How To Find Out The Ideal Home Price For You Under A VA Loan

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The search for a home is stressful enough, but not knowing if you can afford one adds to the stress. Consider the available loan types. One of those loan types is a VA loan. If you’re in the market for a VA loan, you need to know how much you qualify for to know which homes to consider buying. It’s terrible to fall in love with a house you can’t get funded for. Here are some tips on how to calculate that.


In order to qualify for a VA loan, you need to have a certain credit score and a job that provides proof of a steady income, just like any loan. This is a loan that many select because it’s easier to qualify. The credit requirement isn’t as high as other loans. Closing costs are lower, as well, making it a great choice. When you consider the fact that they require no funding fee, you can buy a house with no money due at closing. Here are the qualifications.

• You qualify if you are on active duty.

• When you are a reserve, you can sometimes qualify.

• If your spouse is a veteran, then you can qualify.

VA Loans Earned

It’s important to note that there are additional requirements, even if you qualify under all the other rules. Most service members discover that they must meet certain other criterion to qualify. They must serve for two years. Reserve members must have served for 6 years. Active duty applicants need 90 days of service during wars. Peacetime active duty applicants must have served for 181 days.

How Much?

If you’re asking yourself, how much house can I afford with a VA loan, then let’s take a look. Your “debt ratio” is what you call the number that reflects how much of a loan you qualify for. It looks at your debt and the amount of money you make to determine how much of a VA loan you can afford. It divides your debt obligations by your monthly income. They look at your gross monthly income. 

That debt ratio consists of your principal and the interest payment. It includes all the other additions to that, like monthly HOA fees and property tax. Then they look at the other credit obligations that you have. You should take note that they only look at the credit that is reported to the credit bureaus. Your monthly bills like electric and other utilities aren’t included in those calculations. This is helpful for applicants. Also, this is how you find out how much of an ideal home price you can afford under a VA loan. That way, you find it faster and get moved in and settled.


One of the things that surprise applicants the most is the fact that there are actual limits to how much any applicant can receive in their loan. There are also limits to how many loans one individual can get at the same time. This started to help avoid people abusing the loan system. Here are the details of these limits. You have 60 days from the day of closing to occupy your new home. You must sell the first VA home and settle the loan before you can get another VA home loan. 

There are exceptions to these rules that may be of interest to you. If you receive military reassignment, you are able to have more than one VA loan at a time. Take note that you can’t get a second home, like a vacation spot, using the VA loan. It must be your primary residence. You’re free to get other loan types if you qualify, but you can’t have a second home using a VA loan as well.

Now that you know how to qualify for a VA loan, you can take that and find your home with the funding in place. It helps your realtor as well because they don’t waste their time or yours looking at homes you can’t afford. When they have the loan amount ready and know what you are looking for, they can help you get into the home of your dreams. If you’re coming back from active duty or moving a family on a reassignment, this is a wonderful way to have peace of mind while searching for your new home.