How Much House Can I Afford in Maryland with a VA Loan?

If you're a veteran or active-duty service member looking to buy a home in Maryland, a VA loan can be one of the most powerful tools in your arsenal. But one of the first questions most buyers ask is: "How much house can I actually afford with my VA loan benefit?" 

Let’s break it down in plain English—no fluff, no lender jargon. 

What Is a VA Loan? 

A VA loan is a mortgage option backed by the U.S. Department of Veterans Affairs. It’s available to veterans, active-duty military, and certain members of the National Guard and Reserves. The biggest benefits include: 

• $0 down payment 

• No private mortgage insurance (PMI) 

• Competitive interest rates 

• Easier credit requirements 

In high-cost areas of Maryland—like Howard, Montgomery, or Anne Arundel County—this can be the difference between buying now and waiting years. 

Step 1: Know Your Budget 

Even though the VA loan allows 100% financing, you still need to qualify based on your income and existing debts. Lenders look at your debt-to-income ratio (DTI), which is the percentage of your gross monthly income that goes toward monthly debt payments. 

Example: 

• Gross Monthly Income: $6,000 

• Monthly Debt Payments (car loan, credit cards, etc.): $1,200 

• DTI: $1,200 / $6,000 = 20% 

Most VA lenders want to see your DTI under 41%, though some go higher with strong compensating factors. 

Step 2: Estimate Your Monthly Mortgage Payment 

Your monthly mortgage payment typically includes: 

• Principal and interest (loan payment) 

• Property taxes (varies by county) 

• Homeowners insurance 

• HOA dues (if applicable) 

Use these numbers to plug into a VA loan calculator. 

Step 3: Consider Additional Costs 

VA loans eliminate PMI, but you’ll still need to plan for: 

• VA Funding Fee (can be rolled into the loan) 

• Closing costs (can often be covered by the seller or lender credit) 

• Initial savings cushion (moving costs, furniture, emergency fund) 

For first-time VA buyers, the funding fee is typically 2.15% of the loan amount (0% for those with service-connected disabilities). 

Step 4: Work with a VA-Savvy Agent 

Not all real estate agents understand VA loans—or how to structure an offer that gets accepted in a competitive Maryland market. At Salvato & Co. Real Estate, we’re a veteran-owned team with firsthand PCS experience and deep roots in the Fort Meade, Andrews AFB, and surrounding areas. 

We’ll help you: 

• Understand your real affordability range 

• Avoid overpriced or underperforming properties 

• Craft winning offers without overbidding 

Let’s Maximize Your VA Loan Benefit 

Don’t guess at what you can afford—get clear answers and real support from people who get it. 

Schedule a Free Consultation or visit our Military Relocation page.