Other VA Loan Eligibility Factors Beyond Credit Score

1. Income Stability – Can You Really Afford the Monthly Payment?

Credit score might get their attention, but stable income closes the deal.Lenders want proof that your income can handle a mortgage every month—reliably.That’s why consistent income history is one of the key VA loan approval factors beyond credit score. Here’s what they’re looking for:

• At least two years of steady income (not job-hopping every three months)
• If you’re self-employed, tax returns that show stable or increasing income
• Military allowances like BAH (Basic Allowance for Housing) count as income
• Overtime, bonuses, disability income, rental income—if it’s reliable, they’ll consider it

If your job has big swings in income or you’ve recently changed industries, they’re going to look harder.Bottom line: Your ability to prove steady income is key to your VA loan approval chances.

2. Residual Income – You’re Either Making It or You’re Not

This one trips a lot of people up.The VA has a very real thing called “residual income.”It’s basically the leftover money you have each month after paying your fixed bills like:

• Mortgage and taxes
• Car payments
• Utilities
• Childcare
• Student loans

The VA wants to make sure that after paying all that, you’re not left scraping by on ramen noodles.

Here’s how they look at it:

• Your family size matters. A family of five needs more residual income than a single dude.
• Region plays a role. Living in LA? You’ll need more than someone in rural Kentucky.

This is one of those VA loan eligibility factors that hits people who are house-poor. You can get approved, but if you don’t have much room left in your budget, the VA might pause you right there.

3. Employment Type – Are You “Safe” in Their Eyes?

Borrowers think any income is good income. Lenders don’t.The employment type you have changes how they look at approval:

• Active Duty or Full-time W2 job? You’re probably good. That’s stable in their eyes.
• Contract work? You’ve got to show a long track record doing that type of work or recurring contracts.
• Self-employed? They’ll want 2 years of solid tax returns. No way around it.
• Recently changed careers? Warning sign unless your education/training supports the new direction.

Lenders love predictability. Gig workers, commission-based salespeople, new entrepreneurs—be ready to show documents, not just vibes.This is where good strategy pays off. If you’re in between jobs or you just switched, it might be smarter to hold off for a few months until your income shows a believable pattern.

4. Past Payment History – What Did You Do With Your Last Life Line?

If you’ve had any previous mortgage, rental, or auto loan—they want to know how you handled it.This is way deeper than just your credit score.Lenders will go through your rent history with a flashlight. Were you ever more than 30 days late?Stuff like this will get attention:

• Mortgage late payments in the last 12 months – big red flag
• Evictions – not good. Could stop the process cold.
• Foreclosures – if it was more than 2 years ago, and you’ve rebuilt, maybe
• Bankruptcies – again, if it’s discharged and you’re back on track, you’re not out

Credit score might “hide” this stuff, but a lender will see it in your full loan app.So yeah, your history still speaks loud. And it’s one of those overlooked VA loan eligibility factors that can knock people sideways.

5. Debt-to-Income Ratio – How Stacked Are You?

Another huge factor in VA loan approval that gets less love than credit score: your Debt-to-Income Ratio (DTI).This is the percentage of your gross monthly income that goes toward debt.Your DTI reveals whether you’re buried in debt or you’ve got space to take on that monthly mortgage.VA loans aim for a DTI under 41%. But listen—some people get approved with higher, if the rest of their file is strong. I’ve seen 50%+ go through.

Here’s what counts in your DTI:

• Car loans
• Student loans
• Credit cards (minimum pay)
• Personal loans
• New mortgage payment

If your DTI is high but you’re killing it on residual income and have buffers like savings, lenders may still be comfortable.

VA Loan Eligibility Factors Beyond Credit Score – What’s the Real Picture?

Credit score is just the billboard.Lenders are looking at the whole picture—your income, your consistency, how you’ve handled debt before, your job type, your family, where you live… it all adds up.If you’ve been only chasing the score, you’re missing what actually gets people approved.And if you’re ready to move forward, go check out other tips and straight-up real estate stuff on the reAlpha blog right now.

FAQs: What Else Should I Know About VA Loan Eligibility Factors?

What’s the minimum income for a VA loan?

There’s no set number, but you have to meet the residual income requirement based on family size and region. It’s not how much you earn—it’s how much you keep after your bills.

Will a low credit score disqualify me from a VA loan?

Not necessarily. The VA doesn’t set a minimum credit score, but most lenders want to see at least a 580-620. More importantly, they’ll be looking hard at your income, job, and debt story.