How Much Home Can You Afford?
Calculate the maximum monthly mortgage payment, loan amount and home price you can afford to purchase on your salary and monthly debt when using your VA financing eligibility.
Home loan affordablity calculations are based on current VA loan qualifying requirements (2021), debt to income guidelines and your selected mortgage rate and loan amortization terms.
VA Mortgage Affordability Calculation
As an eligible Veteran who is thinking about buying a home using your VA loan benefit, you may have asked yourself, "How much VA home loan can I borrow to buy a home?". Get the answer now with the VA-Home-Loans.com online home loan affordability calculator. If your not a Veteran or are ineligbile for a VA loan, try this mortgage affordability calculator to calculate the mortgage you can afford before looking at houses for sale.
What Determines Price of the Home I Can Buy?
The main qualification that determines the home price your can purchase is your income and your monthly debt.
The Department of Veterans affairs has determined that for the majority of veterans, 41% of your gross monthly income (if married, your combined family income) for your house payment and revolving debt is a comfortable and affordable debt to income ratio.
The affordability ratio should not be exceeded but the amount of VA loan you can qualify for is directly impacted by the current mortgage rate.
- ↓ Lower interest rates allow you to buy a higher priced home.
- ↑ Higher mortgage rates decrease the VA loan amount you can borrow.
VA loan rates have been at historic lows over the last few years, so this is an excellent time to buy a home.
VA Loans Allows Veterans to Afford Higher Priced Homes
An advantage of a VA loan is that eligible Veterans like you can purchase a higher priced home than non VA homebuyers using conventional or FHA home loans due to higher debt to income ratios and no monthly mortgage insurance, even with a VA zero/no down payment, 100% home loan.