final-house11

How much house can one afford with a VA Loan?

Well, the answer really depends on the person.  Many financial experts say a home should not make up more than 1/3rd of a gross monthly household budget, which is a pretty good rule of thumb.  No one wants to feel house poor.  VA Loan guidelines usually limit a borrowers debt obligations to about 45% of their gross income.  This means the lender will assess other debts such as student loans and car loans when calculating this ratio, called the debt-to-income ratio.

Some lenders (like HomeBridge) will sometimes go beyond this 45% ratio when looking at the total profile of the borrower.  Some compensating factors could include great credit, substantial liquid assets, or extremely stable income.  Regardless, it’s very important to look at your total budget when purchasing home.  These mortgage calculators are a great tool to use when figuring out your housing budget.  They also do a great job of breaking down the benefit of owning versus renting.  As always, contact us with any questions.

https://www.homebridge.com/mortgage-calculator/

Other VA Loan Questions:

The Chapman Lending Team at HomeBridge Financial is honored to help dozens of veterans utilize their VA home loan benefit each and every year.  We ARE NOT a call center.  Our goal is to provide the best customer service in the industry along with the most competitive rates and fees.

Semper Fi, Dan Chapman

Please enjoy the series of articles, and contact me with any questions at all.

ChapmanTeam@HomeBridge.com

Get a Free Rate Quote  –  Start an Online Application

About the author:  Dan Chapman is the branch manager at HomeBridge Financial Services in North County San Diego, CA.  HomeBridge performs VA loans in 46 states.  Dan is a Naval Academy graduate, served as a Captain (O-3) in the Marine Corps, and is a Operation Iraqi Freedom veteran.  He has been focused on helping active duty military and veterans attain the dream of home ownership since 2007.  He is actively involved in several local veteran causes and performs VA loan seminars throughout greater San Diego on a monthly basis.  For a free consultation, please contact us anytime.

chapmanfam

Related Articles

Higher loan limits have just been announced for 2018.  This is great news for anyone looking to purchase a home in the coming year.  It is not yet confirmed that FHA and VA will increase accordingly, but most likely they will.  If you are currently in escrow and/or closing after…
Read More

The 2018 VA Loan Limits have been released. The VA loan program does not have a maximum amount a veteran can borrow using a VA loan. For 2018, the ZERO down payment limit will increase to $453,100. San Diego has increased from $612,950 to $649,750. The Chapman Lending Team at…
Read More

On December 8th, 2017, The Chapman Lending Team is proud to sponsor the Army-Navy golf tournament at Admiral Baker Golf Course.  Each year the U.S. Naval Academy gives classmates and friends the opportunity to reunite while donating to the Naval Academy Foundation. The Chapman Team will have a table set…
Read More

Most people are already aware that one of the perks of using a VA loan is the zero down payment for homes that are under the loan limits provided for your specific county.  However, another perk is becoming exempt from paying the Funding Fee if you have a service-connected disability…
Read More