In general, this includes sources such as your salary, a spouse’s salary, or pension/retirement. Your lender will want to check that there is a steady and reliable source of income coming in to repay the loan amount. The following is a range of financial variables home buyers are able to input into the calculator to determine a digestible monthly payment: These variables are important because not only do they determine if you can qualify for a loan, they also influence the rates and terms you will repay on a loan. How Does a VA Affordability Calculator Work?Ī VA affordability calculator works by providing home buyers with a formula that combines specific inputs that calculate monthly payments on the individual homebuyer’s financial records and statements. This is why a VA affordability calculator is a useful preemptive tool that can help home buyers define the parameters of how much home they can realistically afford. However, you should expect a deeper analysis of your financial records and may be asked to provide evidence of financial cushioning and accountability to mitigate the risk on a loan. If your DTI exceeds 43%, it is still possible to qualify for a VA loan. Typically, a lender will require a DTI of 43% or lower. Your DTI indicates the relationship between income received and what portion of it is eaten by major monthly debts.

To qualify for a VA loan, your lender will want to assess your debt-to-income ratio (DTI). What is a VA Affordability Calculator?Ī VA affordability calculator acts as a pre-approval tool by estimating how much house you can afford based on your income and expenses. If you are not sure how much home you can afford with a VA loan, a VA affordability calculator is a great place to start in determining feasible monthly payments. While the VA loan program is able to offer more favorable terms to qualified applicants who have served in a military capacity with more lenient requirements, there are still some fundamental qualifying factors that must be upheld under financial scrutiny. Lenders will take several financial factors into consideration when approving home buyers on a loan.

Va home loan calculator