Asset-based income and VA's residual income test are two different levers, and the second one may matter more for you. Using a large retirement balance as qualifying income (often called asset depletion) is a well-established technique on conventional loans. A borrower with a substantial 401(k) or Thrift Savings Plan balance can have a portion of it treated as monthly income through a structured calculation. We have used it for clients with large accounts to bridge an income gap on a conventional file. On VA specifically, do not assume that same treatment transfers; we would not count on it in the same way, so confirm with a lender who knows the program. What often gets missed: VA does not qualify you on debt-to-income alone. VA treats 41% DTI as a benchmark, not a hard cap, and leans heavily on residual income, the actual dollars left over each month after your obligations. When DTI runs above 41%, the file generally needs residual income at least 20% above the regional table minimum plus compensating factors, and a well-qualified veteran with strong residual income can be approved at DTI levels most other loan types will not allow. So if a lender told you that you did not qualify, that may be the lender's own overlay talking rather than an actual VA rule. Some large call-center VA lenders cap DTI well below what VA itself permits. It is worth having someone without that restrictive overlay look at the full file, which is exactly what we do on the free Roadmap conversation (about 20 minutes) where we run your real numbers.