How Much House Can You Afford With A VA Loan?
Author:
Ashley KilroyApr 4, 2024
•7-minute read
Veterans, service members and eligible surviving spouses with dreams of homeownership have one of the most favorable loan products at their disposal: the Department of Veterans Affairs (VA) loan. These loans have low credit requirements and no down payment, helping qualifying buyers afford home purchases across the country. That said, your purchasing power with a VA loan depends on such factors as your financial well-being, location and interest rate. Here’s how to know how much house you can afford with a VA loan and tips to lower your mortgage payment.
How Much Home Can You Afford With A VA Loan?
How much house you can afford with a VA loan depends on your financial circumstances. Your credit history, income, property type and down payment will all affect your loan size and how much house you can buy. These factors will be explored in-depth further in the process. However, there are a few tools you can use to get a quick estimate of what you can afford.
The 28% Rule And VA Loans
One popular method for determining how much VA loan you can afford is the 28% rule, which states that your monthly housing payments should make up no more than 28% of your gross monthly income. While other factors like your debts and recurring payments can impact how much house you can afford, knowing what 28% of your gross monthly income is can give you a good estimate of how much you can afford to spend on your VA loan payment.
VA Loan Affordability Calculator
The Rocket MortgageⓇ loan affordability calculator can help estimate how much house you can afford with a VA loan. Using information like your income level, desired property type, borrowing history and location, the calculator will estimate what you’re eligible for using a VA loan.