Debt to Income Ratios

How much money can you borrow for a VA loan?

Debt to Income ratios are used by the VA to help assess whether a borrower can afford to repay the loan. Most loans today will use some form of this ratio, but the VA also takes additional items into consideration regarding repayment. For instance, the overall finished size of the house, as well as if the borrowers have ongoing expenses for children or business. A person who doesn't have kids will have more funds available to repay than someone making the same amount of money but has children.

Depending on other factors, such as credit score and assets, the actual maximum debt that can be allowed to approve a loan can vary.

The one time debt ratio is not a consideration is with a VA streamline refinance. The VA believes that if you could afford the loan initially, then you can afford it now with a lower interest rate.