The residual income calculation attempts to discern whether the veteran borrower(s) has sufficient income â¦ >A VA loan borrower in Ohio, then, with a family of 4 and a high DTI would need to show residual income of $1,204, which would satisfy the VA and its underwriters. Chapter 4. Credit Underwriting. The VA loan program gives a veteran the ability to qualify with a DTI that exceeds the 41% limit (and even exceed the 45% DTI max allowed by a conforming loan) as long as the veteranâs Residual Income meets the required threshold determined by the VA â¦ Residual income is the amount of net income â¦ This document shows you how to create a new VA loan casefile in DU and explains how to enter the minimum amount of data necessary to receive an underwriting recommendation for a VA loan. So, they use the following formula to determine your VA Loan Residual Income. Overview. Example: A family of four would be required to have $1003 left over when all shelter expenses, child care and monthly debts are paid. VA Residual income requirements are important in order to qualify for a VA loan. The VA wants to make certain that you have enough money left over to take care of your day-to-day expenses. The residual income test looks at the clientâs ability to pay for basic family needs, such as food, clothing, ... as well as maintenance and utilities, job related expenses and ... $1025 in residual income (for loan amount > $80,000). The standard family-of â¦ For estimated maintenance and utilities, multiply the gross living area of the property by the maintenance and utility factor found in the Lenders Handbook - VA Pamphlet 26-7. Conventional standards for residual income have developed a reference point that includes minimum amount of reserves in conjunction with residual income between $800 and $2500. The VA residual income â¦ The VA requires that there be residual income left over after all income is calculated and all of the monthly expenses are subtracted out. If our example Midwestern family of four has a DTI ratio above 41 percent, here's what their residual income â¦ In this Chapter This chapter contains the following topics. Topic Topic Name See Page 1 How to Underwrite a VA-Guaranteed Loan 4-2 2 Income 4-6 3 Income Taxes and Other Deductions from Income â¦ For ease of reference, we will generally use the term âDUâ to refer to Desktop Originator ® and Desktop Underwriter ® (DO ® /DU ®).. The VA â¦ Talk with your VA â¦ These borrowers will need to exceed their residual income guidelines by 20 percent to satisfy the VA and lenders. The net income must exceed VA residual area income charts. To use residual income as a â¦ Calculating Your VA Loan Residual Income. Entering the Data for a VA Loan. Also included in the calculation is a maintenance & utilities expense. But VA buyers need even more residual income on hand if their DTI ratio is higher than 41 percent. Conventional markets are not inclined to accept residual income below 800 but VAâ¦ You must meet a specific residual income threshold, which varies depending on the size of your family and where you live. My web page.