Hoping to use your military benefits to buy a home with a VA loan? This great loan product is popular with Veterans because it requires no down payment, has low interest, and has many other money-saving features that make it much more affordable than a conventional or FHA loan.
Though you might dream of owning a castle on the hill, your VA loan will help you buy a home that is affordable and in line with your budget and income. To figure out how much home you can afford, use our VA loan calculator to estimate monthly payments. Be assured that both the lender and the VA have their own VA loan calculator that they are using to determine the amount of money they will lend you, and in the case of the government, how much of your loan they will guarantee.
The VA loan calculator from FortressVALoans.com will tell you the amount of your monthly payment. To use it, you must enter in the following information:
Using a VA mortgage calculator is handy for estimating your monthly out-of-pocket cost for your new home. Your exact figures will be based on the calculations performed by your lender and by the VA.
Having a VA loan does not limit the price of home you buy, but there are federal limits on how much the government will back. Currently, in most areas of the country, the amount is $417,000. If your credit and income is so good that you can afford a home substantially more costly than $417,000, you can buy it, but the government will only guarantee the loan up to $417,000.
The VA’s version of a VA loan calculator factors in both the limits and your eligibility. Every Veteran accepted into the program is offered a basic entitlement of $36,000. The VA will back up to four times that amount, so up to $144,000. For buyers who qualify for $417,000, or whatever the prevailing upper limit is in your area, the VA offers an additional $68,250 in entitlement for a total amount of $104,250. If you buy a house that is only $100,000, the VA will back a quarter of that amount or $25,000, while if you select one that hits the top of the limits, the government will back a total of $104,250.
Your lender figures the amount of the actual loan it will offer you, based on his own calculations. Lenders like FortressVALoans.com will factor in your income, your debt-to-income ratio, and your credit history in paying past debts to determine the amount they will actually loan you.
Each lender has its own criteria. While all lenders strive to make good loans to responsible borrowers, some are a bit more lenient than others. That is why if you are refused a VA loan, you might try another lender or take other steps such as finding a lower-priced home, offering some money down, or working on your credit for a few months before reapplying.
FortressVALoans.com is a VA-approved lender that wants to see you in a new home. That is why we will not only help you obtain necessary proof of eligibility, such as your DD 214 and your COE, but we will also guide you through the preapproval process and be at your side until you have the keys in hand for your “castle.” To get the process started, fill out our online preapproval application, or contact one of our loan specialists for help obtaining your paperwork or to address any questions you might have.