Designed to be a well-deserved safety net for the men and women of our armed forces, homebuyers using VA Loans aren’t required to reach any kind of income threshold to use the loan benefits. However, in order for the agreement to make sense to the lender, the borrower is expect to have a stable, reliable income that is sufficient to cover foreseen monthly expenses, like mortgage payments.

Furthermore, the VA needs proof of income left over each month once necessary expenses are covered. The excess is needed to cover expected costs, like food, transportation, and other residual income requirements. It is because of this that the VA Loan maintains one of the lowest foreclosure rates within all lending options today.

The VA argues that mandating a residual income requirement increases veterans ability to earn income that meets all financial obligations – thereby creating an emergency fund when the time comes.

Lastly, though perfect credit scores aren’t a requirement for this loan, when you apply for the VA Loan, our Home Loan Expert Specialist will review your score from three credit agencies. They will also review your debt-to-income ratio.