How to Read Your Military LES for VA Loan Approval

Ever stared at your Leave and Earnings Statement (LES), wondering how it impacts your VA mortgage eligibility? You're not alone. Many service members face hurdles in the loan process because their LES either lacks necessary details or includes mistakes causing delays.

But here's the good news: once you understand your LES, it becomes your greatest tool to secure VA home financing. This guide clearly explains each LES section, helping you confidently navigate your loan approval.

Key Takeaways

• What is an LES? Your detailed monthly military pay stub provided by DFAS.
• Why it matters: Lenders rely heavily on your LES to verify income for VA loans.
• Common errors: Missing BAH, incorrect deductions, or confusing allotments.
• Action steps: Learn how to review and correct your LES for faster loan approval.

Pro Tip: While the VA doesn't specify a minimum credit score, lenders typically do. An accurate LES helps bolster borderline credit files (VA Lender’s Handbook, Pamphlet 26-7, Chapter 4).

What Is a Leave and Earnings Statement (LES)?

Issued by DFAS (Defense Finance and Accounting Service), your LES resembles a civilian pay stub but with much more detail, including entitlements, deductions, leave, and allowances such as Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS).

Compared to Civilian Pay Stubs, your LES:

• Includes hazard pay, special duty pay, and incentive bonuses.
• Details leave balances and projections.
• Clearly lists deductions and allotments.
• Essential for VA loan pre-approval; civilian stubs aren't enough (VA Pamphlet 26-7).

Key Sections Lenders Evaluate on Your LES

Your LES contains extensive information, but here's what's critical for VA loan approval:

1. Entitlements (Income)

• Basic Pay: Based on rank and service duration.
• BAH: Tax-free housing allowance significantly boosting your qualifying income.
• BAS: Food allowance, sometimes counted by lenders.
• Special Duty Pay: Incentive, hazard, or flight pay averaged over 12 months by lenders (VA Handbook 26-7, Chapter 4).

2. Deductions (Expenses)

• Federal & State Taxes
• Servicemembers' Group Life Insurance (SGLI)
• Thrift Savings Plan (TSP) contributions
• Allotments (auto-payments such as loans or child support)

3. Net Pay and Debts

• Net Pay: Actual take-home amount.
• Debt or Overpayments: Negative balances alert underwriters to potential risks.

Using Your LES for Mortgage Pre-Approval

Lenders look specifically for:

• Stable Income: 12 months or more of consistent earnings.
• Combined BAH & Incentive Pay: Increases borrowing power.
• Reasonable DTI Ratio: Ideally below 41% (DTI = monthly debts ÷ gross monthly income).

Common LES Mistakes Delaying VA Loans

Avoid these frequent issues:

• Missing BAH: Significantly reduces qualifying income.
• Incorrect Allowances: Delays due to incorrect income reporting.
• Too Many Allotments: Excessive debt obligations lower loan eligibility.
• Confusing Format: Not all lenders understand military pay structures well.
• Fluctuating Special Pay: May be excluded by lenders if inconsistent.

Pro Tip: Inform your lender immediately about changes or new allotments to prevent underwriting surprises.

Correcting LES Issues Before Applying

• Regularly log into MyPay and review your LES.
• Immediately report inaccuracies to DFAS.
• Suspend unnecessary allotments pre-application.
• Select a VA-specialized lender experienced in military income nuances.

Essential Documents for VA Loan Application

Typically required documents include:

• 2–3 months of recent LES statements
• Recent credit report and bank statements
• VA Certificate of Eligibility (COE)
• Statement of Service (check with your lender)

The VA requires demonstrating “stability and reliability of income” through your LES (VA Handbook 26-7, Chapter 4).

Next Steps: Maximizing Your LES for Homeownership

Here's your action plan:

1. Download your latest LES from MyPay.
2. Verify accuracy, particularly BAH and deductions.
3. Reach out to Be My Neighbor Mortgage (NMLS #1743790) for hassle-free pre-approval.
4. Use reAlpha for commission-free home purchases, further reducing your buying costs.

FAQs: Understanding Your LES for VA Loans

Where do I get my LES?‍

Access it securely through DFAS MyPay portal using your login or CAC card.

When is the LES available?‍

Usually available 3–5 days before payday. Regular review is recommended.

What is my leave worth?‍

Earn 2.5 days monthly. At separation, unused leave converts to a lump-sum based on basic pay (e.g., 30 days = 1 month’s basic pay).

Is Air Force LES different?‍

No, Air Force LES has the same sections. Reference the DFAS Air Force LES guide for specifics.

Bottom Line:‍

Your service earned you these benefits—ensure your LES accurately reflects them. A clear, error-free LES facilitates smooth VA loan approval.

Need Expert Guidance?

• Be My Neighbor Mortgage (NMLS #1743790) specializes in VA lending.
• reAlpha saves you money with commission-free real estate purchases.

Be My Neighbor Mortgage, LLC | NMLS #1743790 | Equal Housing Lender‍

This is not a commitment to lend. All loans subject to credit approval, underwriting standards, and applicable regulations. Rates and terms may vary.