10/29/2026
59% debt-to-income. VA loan approved. âś…
Most people think VA loans stop at 41% DTI. They don’t.
In this clip, an underwriter explains how she approved veterans at 58–59% DTI on a manual underwrite. These borrowers:
➡️ Had a bankruptcy a few years earlier, with clean credit since
➡️ Had solid, stable income
➡️ Had money in reserves
➡️ Couldn’t get an approval from the automated system
What got them approved was residual income: the money left over each month after the mortgage, debts and living expenses are paid.
Once DTI goes over 41%, VA wants residual income at least 20% above its guideline. If the borrower meets that, has stable income and satisfactory credit, and the underwriter documents the file well, the loan can still work.
Not every lender will do this. Many have their own stricter rules (“overlays”) on top of VA’s guidelines, so the lender you choose matters.
🎖️ Veterans: if you’ve been told your debts are too high to buy, don’t take that as the final answer.
📲 Comment or DM me “RESIDUAL” and I’ll run your numbers for free and tell you where you stand. You can also call or text 972-948-7473.
Richard Sarey | Modern Loan Advisor
Alliance Mortgage Group | Frisco, TX
NMLS #291309 | Company NMLS #292257
Every file is different. Approval depends on full underwriting, credit, income, residual income and lender guidelines. Not a commitment to lend. Equal Housing Opportunity.
