The required residual income for a VA loan in is .
Calculations
Total Income
$
Total Expenses
$
Total Taxes
$
Residual Income
$
VA Residual Income Requirements
The following items ARE included in Residual Income:
- Leases on Utility Systems/Equipment (like a water filtration system)
- Federal, state, and local income taxes, if not delinquent and if no payment is required
- Federal Insurance Contributions Act (FICA)
- Utilities (use $0.14 x subject property gross living area)
- Commuting Costs - If Significant
- Union Dues
- Child Care (up to age 12)
Note
- Up to age 12, the lender is responsible for determining if there are any child care expenses for the borrower(s).
- List all known debts and obligations of the borrower and spouse including any alimony and/or child support payments. Spousal support or alimony may be treated as a reduction in income; however, child support is to be treated as a liability.
- Count all members of the household (without regard to the nature of the relationship) when determining "family size".
- If a dependent is claimed on the Federal Tax Returns, then the dependent must be considered as a member of the household, to calculate residual income.
- The lender may omit any individuals from "family size" who are fully supported from a source of verified income which, for whatever reason, is not included in effective income in the loan analysis.
- Tax-free income may be "grossed up" for purposes of calculating the debt-to income ratio only.
