One of the most important—and exciting—questions you’ll ask on your VA homebuying journey is: how much home can I afford? While the VA loan offers flexible, veteran-friendly terms, knowing your financial boundaries helps ensure a smooth process and a confident purchase.

In this post, we’ll help you understand how affordability is calculated, what makes South Florida unique, and how your VA loan benefits shape your buying power.

Understanding VA Loan Affordability

Affordability isn’t just about how much the bank will lend—it’s about how much you can comfortably afford without stretching your budget. VA lenders look at two main factors:

• Debt-to-Income Ratio (DTI): This compares your total monthly debt payments to your gross monthly income. Most VA lenders look for a DTI under 41%, though exceptions exist with strong credit or residual income.

• Residual Income: This is a VA-specific guideline that looks at how much money you have left after paying major expenses like mortgage, taxes, and debts. It ensures you have enough left for daily living.

Why South Florida Prices Matter

In markets like Miami-Dade, Broward, and Palm Beach Counties, home prices tend to be higher than the national average. According to recent data, the median price for a single-family home in South Florida is over $600,000.

This means most buyers will rely on their bonus entitlement to secure a home without a down payment. A strong pre-approval and full understanding of your limits will help you move quickly in a competitive market.

What You Can Afford at Different Income Levels (2025 Estimates)

Let’s look at a few simplified examples for a veteran buyer with no major debts, assuming full entitlement and a 6.5% interest rate:

• $60,000/year income = approx. $250,000–$280,000 home

• $80,000/year income = approx. $325,000–$360,000 home

• $100,000/year income = approx. $425,000–$460,000 home

• $120,000/year income = approx. $500,000–$550,000 home

Actual affordability may vary depending on property taxes, HOA fees, insurance, and whether you're exempt from the VA funding fee.

Tips for Maximizing Affordability

• Pay down debt to lower your DTI

• Maintain stable income and employment

• Work with a VA-savvy lender to understand regional costs

• Factor in extra expenses like insurance and taxes early

Tools to Help

Ask your lender for a custom affordability analysis that factors in:

• Local tax rates and insurance estimates

• Your current and future monthly obligations

• Any exemptions or benefits you’re eligible for

There are also online VA loan calculators that can give you a ballpark idea—but nothing replaces a full review with a qualified professional.

Final Thoughts

Knowing how much home you can afford is key to staying empowered and focused during your search. South Florida’s competitive market makes preparation essential, but with your VA loan benefits, the right guidance, and a smart plan, your dream home is within reach.

As your South Florida Regional Director and part of the Compass Military Division, I’m here to help veterans and military families make financially confident decisions. Our mission is to turn your service into lasting stability—and homeownership is the first step.

I’m Celia Ruiz, and it’s an honor to walk this journey with you.

Stay tuned for our next post: "VA Credit Guidelines Made Simple.”