Nathan Strodtbeck, REALTOR®

VA Calculator

How much home can you really afford?

Real VA underwriting math: residual income, gross-up, BAH, and the funding fee waiver most calculators miss.

Income

Your qualifying income

VA loans allow tax-free income (like disability compensation) to be grossed up by 25%, increasing your qualifying power.

Your gross monthly base salary or pay.

Used to look up your BAH rate.

Used for BAH lookup.

Auto-filled from your ZIP and pay grade. Edit if your situation differs.

Affects BAH rate.

Basic Allowance for Subsistence. Leave blank if not applicable.

VA Disability Compensation

Tax-free disability pay is grossed up by 25%, significantly increasing your qualifying income. If you receive disability compensation, this also waives your funding fee, saving thousands at closing.

0% = no benefit entered.

Auto-filled from rating, or enter your actual amount.

Part-time work, rental, etc. per month.

e.g. non-taxable Social Security. Grossed up 25%.

Everyone who will live in the home. Used for residual income test.

Car loans, student loans, credit card minimums, alimony, etc. Do not include rent or future mortgage.


Loan Details

Loan assumptions

VA loans have no PMI regardless of down payment. Adjust these to match your situation.

Most VA buyers use 0%. Can affect funding fee.

Affects funding fee (if not exempt).

National 30-year fixed average from the Federal Reserve. Talk to a lender for a personalized quote.

%

Fallback rate · as of 2026-04-03

Kent County averages 1.0–1.7%. Your lender will verify.

%

$2,000/yr is a common estimate. Varies by home and insurer.

Used to estimate utilities/maintenance for the residual income test.

This website is not affiliated with, endorsed by, or sponsored by the U.S. Department of Veterans Affairs or the Department of Defense.

BAH rates sourced from DTMO (public domain, 17 U.S.C. § 105). Disability rates from VA.gov. Interest rate from bundled fallback, as of 2026-04-03.

How this works

What civilian calculators get wrong

Standard online mortgage calculators are built for conventional loans. They miss several key elements of VA underwriting that significantly affect what you can actually qualify for.

1. The residual income test

VA requires that after paying your mortgage, debts, estimated taxes, and utilities, you have at least a minimum amount left over each month. For a family of 4 in Michigan (Midwest region), that's $1,003/month. Most online calculators don't check this, but VA lenders always do. If you don't pass the residual income test, the lender won't approve the loan even if your DTI looks fine.

2. Tax-free income gross-up

VA disability compensation is not taxable. Because it doesn't get reduced by taxes, VA guidelines allow lenders to multiply it by 1.25 when calculating your qualifying income. A veteran receiving $2,000/month in disability compensation qualifies as if they earn $2,500/month. This can add $40,000 to $60,000 to your purchase price.

3. The funding fee waiver

Veterans who receive (or are eligible to receive) VA disability compensation pay $0 in VA funding fee. On a $400,000 loan with no down payment and first-time use, that's $8,600 saved at closing. Most veterans don't know about this exemption, and civilian calculators never show it.

4. No PMI, ever

Conventional loans with less than 20% down require private mortgage insurance, often $150 to $300 a month. VA loans have no PMI regardless of down payment. This directly increases how much home you can qualify for at the same monthly payment.

Important: This calculator provides estimates for educational purposes only. Actual loan terms, eligibility, and qualifying income are determined by your lender. Consult a VA-approved lender for an official qualification. Interest rates shown are national averages and may not reflect the rate you'll receive.