse not obligated on the note who has stable and reliable income sufficient to support his or her living expenses, or

•	a child for whom sufficient foster care payments or child support is received regularly.

Reduce the residual income figure (from the following tables) by a minimum of 5 percent if

•	the applicant or spouse is an active-duty or retired serviceperson, and

•	there is a clear indication that he or she will continue to receive the benefits resulting from use of military-based facilities located near the property.

Use 5 percent unless the VA office of jurisdiction has established a higher percentage, in which case, apply the specified percentage for that jurisdiction.

A key to the geographic regions is listed in the following tables.

Table of Residual Incomes by Region For loan amounts of $79,999 and below
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
over 5	Add $75 for each additional member up to a family of 7.

Table of Residual Incomes by Region For loan amounts of $80,000 and above
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	$1062	$1,039	$1,039	$1,158
over 5	Add $80 for each additional member up to a family of 7.

Key to Geographic Regions Used in the Preceding Tables
Northeast	Connecticut Maine Massachusetts	New Hampshire New Jersey New York	Pennsylvania Rhode Island Vermont
Midwest	Illinois Indiana Iowa Kansas	Michigan Minnesota Missouri Nebraska	North Dakota Ohio South Dakota Wisconsin
South	Alabama Arkansas Delaware District of Columbia Florida Georgia	Kentucky Louisiana Maryland Mississippi North Carolina Oklahoma	Puerto Rico South Carolina Tennessee Texas Virginia West Virginia
West	Alaska Arizona California Colorado	Hawaii Idaho Montana Nevada	New Mexico Oregon Utah Washington Wyoming

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