How Much Can You Gross up VA Disability Income on a VA Loan

How Much Can You Gross up VA Disability Income on a VA Loan?

When applying for a VA loan, veterans may wonder how their disability income will be considered in the loan application process. The good news is that VA disability income can be grossed up, allowing veterans to potentially qualify for a larger loan amount. Here’s what you need to know about grossing up VA disability income on a VA loan.

Grossing up VA disability income means increasing the amount of income considered when calculating the loan eligibility. This can be beneficial for veterans as it may help them qualify for a larger loan amount or improve their debt-to-income ratio.

The amount by which VA disability income can be grossed up varies depending on the lender and the type of disability income. However, most lenders allow a gross-up of 125% for VA disability income. For example, if a veteran receives $1,000 in disability income, the lender will consider it as $1,250 when calculating the loan eligibility.


1. Can all types of disability income be grossed up?
Yes, most lenders allow grossing up of all types of VA disability income, including compensation for service-connected disabilities and pension for non-service-connected disabilities.

2. Is there a maximum limit to how much disability income can be grossed up?
There is no specific maximum limit set by the Department of Veterans Affairs (VA). However, individual lenders may have their own policies and limits on grossing up VA disability income.

3. Do I need to provide proof of disability income?
Yes, you will need to provide documentation of your disability income, such as award letters from the VA, to the lender during the loan application process.

See also  What Happens if I Get a Credit Card While in Chapter 13

4. Can I gross up other types of income, such as retirement or social security?
Grossing up other types of income is not specific to VA loans and may depend on the lender’s policy. It’s recommended to consult with the lender to determine if they allow grossing up of other income sources.

5. Will grossing up disability income affect my tax liability?
Grossing up disability income does not have any impact on your tax liability. The increase in income is only considered for loan eligibility purposes and does not affect your taxable income.

6. Can my spouse’s disability income be grossed up as well?
Yes, if your spouse has disability income, it can also be grossed up, subject to the lender’s policies.

7. Can I use grossed-up disability income to cover the mortgage payment?
Yes, the grossed-up disability income can be used to meet the income requirements for the loan and can be used to cover the monthly mortgage payment.

In conclusion, grossing up VA disability income on a VA loan is a valuable tool that can help veterans qualify for a larger loan amount. It’s important to consult with lenders who specialize in VA loans to understand their specific policies and guidelines regarding grossing up disability income. By utilizing this option, veterans can take advantage of their disability income and achieve their homeownership goals.