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BAH buying power calculator
Your housing allowance is already a monthly housing budget. This turns it into a purchase price.
Built by Sean Goudreau, Mortgage Loan Officer · NMLS #326155 · Rate
Use the figure from your LES. If you are relocating, look up the rate for your new duty station with the DoD BAH calculator.
Monthly. Leave at zero to see what BAH alone covers.
Annual. National average shown.
Annual. National average shown.
A VA disability rating of 10% or higher, a Purple Heart while on active duty, or an eligible surviving spouse.
Funding fee $6,860
Monthly payment $2,400
Important information about this calculator
The calculator on this page is provided for illustrative and educational purposes only. All examples are hypothetical and are for illustrative purposes only. This information is not intended to be an offer or a solicitation of an offer for a loan.
The calculations made by this tool are based on the information you input and on the assumption that the interest rate does not change during the loan term. Results may vary based on lender guidelines, market conditions, and individual financial circumstances.
Actual loan terms, payment amounts, and interest rates will be determined based on your credit history, income, assets, property value, and other factors. Monthly payment examples do not include amounts for taxes and insurance premiums, and actual payment obligations may be greater.
VA loans require a VA funding fee which varies based on down payment percentage, whether you've used your VA loan benefit before, and your military category. Veterans with service-connected disabilities may be exempt from the funding fee.
Why BAH and a VA loan fit together
BAH is paid to cover housing. Most service members hand it to a landlord, which means the allowance builds someone else's equity for the length of a tour.
A VA loan is the only common mortgage that lets you redirect it without needing cash first. No down payment and no mortgage insurance means the barrier between renting and buying is not savings, it is whether the payment fits. If your allowance covers the payment, you are already qualified on the part most people get stuck on.
There is a second advantage that this calculator does not show. BAH is untaxed, and lenders gross it up when qualifying you, typically by around 25%. That means the income a lender counts is higher than the number on your LES, which raises what you can actually be approved for beyond what your allowance alone would suggest.
Worth being clear about the difference: this tool estimates what a payment supports. A lender determines what you qualify for, and grossed-up BAH usually makes that number larger.
What this calculator assumes
No down payment, which is how most VA purchases work with full entitlement. Putting money down raises the price this supports and lowers the funding fee tier.
The funding fee financed into the loan rather than paid at closing, which is what most borrowers do.
No mortgage insurance, because VA loans do not carry any.
No HOA dues. If the property has them, subtract that amount from your monthly figure before running this.
Taxes and insurance at national averages unless you change them. Both vary enormously by county, and in high-tax markets the default will overstate what you can buy by a meaningful amount.
Frequently Asked Questions
Can BAH be used to qualify for a mortgage?
Yes. Lenders count BAH as qualifying income for active duty service members. Because it is untaxed, most lenders gross it up, typically by around 25%, which raises the income figure used in your debt-to-income calculation.
What happens to my mortgage if I get orders?
The house does not have to be sold. Many service members rent out the property, and the VA benefit is built for this: you can restore entitlement after a sale, or use remaining entitlement to buy at the next duty station while keeping the first home.
Does BAH change if I buy instead of rent?
No. BAH is based on your duty station, paygrade and dependent status, not on whether you rent or own. Buying does not reduce the allowance.
Should I spend all of my BAH on a mortgage?
Usually not. A payment that consumes the entire allowance leaves nothing for maintenance, which owners pay and renters do not. Running this at your full BAH shows a ceiling rather than a target.
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Sean Goudreau
Mortgage Loan Officer
NMLS #326155
Rate
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Waltham, MA 02452
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