Yes, BAH and BAS is counted as qualifying income on VA loans, and it can be grossed up 115% since it's not tax deductible. This will reduce the DTI ratio but when it comes to meeting the residual income, only the base BAH and BAS income is used...not the grossed up amount.
I could tell by looking at your LES if there is any other special pay income that could be used. Do you have any other deductions or allotments?
I too am a Certified Military Housing Specialist, but to be honest, the 1 hour webinar and pseudo test we all took to get that designation does little to nothing to making sure a loan officer or realtor knows how to get a VA loan approved. The non-profit basically taught us about some military specific acronyms, rank, discussed the various branches of services, some history of each branch, and a few other things.
Has a lender run your file through the DU Automated Approval system? Your FICO score will also have an impact on how high of a DTI ratio allowed as well as any reserves or savings listed on the 1003 application.
If your revolving credit cards are close to being maxed out, that could play a factor as well. It concerns underwriters and the automated system when a person is over-utilizing or maxing out their credit lines.
If you would lie to discuss qualifying for your VA loan, give me a call (951) 215-6119.