When lenders are reviewing an applicant’s qualifications for a mortgage, there are many aspects that they must take into consideration. For VA loans specifically, not only do lenders look at overall debts (credit card expenses, installment loans, and your new mortgage expense), they also look at additional and every day expenses (such as food, clothing and gas) to ensure there are enough funds available to cover the mortgage and basic living expenses.
This is known as the Residual Income Requirement. When qualifying for a VA purchase or refinance, you will need to meet certain minimum residual income numbers based on your requested loan amount, where you will be buying and how many people will live in the home.
Below is an example of a residual income requirement chart.