Veterans Direct Mortgage

Free VA Tool

VA Loan Affordability Calculator

How much house can you actually afford with $0 down? Built on the VA's 41% debt-to-income guideline — enter your gross monthly income (BAH counts) and debts to see your buying power.

$
$
$

Monthly Housing Budget (41% DTI)

$2,475

Est. Monthly Payment

$2,475

Estimated Buying Power ($0 down)

$322,629

Uses the VA’s 41% debt-to-income guideline with $0 down and a 30-year fixed rate. Actual VA underwriting also applies a residual-income test — which often approves military families above 41% DTI — and BAH counts as qualifying income. Educational estimate only; not a pre-qualification or loan offer.

How VA affordability actually works

The VA uses two tests. The first is the 41% debt-to-income guideline: your total monthly debts including the new mortgage payment shouldn’t exceed 41% of gross monthly income. The second — unique to VA lending — is residual income: after housing and debts, a family must have a set amount of money left over each month, scaled to family size and region. Strong residual income is why VA borrowers are routinely approved above 41% DTI when the full picture supports it.

Two more VA-specific advantages: BAH counts as qualifying income for active-duty buyers, and with full entitlement there’s no loan cap — your income sets the ceiling, not a program limit.

VA buying power by income (reference table)

Estimated $0-down buying power at a 6.5% rate with $600/month in existing debts, 1.1% property taxes, and $140/month insurance — computed with the same method as the calculator:

Estimated VA buying power by gross monthly income
Gross Monthly IncomeAnnual EquivalentHousing Budget (41% DTI)Est. Buying Power
$5,000$60,000$1,450$181,004
$6,500$78,000$2,065$265,979
$8,000$96,000$2,680$350,954
$10,000$120,000$3,500$464,254
$12,500$150,000$4,525$605,879

Assumes $600/mo existing debts, 6.5% 30-year rate, 1.1% property tax, $140/mo insurance, $0 down. Residual-income review can move these numbers in either direction — this is a planning table, not an approval.

Good to Know

Questions this tool raises

How does the VA decide how much I can afford?

Two tests: a 41% debt-to-income guideline (this calculator) and a residual-income test — how much money is left each month after housing and debts, scaled to family size and region. Residual income is why VA borrowers are sometimes approved above 41% DTI when the whole picture is strong.

Does BAH count as income?

Yes — Basic Allowance for Housing is stable, grossed-up qualifying income on a VA loan. Include it in the income field. Every base page on this site lists the official 2026 BAH rates for its area.

Which debts count against me?

Recurring monthly obligations: car payments, credit-card minimums, student loans, child support, other mortgages. Utilities, insurance, groceries, and phone bills don't count as debts in DTI.

Is there a maximum VA loan amount?

Not with full entitlement — the VA doesn't cap your loan. Your income sets your ceiling, which is exactly what this calculator estimates. With reduced entitlement, county loan limits apply (the 2026 baseline is $832,750).

Why does my real pre-approval differ from this?

Underwriting sees your actual credit, exact tax and insurance figures for a specific property, and residual income. Treat this as your planning number and a pre-approval as your shopping number.

Numbers looking good? Make them official.