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.
Learn more: How VA income qualification works
The 1.25x gross-up is one of the most powerful features of VA loan qualification. If you receive tax-free income, such as VA disability compensation or certain types of non-taxable Social Security, lenders multiply that income by 1.25 before calculating your debt-to-income ratio. This reflects the fact that you keep more of each dollar, since no federal or state income tax is withheld.
What qualifies for the gross-up: VA disability compensation at any rating, Combat-Related Special Compensation (CRSC), Concurrent Retirement and Disability Pay (CRDP) to the extent it is non-taxable, non-taxable Social Security benefits, and certain other non-taxable government payments.
What does NOT get grossed up: BAH and BAS are tax-free, but VA lenders accept them at face value rather than applying the 1.25x multiplier. This is standard practice per VA Lenders Handbook Chapter 4.
Real-world example: A veteran with $3,500/month base pay and $1,800/month VA disability compensation qualifies using $3,500 + ($1,800 x 1.25) = $5,750/month. Without the gross-up, qualifying income would only be $5,300. That extra $450/month can mean $60,000+ more in purchasing power.
This website is not affiliated with, endorsed by, or sponsored by the U.S. Department of Veterans Affairs or the Department of Defense.
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.
BAH does not qualify for the waiver. Exemption applies only if you receive VA disability compensation at any rating, are rated individually unemployable, are a Purple Heart recipient on active duty, or are a surviving spouse receiving DIC.
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).
Your credit score affects your interest rate. VA loans have no minimum, but most lenders require 620+.
National 30-year fixed average from the Federal Reserve. Talk to a lender for a personalized quote.
Base: 6.85% + credit adj: +0.125% = 6.97%
Fallback rate · as of 2026-04-03
Learn more: VA loan funding fee, limits, and credit score impact
Funding fee waiver eligibility: The VA funding fee is waived entirely for veterans receiving VA disability compensation at any rating (10% or higher), veterans with individually unemployable ratings, Purple Heart recipients serving on active duty, and surviving spouses receiving Dependency and Indemnity Compensation (DIC). Receiving BAH alone does not qualify for the waiver. On a $300,000 home with 0% down and first use, this waiver saves approximately $6,450.
VA loan limits: For veterans with full entitlement (no active VA loans), there is no loan limit as of January 1, 2020, thanks to the Blue Water Navy Vietnam Veterans Act of 2019. Veterans with reduced entitlement (an existing VA loan) are subject to county-level limits based on the FHFA conforming loan limit ($766,550 in most areas for 2025).
Credit score and VA rates: Unlike conventional loans, VA loans do not use Fannie Mae/Freddie Mac Loan-Level Price Adjustments (LLPAs). However, individual lenders still apply their own rate adjustments based on credit score. This calculator uses approximate rate offsets to reflect the typical spread a VA borrower would see. A higher credit score generally means a better rate, even with a VA loan.
VA.gov: Funding fee and closing costs
This website is not affiliated with, endorsed by, or sponsored by the U.S. Department of Veterans Affairs or the Department of Defense.
Auto-filled from your ZIP code. Kent County averages 1.0% to 1.7%.
Grand Rapids avg (homestead)
Auto-filled from your ZIP code. Varies by home and insurer.
West Michigan avg
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.
Learn more: Understanding your VA affordability results
The residual income test is unique to VA loans. Unlike conventional or FHA loans, which only check your debt-to-income (DTI) ratio, VA lenders must also verify that you have enough money left over each month after paying all major obligations. The VA sets minimum residual income amounts based on your family size and the region where you are buying. Michigan falls in the Midwest region.
Why your VA max may be lower than expected: If the residual income test is the binding constraint (shown in the results), it means your monthly leftover income after housing costs, debts, taxes, and estimated utilities falls below the VA minimum. In this case, the calculator reduces the max home price until the residual test passes, even if your DTI ratio alone would allow a higher price. This is a protection built into the VA program to help prevent financial hardship.
DTI vs. residual income: The calculator checks both constraints. Your maximum home price is the lower of the two results. A DTI of 41% is the VA standard ceiling, but lenders can approve above 41% in some cases if residual income is strong. This calculator uses 41% as a firm cap for conservative estimates.
Real-world example: A family of 4 in Michigan needs at least $1,003/month in residual income. If a veteran's DTI-derived max is $350,000 but the residual income test only passes at $320,000, the calculator shows $320,000 as the maximum, and notes that residual income is the limiting factor.
This website is not affiliated with, endorsed by, or sponsored by the U.S. Department of Veterans Affairs or the Department of Defense.
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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.