Answer four quick questions and we'll estimate your residual income against the guideline for your region.
Tell us where you live and who lives with you so we can align on the right residual income requirement.
We compare your household's disposable income to the VA guideline for your region and family size.
Connect with a South River Mortgage specialist to translate these numbers into a personalized HECM strategy.
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Calculate how much you can finance when buying a home with a HECM reverse mortgage, and see your required down payment.
Take Quiz >Calculate how much you can finance when buying a home with a HECM reverse mortgage, and see your required down payment.
Take Quiz >Calculate how much you can finance when buying a home with a HECM reverse mortgage, and see your required down payment.
Take Quiz >Residual income refers to the amount of money you have left each month after paying for essential expenses like your mortgage, property taxes, insurance, and other debts. Lenders use this calculation to evaluate your ability to repay a loan and maintain a healthy financial lifestyle.
Residual income is a key factor in determining whether you can afford a mortgage. It ensures that you have enough money left over after meeting your monthly obligations to cover day-to-day expenses like food, transportation, and utilities. This is especially important for VA loans, which have specific residual income requirements.
Residual income is calculated by subtracting all major monthly obligations from your gross monthly income. These obligations typically include:
The formula is:
Residual Income = Gross Monthly Income – Monthly Obligations
Gross monthly income includes wages, pensions, and other consistent income sources.
Several factors can impact your residual income, including:
The ideal residual income depends on your lender’s requirements and personal financial goals. As a general rule, having a higher residual income than required can strengthen your loan application and provide more financial stability.
To increase your residual income:
At South River Mortgage, we prioritize ensuring that our borrowers are financially secure and meet all residual income requirements. Use our Residual Income Calculator above to quickly determine your financial standing, and speak with one of our loan experts to explore your options.
Residual income is the money left over each month after paying for essential living costs — things like your property taxes, insurance, utilities, and other debts.
It’s a way for lenders to confirm that you’ll have enough remaining cash to maintain your home and lifestyle comfortably after closing.
Residual income isn’t about proving you can repay a loan — it’s about showing you’re financially stable.
Having enough left over each month helps ensure you can keep up with property expenses and stay in good standing with your reverse mortgage.
Think of it as a financial “peace-of-mind” check before approval.
Residual Income = Gross Monthly Income – Essential Monthly Expenses
Expenses usually include:
Our calculator does the math automatically, factoring in cost-of-living differences by region and family size.
Even small adjustments can make a big difference:
We don’t just calculate numbers — we help you understand them. Our licensed specialists can: