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Is the GI Bill Income Accepted With a VA Loan?

Can the GI Bill Income Be Used For a VA Loan:

The short answer is unfortunately, No. 


The GI Bill income cannot be utilized when applying for a VA loan. VA lenders evaluate only the “effective” income for loan consideration. This evaluation emphasizes the importance of stability, reliability, and potential continuity in income sources. Lenders value these key traits across various loan types, including VA, FHA, and conventional loans.

Reasons Why GI Bill Income Cannot Be Utilized for a VA Loan

The instability, unreliability, and discontinuity of GI Bill funds pose a challenge. Unlike a 30-year mortgage, the short duration of schooling adds to this issue. Moreover, the fluctuating nature of this income can cause concern for lenders, affecting veterans’ financial planning stability.

What Income Can I Use for the VA Loan?

Stability and consistency play vital roles in income and VA loans. Lenders consider different income sources for mortgages, such as base pay, housing (BAH) allowances during active service, retirement income, rental earnings, and more.

Self-employment income poses unique challenges for both military borrowers and lenders. In such cases, lenders often request self-employed borrowers to provide a minimum of two years’ tax returns. These tax returns serve as evidence of a consistent financial history, which is a prerequisite before advancing with a mortgage application. This requirement aims to ensure the financial stability of the borrower and the feasibility of the mortgage agreement.


If you find yourself unsure about your current income status and seek clarity, it’s highly recommended to reach out directly to a VA loan specialist. Engage in a detailed discussion with them to address any questions or concerns you may have and to thoroughly explore the potential options available to you. For personalized assistance, don’t hesitate to contact Elevation Mortgage at 719.247.6622.

Picture of Reed Letson

Reed Letson

Reed offers two decades of expertise as a mortgage broker, focusing on veterans and first-time home buyers. With a strong grasp of real estate and mortgage markets, he empowers clients with practical insights. Reed's passion is guiding clients to build wealth through real estate investments and financing solutions.

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