VA Loan Affordability Calculator

The amount of house you can afford with a VA loan depends on your income, existing debts, credit score, and current interest rates. VA loans use a debt-to-income (DTI) ratio of up to 41% to determine affordability. Our calculator factors in your annual income, monthly debt payments, down payment, and VA disability benefits to give you an accurate estimate of your maximum purchase price.

VA loans typically allow a maximum debt-to-income (DTI) ratio of 41%. This means your total monthly debts, including your new mortgage payment, should not exceed 41% of your gross monthly income. However, some lenders may approve higher ratios with compensating factors such as excellent credit, significant savings, or VA disability income.

Yes, VA disability compensation is considered stable, tax-free income and can be used to qualify for a VA loan. Since it's non-taxable, lenders often "gross up" this income by 25% when calculating your DTI ratio. For example, $2,000 in monthly disability benefits might count as $2,500 for qualification purposes.

The VA funding fee is a one-time fee paid to the VA that helps sustain the loan program. It ranges from 1.25% to 3.3% of the loan amount, depending on your down payment and whether it's your first VA loan. Veterans with a service-connected disability rating of 10% or higher are exempt from paying the funding fee, potentially saving thousands of dollars.

No, VA loans do not require Private Mortgage Insurance (PMI), regardless of your down payment amount. This is one of the major benefits of VA loans compared to conventional mortgages, which typically require PMI for down payments less than 20%. This can save you hundreds of dollars per month.

Yes, one of the biggest advantages of VA loans is the ability to purchase a home with no down payment. VA loans are one of the only loan programs that offer 100% financing for eligible veterans, service members, and surviving spouses. However, making a down payment can reduce your VA funding fee and monthly payments.

The VA does not set a minimum credit score requirement, but most lenders require a score of at least 620. Some lenders may approve borrowers with lower scores, especially those with compensating factors. A higher credit score typically results in better interest rates and more favorable loan terms.

VA loans offer several advantages that can increase your buying power compared to conventional loans: no down payment requirement, no PMI, competitive interest rates, and the ability to include VA disability income. Additionally, VA loans have more flexible DTI requirements and may accept lower credit scores, making homeownership accessible to more veterans.