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Income Requirements for a VA Loan

While VA-backed loans often enjoy freedom from down payment requirements and more leniency on credit scores, they do still require documentation/verification of income.

Most often private lenders attempting to verify income/earnings will request documentation of your reported taxable income for the last couple years (often in the form of your W2’s). Additionally, many lenders will request documentation of your current employment in the form of recent pay stubs.

Certain types of income, though, are more difficult to document and less likely to apply – but are still worth covering.

Income verification from self-employment, for example, may be required. Private lenders researching self-employment income will likely request tax documentation and finance/balance sheets for the last one to three years.

Income from varying social programs (Social Security, foster care, Worker’s Compensation, and other forms of public assistance) may be countable as income depending on how long they’ve been received and their expected duration into the future.

Seasonal, part-time, overtime, and bonus income may be counted – but will depend on the private lender themselves and the specifics behind the work involved. Temporary, limited income (however) is rarely acceptable as a form of income for loan documentation purposes.

Military income is generally accepted, and can be most easily documented with your Leave and Earning Statements. VA disability income is often counted as well, although some lenders may want documentation regarding the expected

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