Why Paying Off Debt Matters for VA Loan Readiness

Paying down debt isn’t just about peace of mind—it can also make a difference when preparing to qualify for a VA home loan.

The VA Lender’s Handbook (VA Pamphlet 26-7, Chapter 4) explains that lenders must review a borrower’s credit, monthly obligations, and residual income—the amount left over after paying debts and expenses. A high amount of revolving debt or late