To calculate how much home you can afford with a VA loan, VA lenders will assess your debt-to-income ratio (DTI). DTI ratio reflects the relationship between your gross monthly income and major monthly debts. Our calculator uses the information you provide about your income and expenses to assess your DTI ratio.
There isn’t a hard cap on DTI ratio for VA loans. Benchmarks can vary by lender and the borrower’s specific circumstances. Buyers whose DTI ratio exceeds 41 percent will encounter additional financial scrutiny, but that’s by no means a strict cutoff.
During the VA loan process, lenders gather debt information from credit reports, looking for big or recurring payments. Expenses like groceries, gas and other lifestyle needs typically do not factor into VA loan affordability calculations.