VA residual income chart (loans of $80,000 and up)
| 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 | $1,062 | $1,039 | $1,039 | $1,158 |
| Each additional | +$80 | +$80 | +$80 | +$80 |
Source: VA Lender's Handbook (VA Pamphlet 26-7) and 38 CFR 36.4340. California is in the West region.
How it's calculated
Start with gross monthly income, then subtract federal, state and local taxes, Social Security and Medicare, your new house payment, monthly debts, and an estimate for maintenance and utilities (based on the home's square footage). What's left is your residual income.
The 5% break for military
VA allows the residual income requirement to be reduced by 5% for active-duty members and military retirees buying near a base.
Residual income vs. the 41% DTI guideline
VA's 41% debt-to-income ratio is a guideline, not a hard cap. When your DTI is above 41%, VA generally looks for residual income at least 20% above the minimum — strong residual income is what lets many buyers qualify above 41%.
Common questions
What region is California in for VA residual income?
The West region.
Does residual income replace DTI?
No — lenders look at both. Residual income is VA's primary test, and strong residual income can offset a debt ratio above the 41% guideline.
What counts as family size?
Everyone in the household who depends on the income, including a spouse and children, even if the spouse doesn't work.
See your real numbers
Our free calculator uses 2026 pay tables, BAH by ZIP and VA residual income standards. About 2 minutes, no credit pull.
Educational information only, not a commitment to lend or a loan approval. VA guidelines and lender requirements change; your eligibility and terms depend on your full application, credit, income and VA entitlement.