VA Loan Affordability Calculator
Use the following calculator to determine the maximum monthly payment (P+I) and the maximum loan amount for which you may qualify.
Use the following calculator to determine the maximum monthly payment (P+I) and the maximum loan amount for which you may qualify.
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.
One of the first steps in the homebuying process is determining your price range. Our VA loan affordability calculator estimates how much you can afford using a VA home loan based on your financial situation.
The 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. Simply input your values into the corresponding areas and it will automatically calculate a home price budget for you.
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.
Effective income on a VA loan must be stable and reliable. This usually includes your salary, spouse's salary, pension or 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. If you are a self-employed Veteran, you may have some additional documentation to provide.
Your monthly expenses include all of the things you pay on a monthly basis, such as your car payment, student loan payment or credit card payment. This can impact how much money you have to commit to your monthly mortgage payments, ultimately affecting how much house you can afford. It is advised to have a debt-to-income ratio of 41 percent or lower.
VA loans do not have a minimum credit score requirement. However, with a lower credit score, you’ll usually pay a higher interest rate and more fees that could increase your monthly mortgage payment.
Lenders look at your credit score to evaluate your financial responsibility. They want to ensure you will make your mortgage payments on time. Typically, they want to see a FICO credit score of at least 620. If your credit score is lower, lenders might consider you a riskier borrower and increase the price of your loan.
VA loans have a one-time fee known as a VA funding fee. This payment goes to the federal government and helps keep the VA program running for future generations. The funding fee is 2.15% of the loan for first-time VA loan users and 3.3% for each subsequent use.
Veterans receiving disability benefits, military spouses and Purple Heart recipients are exempt from paying the VA funding fee.
A VA loan preapproval allows a lender to tell you how much you qualify for. This shows lenders and sellers you are serious about purchasing a home. Being preapproved for a VA loan before you begin your home search can offer you a more accurate idea of your price range.
To start the VA loan preapproval process, you must provide documentation of your employment history, military service, and other vital information to determine your eligibility to your lender. Lenders will then pull your credit report after having permission.
If your credit score meets the lender’s standards, the next step is providing proof of income or other relevant documents depending on your current financial situation. These could include bank statements, W-2s, disability award letters and more.
If all the information fits within your lender’s requirements and is accounted for, you will receive a preapproval letter from the lender.
Once you’ve determined the home price you can afford, use our VA loan mortgage calculator to find out and break down your monthly mortgage payments.
