Specialized In Jumbo Loans, Investor Loans, DSCR Loans, Non-QM Financing, Commercial Mortgages, and Tax-Informed Lending Strategies
Published By
David Ghazaryan
Owner / Broker / Banker
Contact Me At
(702) 766-3744
NMLS 1486726
What VA Residual Income Is: It represents the net discretionary income a household has each month after paying the new mortgage, taxes, insurance, all debts, and estimated living expenses. The VA requires this calculation to ensure veterans can afford daily necessities and to help prevent foreclosures.
How It Is Determined: The required minimum amount is not a single figure; it depends on your specific geographic region and the number of people in your family. For example, Texas falls into the 'South' region, and the required income increases with each family member.
Key Calculation Factors: The calculation starts with your net take-home pay, not your gross salary. It subtracts major obligations, with childcare costs being a significant, dollar-for-dollar deduction. It is important to note that a high credit score cannot make up for failing to meet the residual income threshold.
Improving Your Standing: Veterans who fall short can take proactive steps. The most effective methods include reducing or eliminating existing debts, officially documenting all sources of stable income, and strategically searching for homes with lower taxes or no HOA fees.
Read the full blog article here: https://www.iqratemortgages.com/blog/va-residual-income-in-texas-a-killeen--san-antonio-guide
Lenders focus on cash left over, not just your debt. I'm David Ghazaryan, and I check your family size first. Your family size and location set your required cash minimum. I see every dollar of paid debt add to approval. Your childcare costs are a major reason for loan denials. I explain more on my platforms; see links in description.
Read Blog Here: https://www.iqratemortgages.com/blog/va-residual-income-in-texas-a-killeen--san-antonio-guide
