VA Home Loan Payment Calculator
Determine your estimated monthly payment with our mortgage calculator. Simply include the home value, down payment, and loan details to estimate your mortgage payment.
How Do I Know How Much House I Can Afford?
There are a few specific factors that affect how much you can afford. Some are noted on the calculator above and include:
Length of the Loan (typically 15 or 30 years)
Property Tax Rate
Large monthly expenses (including student loans, auto loans, and any large recurring fees)
Ultimately how much you can afford is a decision made by you and your family, but our team is here to help you narrow that number down.
How Does Debt-to-income Ratios Affect VA Loans Eligibility?
Debt-to-income ratio, also known as DTI, is the relationship between your total monthly income and monthly debts. Lenders often look at DTI ratios to determine how much house you can afford prior to providing pre-approvals. While the VA does not have any DTI requirements, most lenders will set their own limits and therefore having a lower ratio is more beneficial.
It’s important to know that if your DTI is on the higher end, this doesn’t mean this makes you ineligible to receive a loan and small payments like trips to the grocery store and a tank of gas do not contribute to the monthly debts considered with DTI.
How Does Military Income Factor In?
At MHS Lending we are experts when it comes to working with military members and veterans and therefore, we understand the specific ins and outs of military income. Some VA disability income and some military allowances like Basic Allowance for Housing (BAH) are eligible to be counted when determining how much you can borrow with your VA Loan. BAH is a powerful allowance that can be allocated to paying for some of if not all of your monthly mortgage payment.
If you’re curious if the type of military allowance you receive can be used for your VA Loan, we recommend that you consult your loan officer.
What Other Income Matters?
Have you ever heard of the term “residual income”? This term refers to the amount of money you have leftover every month after any major expenses are paid in full and is a factor that lenders consider when determining how much home you can afford. Depending on the size of your family and the location you live in guidelines regarding residual income for lenders can vary but they’re important to help determine if you have enough cash to cover any unexpected expenses that may arise.
Will I Have Mortgage Insurance?
Private mortgage insurance (PMI) is often added to conventional loans when the buyer does not put a 20% down payment down. With VA Loans, this mortgage insurance additional fee is waived which is a huge benefit adding to the affordability of these loans. Without PMI military families and veterans can stretch their budgets allowing them to afford much more than those who choose other loans.
How Do Interest Rates Affect My Affordability?
Interest rates play a major role in the affordability of a home and VA Loans are known for having extremely competitive rates. Key factors like the type of loan you get, the length of the loan, and your credit score will determine your interest rate which will help you determine how much house you can afford. One major benefit of the VA Loan is that they are known for having some of the lowest rates in the industry.