Final Answer:
The residual income a borrower is required to have to qualify for a VA-backed home loan is based on d. The borrower's age.
Step-by-step explanation:
In the context of VA-backed home loans, the residual income requirement is determined based on the borrower's age.
Residual income is the amount of money that remains after deducting certain monthly obligations from the borrower's gross monthly income.
Unlike traditional debt-to-income ratios, the VA considers factors such as family size and regional variations in living costs.
The borrower's age is a crucial factor in this calculation, as it helps determine the appropriate residual income threshold.
Younger borrowers may have different residual income requirements compared to older ones, reflecting variations in financial responsibilities and needs at different life stages.
This approach ensures that the residual income standard is tailored to individual circumstances, promoting fair and realistic assessments of a borrower's ability to meet financial obligations after accounting for essential living expenses.
In summary, the correct answer is d. The residual income a borrower is required to have to qualify for a VA-backed home loan is based on the borrower's age.