Disposable income

The money that you have left from your salary after taxes are taken out and you pay your regular monthly bills

A high disposable income is a plus since lenders will feel more comfortable that you can pay your monthly mortgage payments with ease. A high disposable income can also boost your savings, so you can make a sizable down payment on that four-bedroom house with an ocean view that you’ve always wanted. Normally, a lender looks at your disposable income when you apply for a VA loan, and sometimes a FHA loan. Disposable income is also called residual income.