How Much Can I Afford with a VA Loan?

DISCLAIMER: The figures above are based upon VA's debt-to-income ratio which is a ratio of total monthly debt payments (housing expense, installment debts, and so on) to gross monthly income. The VA has determined the acceptable ratio to be 41% and it is used as a guide. In circumstances where the ratio exceeds 41%, the VA automatic underwriter can consider the ratio in conjunction with all other credit factors. Calculations by this tool are believed to be accurate, yet are not guaranteed. Further review is necessary to obtain an exact qualification.

Calculating VA Loan Affordability

One of the first steps in the homebuying process is determining your price range. Our VA loan affordability calculator gives you an estimate of how much you could afford using a VA home loan based on your financial situation.

Our calculator uses information from you about your income, monthly expenses and loan term to calculate an estimate of what you may be able to afford.

The VA loan affordability calculator is set to the top end of the VA's recommended DTI ratio of 41 percent. Learn more about how we calculate affordability below.

Annual Income

Income that may count towards a VA loan must be stable and reliable. Stable and reliable generally includes sources such as your salary, spouse's salary, pension/retirement, part-time income and bonuses (if they are reliable and anticipated to continue). Your lender typically requires two years of W2s and current pay stubs to verify income.

Monthly Expenses

Your monthly expenses include all of the things you regularly have to pay for each month. This can have an impact on how much money you have to commit to your monthly mortgage payments, ultimately affecting how much house you can afford.

Although this can include a range of costs, from grocery bills to streaming services, some of the largest expenses include auto payments, credit card payments and utilities.

Disability and Prior VA Loan Use

If you're VA disabled, have a purple heart or are a military spouse, you're exempt from the VA funding fee - typically 2.3 percent of the loan amount.

Homebuyers who've used a VA loan before and aren't exempt from the VA funding fee typically pay a higher VA funding fee - generally 3.6 percent of the loan amount. However, the VA funding fee decreases if you put more than 5 percent down.

Calculate Your Monthly Mortgage Payment

Once you've determined the home price that you can afford, use our VA loan mortgage calculator to figure out how much you'll pay each month for your mortgage.