In addition to meeting the debt to income ratio requirements, which test is also used to qualify a veteran for a VA loan?

The residual income test is a critical component in qualifying a veteran for a VA loan, along with the debt-to-income ratio requirements. This test assesses the veteran's ability to meet living expenses after all debts have been paid. It ensures that the borrower not only has enough income to cover their monthly mortgage payments but also has sufficient income left over for essential living expenses such as food, transportation, and healthcare.

The residual income requirement is particularly important for VA loans as it aims to provide veterans with a safety net to prevent financial hardship. The Department of Veterans Affairs specifies minimum residual income levels based on the size of the borrower's family and the geographic area in which they reside, which helps to ensure the borrower maintains a reasonable quality of life after paying their housing expenses.

In contrast, the other options do not align with the qualifications used specifically for VA loans.