By Alex Rodino, REALTOR® | Georgia real estate license #443565 | U.S. Army veteran
Last updated: October 2026
VA’s Lenders Handbook tells lenders to subtract child care as a job-related expense and to check for child care costs for any children up to age 12, because residual income is the money left each month, after debts and shelter expenses, to cover family living expenses. Georgia uses the South region of VA’s residual income tables. The applicable figure depends on loan amount and the household count under VA’s rules. VA calls these figures a guide, so reaching a table number does not settle the loan decision. An inadequate residual income can also be a basis for disapproval. Your lender must review the full picture. I tell VA buyers to list child care up front, so the numbers the lender runs match real life.
What residual income means on a VA loan
In brief: Residual income is the net income remaining after debts, obligations and monthly shelter expenses, available to cover family living expenses. VA’s tables give lenders a comparison figure based on loan size, family size and region. The calculation also includes a maintenance and utilities allowance within shelter expenses.
In the VA Lenders Handbook, Chapter 4, Topic 9(e), the residual amount appears as the balance available for family support.
For maintenance and utilities, Topic 9(b), Table 8, item 19 directs lenders to use 14 cents per square foot of gross living area as shown by the appraisal. This calculation is not a utility bill quote.
Where child care fits
In brief: VA includes child care among the expenses deducted from income because of employment. Chapter 4 tells the lender to determine whether borrowers have child care expenses for children up to age 12. Bring those costs into the conversation when your lender gathers the information for the loan analysis.
Topic 3(c), titled “Other Deductions from Income,” groups child care with job-related expenses, significant commuting costs and other direct or incidental costs associated with the borrower’s or spouse’s employment. Child care belongs in that expense discussion.
The instruction appears again in Topic 9(c), which explains how to complete VA Form 26-6393. It places child care under “Job Related Expense,” Section D line 29. Describe the cost accurately to your lender.
Related reading: VA pre-approval steps.
VA residual income figures for Georgia
In brief: Georgia falls in the South region in VA’s geographic key. Use the South column for the applicable loan amount and family size. VA’s tables stop adding members at seven. These are VA’s guideline figures for residual income, and the lender must consider them alongside the other credit factors.
VA’s Lenders Handbook tells lenders to subtract child care as a job-related expense and to check for child care costs for any children up to age 12, because residual income is the money left each month, after debts and shelter expenses, to cover family living expenses.
| Family size | Loan $79,999 and below (South) | Loan $80,000 and above (South) |
|---|---|---|
| 1 | $382 | $441 |
| 2 | $641 | $738 |
| 3 | $772 | $889 |
| 4 | $868 | $1,003 |
| 5 | $902 | $1,039 |
| Each additional member, up to seven | Add $75 | Add $80 |
Source: VA Lenders Handbook, M26-7 Chapter 4, Tables 9 and 10 (South region), read October 2026. Table 11 places Georgia in the South.
VA’s own example uses a household of eight buying in Georgia with a $150,000 loan and gives a residual figure of $1,199. The calculation starts with $1,039 for five people, then adds $80 for each of two additional members: $1,039 + $80 + $80 = $1,199. VA says the eighth person is not considered in this calculation. This illustrates the counting cap.
How VA counts family size
In brief: VA starts by counting all household members, regardless of their relationship to the borrower. Its instructions include a spouse who is not on the title or note and others who depend on the borrower for support. The handbook also gives an exception involving verified income outside the loan analysis.
Topic 9(e) says: “Count all members of the household (without regard to the nature of the relationship)” when determining family size. It also requires a dependent claimed on federal tax returns to be considered a household member for this calculation.
The exception reads: “The lender may omit any individuals from ‘family size’ who are fully supported from a source of verified income which, for whatever reason, is not included in effective income in the loan analysis.” Do not remove someone from the count simply because that person is not borrowing.
A guide, not an automatic yes or no
In brief: VA says its minimum residual incomes are a guide and should not automatically trigger approval or rejection. Lenders must consider other credit factors too. The same guidance says inadequate residual income alone can support disapproval, so treating the table as either a guarantee or an irrelevant number misses the rule.
Topic 10(a) directs lenders to consider the ages of the borrower’s dependents when judging whether residual income is adequate. When the amount is marginal, it points to indicators such as credit history and how the borrower previously handled similar housing expense.
Topic 10(d) lists “tax credits for child care” and “high residual income” among possible compensating factors. It also says compensating factors cannot compensate for unsatisfactory credit. The lender evaluates each factor.
Related reading: VA vs FHA vs conventional loans.
What to have ready for your lender
In brief: Have an accurate account of current child care costs, how you pay them and other job-related expenses ready for your lender. Ask what the lender needs for your particular file. This preparation follows the handbook’s expense categories without assuming that every lender requests the same supporting information.
- Current child care costs and how they are paid.
- Other job-related expenses, including significant commuting costs.
- Questions about the lender’s own requirements for reviewing those expenses.
Here is where this shows up in a home search: I ask buyers to settle expense questions with their lender before we set the timing of an offer. My role is to help with the property search and contract. Related reading: what a first home in Savannah really costs.
This article explains general VA and FHA program rules for education only. It is not lending, legal, tax or financial advice and is not an offer or commitment to lend. Lenders may apply stricter requirements of their own. Talk to a licensed mortgage professional about your situation. Alex Rodino is a REALTOR® with Keller Williams Realty Coastal Area Partners, Georgia real estate license #443565. Equal Housing Opportunity.
Frequently asked questions
In brief: Child care is part of VA’s job-related expense review, and Georgia uses the South residual income tables. Household counting and the lender’s broader credit analysis matter too. These answers explain the handbook’s instructions; ask your lender how those instructions apply to your file.
What is residual income on a VA loan?
Residual income is net income left after debts, obligations and monthly shelter expenses to cover family living expenses. Chapter 4, Topic 9(e) of VA’s Lenders Handbook gives that definition. Its tables vary by loan amount, household size under VA’s counting instructions and region. The lender uses the applicable guideline while reviewing the rest of the credit information, rather than deciding the loan from that figure alone.
Does VA count child care as a debt?
VA places child care in its job-related expense deductions from income. Chapter 4, Topic 3(c) includes it alongside significant commuting costs and other employment-related costs. Topic 9(c) repeats that treatment in the instructions for Section D line 29 of VA Form 26-6393. Give your lender accurate expense information and let the lender place it in the loan analysis under those instructions.
What is the VA residual income requirement in Georgia?
Georgia uses the South region of VA’s residual income tables, with the figure determined by loan amount and family size. Chapter 4, Topic 9(e), Tables 9 and 10 supply the figures shown above, and Table 11 supplies the region. VA calls its minimum residual incomes a guide. Your lender must apply the household-count instructions and consider residual income together with all other credit factors.
How does VA count family size for residual income?
VA tells lenders to count all household members without regard to their relationship to the borrower. Chapter 4, Topic 9(e) includes a spouse who is not joining in title or on the note and people who depend on the borrower for support. Its exception concerns people fully supported by verified income excluded from effective income in the loan analysis. Have your lender review that exception before assuming someone can be omitted.
Can a loan be approved if residual income is below VA's table?
VA says its minimum residual incomes should not automatically trigger approval or rejection of a loan. Topic 10(a) says to consider residual income alongside all other credit factors. It also says inadequate residual income alone can be a basis for disapproval. For marginal residual income, the guidance points to other indicators, including credit history and how the borrower has previously handled similar housing expense.
Do I need to tell my lender about child care costs?
Be accurate on your application and tell your lender about child care costs. Chapter 4, Topic 3(c) makes the lender responsible for determining whether borrowers have child care expenses for children up to age 12. Topic 9(c) repeats the inquiry in the loan-analysis instructions. Give accurate information when the lender asks about those expenses so the lender can carry out that responsibility.
Planning a VA purchase in Coastal Georgia?
In brief: Bring the lending questions to a licensed mortgage professional and the home-search and contract questions to me. I can help you plan the property search and offer timeline around the information your lender provides. Keep the child care discussion part of that preparation before committing to a purchase.
For military relocation help, call 912-351-8935, text 912-210-8967 or contact Alex. Let’s work on the home search and the contract timing.
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