What is VA residual income?
Residual income is the dollars left after the borrower pays the new mortgage payment, property taxes, insurance, HOA, all monthly debts, taxes, and utilities (estimated). VA sets minimum residual amounts by region and family size — Florida sits in the South region table.
What this actually means.
Residual income is VA's signature underwriting metric. Calculation: gross qualifying income minus federal/state/payroll taxes, minus the new full housing payment (P&I, taxes, insurance, HOA, CDD, MIP), minus all monthly debts on the credit report, minus an estimated maintenance and utilities figure (typically 14 cents per square foot per month), equals residual. The remainder must meet or exceed VA's minimum for the household's region and family size. Florida is in the South region table. Subject to VA guidelines.
What this looks like on a real file.
Where this can move.
Family size, household region (Florida = South), full housing payment, monthly debts, and an estimated maintenance/utilities figure all affect residual.
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More VA questions on Residual Income.
Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with the VA, HUD, or any government agency.