Because VA disability pay is tax-free, the calculator applies the existing site logic showing how a 25% gross-up can increase counted qualifying income and affect buying power.
Your monthly disability payment starts with your VA rating, so the combined ratings guide explains how VA combines service-connected ratings before compensation is estimated.
VA Pension uses separate needs-based income rules; the pension and Aid & Attendance guide explains how those rules differ from grossing up disability compensation for mortgage qualification.
Example
Worked example
Example: a veteran receives $2,000/month in tax-free VA disability compensation. The gross-up calculator's standard method applies a 25% gross-up for mortgage qualification.
$2,000 x 1.25 = $2,500/month of qualifying income for the lender's DTI math. The veteran still receives $2,000/month in actual deposits.
Common mistakes
What people get wrong
- Budgeting with the grossed-up number instead of the real monthly deposit.
- Assuming gross-up changes the benefit amount. It is only a paper adjustment for qualification.
- Ignoring other debts that still count against DTI.
Run the numbers
Use the matching calculator to test your own dates, ratings, dependents, income, or benefit category with the same methodology described here.
Try the VA Loan Gross-Up Calculator