VA Income Requirements

Key Income Sources for VA Loan Eligibility

Below outlines the various income sources considered by the VA when determining loan eligibility, ranked by their commonality among applicants. It spans from employment and military income to retirement benefits and beyond, detailing the specific verification requirements for each. This guide is essential for veterans and service members to understand which income types are accepted and how to prove their reliability and continuity when applying for a VA loan.

Income Source VA Requirements and Verification
Employment Income   Proof of stable and reliable income (e.g., pay stubs, W-2s, verification of employment)  Two years of employment history preferred  
Active Duty Income Leave and Earnings Statement (LES) as proof of income.  If relocating, current military orders.  
Reservist/Guard Income Leave and Earnings Statement (LES) as proof of income.  Orders if activated Proof of continuity for reservists not on active duty
Disability Income VA Disability Award Letter showing rating percentage and dollar amount received  
Social Security Income Social Security Award Letter   
Retirement Income Award letters from the source of retirement  
Child Support/Alimony Court order or agreement specifying the amount Proof that it will continue for at least three years
Rental Income Current lease agreements Two years of tax returns showing rental income
Self-Employment Income Two years of tax returns Year to Date Profit and loss statements Business verification such as business license or accountant’s letter
Investment Income Statements from investment accounts Two years of tax returns Proof of continued receipt for at least three years (Asset statement)
Interest and Dividend Income Investment statements showing history of earnings Two years of tax returns Proof of continued receipt for at least three years
Foreign Income Documentation proving income (e.g., pay stubs, employment verification, tax returns) Foreign income must be converted to USD
Caregiver Income Caregiver Income Statement Evidence that the income will continue for at least three years
GI Bill Benefits Generally not counted as income for mortgage qualification due to its temporary nature
Other Income Any other income sources must be documented and proven to be stable and reliable, with an expectation to continue for at least three years. This can include things like bonuses, commissions, or income from part-time employment.
 

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