VA residual income in Kaufman County: how taxes, MUDs, PIDs and HOA dues change your number

Short answer: VA residual income is the money a household has left each month after taxes, debts and the full cost of running the house. In Texas, a family of four needs at least $1,003 left over on loans of $80,000 or more. Out here in Forney and the rest of Kaufman County, the "cost of the house" side can include MUD taxes, PID assessments and HOA dues on top of regular property taxes. The good news for disabled veterans: Texas exemptions can cut the tax line a lot.

Happy Veterans Day to everyone who served, and to the families who served right alongside them. This one's for you.

What VA residual income is

VA uses two main tests to see if a loan fits your budget: your debt-to-income ratio and your residual income. Ordinarily, you need to meet both. (38 CFR 36.4340(c))

Residual income is what's left for groceries, gas, clothes and everyday life after your income taxes, your debts and your monthly shelter costs come out. VA's handbook treats it as the more important of the two tests and calls the debt ratio "secondary to the residual income." (VA Lenders Handbook, M26-7, Chapter 4)

The Texas table (South region)

Texas is in VA's South region. Here's the current table for loans of $80,000 and above. (38 CFR 36.4340(e))

Bigger family? Add $80 for each extra person, up to a family of seven. (Loans under $80,000 use a lower table.)

Two things people miss:

• "Family" means everyone in the household, not just the people on the loan. (38 CFR 36.4340(e))
• The table is a guide, not the whole story. Meeting it doesn't mean automatic approval, and missing it doesn't automatically mean a denial. (38 CFR 36.4340(c))

What gets counted on the house side

VA's worksheet doesn't just look at the mortgage. The monthly shelter expense includes (M26-7, Chapter 4):

• Principal and interest on the new loan
• Property taxes. If taxes are expected to go up, the lender uses the higher amount.
• Homeowners insurance, plus flood insurance if required
• Special assessments, if any are expected (this is where a PID can show up)
• HOA dues for homes in a planned community
• Maintenance and utilities at 14 cents per square foot of living area

The regulation also tells lenders to estimate taxes, assessments and utilities "based on property location and type of house," not a rule of thumb, and to use the increased amount if taxes or special assessments are expected to rise. (38 CFR 36.4340(i))

That's why the same price can work in one Kaufman County neighborhood and feel tight in another.

MUD, PID and HOA in 30 seconds

• MUD (Municipal Utility District): A separate taxing district, usually for water, sewer and drainage. It adds to your tax rate.
• PID (Public Improvement District): Pays for neighborhood improvements. Depending on the district, it's either a rate on your value or an annual installment set for your lot.
• HOA: Dues to the homeowners association. Not a tax.

Let's run a typical Kaufman County house

Illustration only. These are example numbers built from published public data to show how the lines work. This is not a specific home, not a loan offer and not a quote. Tax rates change every year, and your actual taxes, HOA and assessments depend on the exact address.

The house: I used Kaufman County's October 2026 median list price of $324,900 and median listing size of 2,125 square feet, both from Realtor.com data on FRED. (Median list price, median size)

Two example locations:

• Example A, inside Forney city limits, no MUD. Using 2025 rates from the Texas Comptroller: Kaufman County 0.415113 + Forney ISD 1.2869 + City of Forney 0.421431 = 2.123444 per $100. (Texas Comptroller, 2025 tax rates and levies) I assumed no HOA for this one so you can see taxes on their own.
• Example B, a Forney MUD community. Bloomfield Homes' Nov 9, 2026 sheet for its Devonshire community in Forney lists a tax rate of 2.75 per $100 with the Kaufman County MUD cost included, and HOA dues of $780 a year. (Bloomfield Homes, Devonshire community sheet) That's the builder's published figure. Verify it with the tax office.

The monthly lines (before principal, interest and insurance)

Math: $324,900 x 2.123444% / 12 = $574.92. $324,900 x 2.75% / 12 = $744.56. $780 / 12 = $65. 2,125 x $0.14 = $297.50. (Rounded.)

Same price, same size, and Example B carries about $235 more a month in these lines. The tax rate gap alone is about $170 a month.

Now add the family-of-four residual guideline of $1,003. Before you even get to the loan, principal, interest or insurance, a family of four would need roughly $1,875 a month left after income taxes and debts in Example A, and about $2,110 in Example B, just to cover these lines plus the residual minimum.

What a PID could add

Neither example above has a PID. But some Kaufman County neighborhoods do. On the Comptroller's 2025 list, two Kaufman County PIDs show rates of 0.12 and 0.54 per $100 (Fox Hollow PID #1 and Spradley Farms PID). (Texas Comptroller, 2025 special district rates)

On our $324,900 example, that would be about $32 a month at 0.12 or about $146 a month at 0.54. Other PIDs bill a set annual installment per lot instead of a rate, so always get the PID notice and the actual annual amount for the lot you're buying.

Where Texas disabled-veteran exemptions come in

This is the part I want every veteran in Kaufman County to know.

Tax Code Sec. 11.22 (10% to 100% ratings). A disabled veteran can take a partial exemption off the property's value, based on the VA disability rating. It can be applied to any one property the veteran owns. (Texas Comptroller, Disabled Veteran FAQ)

Tax Code Sec. 11.131 (100% or individual unemployability). A veteran awarded 100% disability compensation for a service-connected disability, with a rating of 100% disabled or individual unemployability, is exempt from taxation on the total appraised value of their residence homestead. (Tax Code Sec. 11.131; Comptroller, 100% Disabled Veteran FAQ) The Comptroller notes a veteran can receive both exemptions.

Homeowners who live in the home as their residence homestead can also claim the general homestead exemption, which takes $140,000 off the value for school district taxes. (Tax Code Sec. 11.13(b))

Example A with exemptions (illustration)

Math: $140,000 x 1.2869% / 12 = about $150 off the school portion. $12,000 x 2.123444% / 12 = about $21 more. Rounded, using 2025 rates, ignoring any extra local exemptions a county or city may offer.

What exemptions don't touch: HOA dues aren't taxes, so they stay. For a PID, ask the PID administrator in writing how your exemption is treated, because PIDs are set up differently. And maintenance and utilities still count at 14 cents a foot.

One more practical point: These exemptions aren't automatic. You apply with the appraisal district once you own the home (Form 50-135 for 11.22, Form 50-114 for the homestead and 11.131, per the Comptroller FAQs linked above). Ask your Loan Officer how the tax line will be estimated on your file before the exemption shows up on the tax roll.

Before you write an offer in Kaufman County

• Get the exact tax rate for the address (city or not, which ISD, any MUD).
• Ask if the home is in a PID, and get the PID notice and annual amount.
• Get the HOA dues and any one-time fees.
• Know the square footage. Bigger homes cost more on the worksheet.
• Count everyone in your household, plus child care and monthly debts.
• If you have a VA disability rating, bring your award letter so we can talk through exemptions.

More on buying with a VA loan in our area:

• What a VA loan really costs in Kaufman County
• What the VA disability COLA means for your home search

FAQ

What is VA residual income for a family of four in Texas? $1,003 a month on loans of $80,000 or more. Texas is in the South region. (38 CFR 36.4340(e))

Do HOA dues count? Yes. HOA dues for a planned community are part of the shelter expense. (M26-7, Chapter 4)

Do MUD taxes count? Yes. A MUD is part of your property tax rate, and property taxes are on the worksheet.

How does VA estimate utilities? 14 cents per square foot of gross living area. (M26-7, Chapter 4)

Does a 100% disabled veteran pay property taxes on their Texas home? Under Tax Code Sec. 11.131, a qualifying veteran's residence homestead is exempt from taxation on its total appraised value. You still have to apply with the appraisal district. (Comptroller FAQ)

Want your number run on a real house?

Text me the address at 972-951-6987. I'll walk the VA worksheet lines with you, including taxes, MUD, PID, HOA and any exemptions you qualify for, before you make an offer.

Sources

• 38 CFR 36.4340 (eCFR): https://www.ecfr.gov/current/title-38/chapter-I/part-36/subpart-B/subject-group-ECFR4f8ba9f3fd6c3e5/section-36.4340
• VA Lenders Handbook (VA Pamphlet 26-7), Chapter 4: https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000330850
• Realtor.com via FRED, Kaufman County, October 2026: https://fred.stlouisfed.org/series/MEDLISPRI48257 and https://fred.stlouisfed.org/series/MEDSQUFEE48257
• Texas Comptroller, 2025 tax rates and levies (county, city, school district, special district files): https://comptroller.texas.gov/taxes/property-tax/rates/
• Bloomfield Homes, Devonshire (Forney) community sheet, generated Nov 9, 2026: https://www.bloomfieldhomes.com/pdf/tx/forney/devonshire/
• Texas Tax Code Ch. 11 (Secs. 11.13, 11.22, 11.131): https://statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
• Texas Comptroller, Disabled Veteran FAQ: https://comptroller.texas.gov/taxes/property-tax/exemptions/disabledvet-faq.php
• Texas Comptroller, 100 Percent Disabled Veteran FAQ: https://comptroller.texas.gov/taxes/property-tax/exemptions/disabledvet-100-faq.php

Serving Rockwall County, Kaufman County, and the greater DFW area.

Dylan Hernandez, Loan Officer, NMLS #2681224 | One Real Mortgage Corp., NMLS #198414 | Equal Housing Opportunity

Real Broker, LLC, TREC #9003138 | Dylan Hernandez, TREC #0787987 | DH Real Estate Group

Not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency.

This is general information, not a commitment to lend or legal or tax advice. The examples use published tax rates and fees for illustration only. Your actual costs and qualification depend on the specific property and your full application. Not all applicants will qualify.