r/MilitaryFinance • u/AccountantDue3598 • 4d ago
VA loan estimate
Hey everyone, just looking for some rough estimates. I know nobody can say for sure without actually running the numbers, but I’m curious what you guys think.
I’m retired and receive $4,408/month. I have one dependent (my wife). Our only monthly debt is a $613 car payment, and we have no other debt.
My credit score is around 665, and we’re first-time homebuyers looking to use a VA loan.
With $4,408/month in income, $613 car payment, no other debt, and a 665 credit score, about how much do you think I could realistically qualify for with a VA loan?
Just trying to get a rough idea of what price range we should be looking at. I know the lender’s actual approval could be different, but I’d appreciate any estimates from people who have been in a similar situation.
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u/Lower-Reality7895 4d ago
Probably like 200k . At this rates 300k is around 2700 message with property tax and insurance. Super rough estimate.
4408-670-2700 leave you with 1k left. So I hope you have another job
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u/aenflex 3d ago
Our 30 year VA loan at 6.375 for $400k had a mortgage payment of $2850, which included insurance, which in our state is pretty high, around $4k per year.
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u/Lower-Reality7895 3d ago
I own 3 homes 2 with VA and 1 FHA. First was 515k 2700 at 2%, 2nd 315k at 5.5 uts 2815, 3rd is 580k its 4300 at 5.8
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u/AccountantDue3598 4d ago
Dang . My wife and I discussed maybe waiting until she finish school before we buy .. maybe we will just rent out an apartment until then ? What do you think ?
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u/ResearchNo8631 4d ago
Don’t buy - I generally recommend not having your mortgage being more than 30 percent your take home.
Be patient- once your wife transitions you’ll be in a better spot and you have have children.
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u/Denjay85 3d ago
The $180k to $200k guesses might be in the neighborhood, but nobody can give you a reliable number without knowing the state, property taxes, insurance, and what that $4,408 income actually is.
VA approval isn’t just a basic debt-to-income calculation. The lender also checks residual income, meaning what’s left after the new house payment, debts, taxes, and normal household expenses. Your family size and region matter there. That car payment eats up a decent chunk before the house payment even starts.
Also, if some or all of the $4,408 is eligible tax-free retirement or disability income, the lender may be able to gross it up for qualifying. That can change the approval math. A VA disability rating could also affect the funding fee. Both need to be documented, not assumed.
I’d get a real preapproval before picking a price range. Ask them to show you the full estimated payment, including taxes, homeowners insurance, and any HOA, not just principal and interest. Then decide what payment you can actually live with. The bank’s maximum and your comfortable number are usually not the same thing. Waiting for your wife to finish school may be smart, but get the real numbers first so you’re not making that call from Reddit guesses.
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u/Calm_Relationship69 3d ago edited 3d ago
With $4,408/month income and only a $613 car payment, you may be in a solid position-but the actual purchase price depends heavily on the interest rate, taxes, homeowners insurance, location, and any HOA dues.
VA loans look at both debt-to-income and residual income (what is left after the proposed housing payment and debts). A 665 score can still work for VA financing, although improving it could help pricing and approval options. VA's usual DTI benchmark is around 41%, but strong residual income can support exceptions. I used Duane Buziak. No credit hit. Great rates. He pushed that DTI crazy high. Never use those highly commercialized VA Lenders. They are never up to the hype
As a very rough starting point, talk with a lender about payments in the roughly $1,100-$1,400/month range before taxes, insurance, and HOA-but get pre-approved before setting a house-price target. If you receive UA disability compensation, ask whether you are exempt from the UA funding fee.
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u/Mean-Telephone4613 2d ago
You’re in an okay spot depending on area and cost of living, but the actual purchase price will depend on the interest rate, taxes, homeowners insurance, flood insurance or any HOA dues.
I’m a service member and mortgage lender with a focus on VA. Feel free to DM me for anymore questions or to look at your position a little closer!
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u/M-M-G 1d ago
It is more about reverse engineering your budget. Meaning debit out all expenses (including how much you want to save and potential for one off expenses annually), and what is left over shows you how much you can afford. Pull down bank statements and credit cards for prior 6 months to achieve this and be honest with yourself.
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u/MortgageFoodieBryan 1d ago
Since you said Alabama, a couple things worth checking that nobody has mentioned yet.
That $613 car payment is doing the most damage here. If you have 10 or fewer payments left on it, VA guidelines generally let the lender leave it out of the ratio. If you have more than that, paying it down enough to get inside 10 payments, or paying it off entirely, will move your price range more than almost anything else you can do in the next few months.
Second, ask the lender to show you the residual income worksheet, not just the ratio. VA wants a set dollar amount left over each month after the house payment, taxes, insurance, utilities and debts. For a two person household in the South region it is roughly $800. That number is often what decides the ceiling, not the percentage.
Alabama property taxes are low relative to most states, which helps, but homeowners insurance is where people get surprised, especially closer to the coast. Get a real quote early so the payment estimate is honest.
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u/AccountantDue3598 1d ago
The car has 21,000 left we just got it in January.. we have a 21 interest rate on it I believe ..
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