This might be an unpopular opinion 👀 ratios are NOT the whole story on a VA loan.
Most loans (FHA, Conventional, USDA) live by your debt-to-income ratio. VA loans? Different game — it's about RESIDUAL INCOME. That's what's left after mortgage, debts, taxes, childcare, commuting... everything.
65% debt ratio and still got approved because of the residual income test. 🤯 That's where VA loans stand apart.
Bonus tip: the gross-up rule lets lenders boost your tax-free VA disability income for DTI (like $2K → $2.5K)... but NOT for residual income. For that test it's still just $2,000.
Don't just ask what your DTI is. Ask about your RESIDUAL INCOME. 🔑
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Richard Sarey | NMLS 291309
