There’s no set minimum salary for a VA loan. Instead, VA checks your “residual income,” the money left over each month after taxes, your new house payment, utilities, and debts. In Texas, VA’s guideline for a loan of $80,000 or more is $1,003 a month for a family of four, or about $953 for an active duty or retired service member. On a new build, the lender has to use the full expected tax bill, not just the lot value, and that can change the math. Here’s how it works and how to run your own numbers before you pick a floor plan.
Brock Bremmer | U.S. Air Force Reserves Veteran | Real Estate Agent | eXp Realty | San Antonio Metro Area
VA Loan & New Construction Specialist
Also see: VA Loans on New Construction | VA Loan Guide for San Antonio | Why New-Build Payments Go Up
What Is VA Residual Income?
VA’s Lenders Handbook (M26-7, Chapter 4) defines residual income as the net income left “after deduction of debts and obligations and monthly shelter expenses” to cover family living expenses. VA bases its guideline amounts on the Bureau of Labor Statistics Consumer Expenditure Survey, and they vary by loan size, family size, and region.
Residual income is VA’s main affordability test. The handbook calls the debt-to-income ratio “secondary to the residual income.” Neither number automatically approves or denies a loan, but VA says an inadequate residual income alone can be a reason to deny one.
How Much Residual Income Do You Need in Texas?
Texas is in VA’s South region. These are the South guidelines from M26-7, Chapter 4:
| Family size | Loan $79,999 or less | Loan $80,000 or more |
| 1 | $382 | $441 |
| 2 | $641 | $738 |
| 3 | $772 | $889 |
| 4 | $868 | $1,003 |
| 5 | $902 | $1,039 |
| Each extra member, up to 7 | add $75 | add $80 |
Almost every San Antonio new build falls in the $80,000-and-up column. Family size counts everyone in the household, including a spouse who isn’t on the loan, but VA lets lenders leave out household members fully supported by separate verified income that isn’t being used for the loan.
VA reduces the guideline by 5% if you’re active duty or retired, or if you’ll clearly benefit from military facilities near the property. The handbook’s examples include Guard and Reserve retirees and 100% disabled veterans. In San Antonio, with JBSA-Lackland, JBSA-Randolph, and JBSA-Fort Sam Houston nearby, that reduction comes up a lot. For a family of four, $1,003 drops to about $953.
What Does VA Count Against Your Income on a New Build?
Your lender starts with gross income and subtracts federal income tax and Social Security and Medicare. Texas has no state income tax, which helps. Then it subtracts your shelter expense and monthly debts. VA’s shelter expense rules include several that matter more on a new build:
- Taxes: “If taxes are expected to increase, use the increased amount.” A new build’s first tax bill is often based on the lot alone, so VA wants the higher bill for the finished home.
- Special assessments: “If special assessments are anticipated, use the anticipated amount.” That covers PID assessments, which are common in newer San Antonio communities. Here’s how PID, MUD, and SID taxes work.
- Maintenance and utilities: 14 cents per square foot of gross living area from the appraisal. A 2,000 sq ft home counts as $280 a month. Bigger plans cost you more residual income.
- HOA dues and flood insurance: HOA dues are included, and so is flood insurance if the home is in a special flood hazard area.
- Other deductions: Child care, job-related costs, and significant commuting costs can also be subtracted.
VA also excludes temporary income, such as VA education benefits like the Post-9/11 GI Bill. Tax-free income, such as certain military allowances, can be “grossed up” to 125% for the debt-to-income ratio only, not for residual income.
What Does the Math Look Like on a Real New Build?
Here’s a hypothetical example. The income, payment, insurance, and HOA figures are made up for illustration, not quotes. An active duty family of four buys a $400,000, 2,000 sq ft new build in New Braunfels, where Comal County’s combined 2026 rate is about 1.795% (Comal ISD, city, and county).
- Take-home after federal tax and Social Security and Medicare: $6,000
- Principal and interest (hypothetical): $2,400
- Property taxes on the finished home: about $598
- Homeowners insurance (hypothetical): $150
- HOA (hypothetical): $50
- Maintenance and utilities (2,000 × $0.14): $280
- Car payment: $450
That leaves about $2,072 in residual income, well above the roughly $953 guideline. Now suppose someone budgeted from a lot-only tax bill of about $120 a month. They’d think they had about $478 more each month than they really will. VA’s rule keeps the lender honest, and you should build your own budget the same way.
The debt-to-income ratio in this example is about 43% ($3,648 in housing and debt on a hypothetical $8,500 gross income). That’s over VA’s 41% guideline. But because residual income beats the guideline by more than 20%, the handbook doesn’t require a supervisor’s written justification for the higher ratio. Your lender still makes the final call.
How Can You Improve Your Residual Income Before Picking a Plan?
- Get a VA pre-approval that shows residual income. Ask your lender for the residual figure and the guideline it was measured against.
- Size the plan to the budget. Every extra 500 sq ft adds $70 a month in VA’s maintenance and utility estimate, on top of the higher price and taxes.
- Compare tax rates and special districts. Two homes at the same price can have very different tax bills. My San Antonio property tax guide breaks down the rates.
- Pay down a monthly debt. Paying off a car or card payment frees up residual income dollar for dollar.
- Use builder incentives carefully. A 2-1 buydown or closing-cost help can count toward VA’s 4% concession limit. Ask how your lender qualifies you with a buydown.
- Check exemptions. Disabled veterans may qualify for big property tax exemptions. Here’s how they apply to a new build.
I walk through the full VA new-build process in my video How to Buy a New Construction Home with a VA Loan in San Antonio. I explain why price isn’t the whole payment story in Why a $400K Home Can Be CHEAPER Than a $360K Home in San Antonio.
Frequently Asked Questions
Is there a minimum income for a VA loan?
No. VA doesn’t set a minimum salary. It uses residual income guidelines by region, family size, and loan amount. In Texas, the guideline for a family of four on a loan of $80,000 or more is $1,003 a month, reduced 5% for active duty or retired borrowers.
Does a VA lender use the lot-only tax bill on a new build?
It shouldn’t. VA’s Lenders Handbook says that if taxes are expected to increase, the lender uses the increased amount. On a new build, that means estimating taxes on the finished home, not just the land.
Ready to Run Your VA Numbers on a New Build?
Brock Bremmer with eXp Realty is a U.S. Air Force Reserves veteran who has helped buyers and sellers close 120+ homes across the San Antonio metro. He helps VA buyers compare builders, tax rates, and incentives in San Antonio, New Braunfels, and Boerne so the home fits the budget before they sign.
- 📞 Call or text: 210-501-5088
- 📧 Email: [email protected]
- 📅 Schedule a free consultation
Also see: How to Use a VA Loan in San Antonio | VA Funding Fee Exemptions | VA Loans on a Duplex or Fourplex
Sources: VA Lenders Handbook (M26-7), Chapter 4, Credit Underwriting (residual income tables, regions, shelter expenses, debt-to-income ratio, tax-free income); VA, closing costs and 4% seller concession limit; Comal County, 2026 tax rates for all taxing units; Texas Comptroller, property tax exemptions.