What is the debt to income ratio for VA loans?

The debt-to-income (DTI) ratio for VA loans is typically set at 41% overall, which means that a borrower’s total monthly debts — including housing costs and other obligations — should not exceed 41% of their gross monthly income. This ratio is designed to ensure that borrowers have sufficient income to cover their debts while still maintaining the ability to afford their day-to-day living expenses.

Unlike some loan types that might have a specific housing ratio component within the overall DTI, VA loans do not require a defined housing ratio. This flexibility is one of the advantages of VA loans, as it allows borrowers to have additional room for their non-housing monthly debts without being constrained by a separate housing ratio limit. This can be particularly beneficial for veterans and active-duty military members who may have irregular income streams.