If you’ve ever tried to figure out “How much mortgage can I actually afford?” you’ve probably seen every rule of thumb out there:

• “Spend no more than 28% of your income.”
• “Cap your DTI at 45%.”
• “Your mortgage payment should be 2.5x your annual salary.”

Those rules don’t work for everyone — and they especially don’t work for military families, VA loan buyers, or people PCSing to Hawai‘i.

As a mortgage broker who has helped hundreds of service members, veterans, and Hawai‘i families, I can tell you this:

Affordability is personal. And it’s different in Hawai‘i.

This guide will walk you through the smartest, most realistic way to determine your actual, comfortable mortgage affordability — not just the textbook version.

What Makes My Perspective Different?

After working with hundreds of clients over the years — from E-3s to O-6s, from first-time buyers to seasoned investors — I’ve seen every affordability scenario you can imagine.

And here’s the truth:

Most people underestimate what they can afford.
Most calculators fail to factor in Hawai‘i.
And VA buyers have advantages no other loan program offers.

My experience across diverse real-world situations allows me to give clients clearer, more confident guidance than they typically get from big mainland lenders, online calculators, or bankers who don’t specialize in VA loans.

Why Hawai‘i Is Different: Your Buying Power Is Usually Higher Here

When buyers PCS to Hawai‘i, they often assume home prices will crush their budget. But this is what surprises them:

1. Your BAH is significantly higher in Hawai‘i
   For many ranks, BAH increases by thousands per month compared to most mainland duty stations.
2. You receive COLA
   Cost-of-Living Allowance is tax-free income that boosts your affordability — but most loan officers on the mainland forget to consider it.
3. VA loans allow higher DTIs than conventional loans
   Conventional loans typically cap out around a 50% DTI, while VA loans can often approve 60–65% DTI with strong residual income.

That’s a massive difference.

Result?

Many military families actually qualify for more housing in Hawai‘i than they did on the mainland — even though home prices are higher.

Real Case Study: “We Thought We Could Only Afford $500,000…”

A client PCSed from a mainland base, expecting their budget to stay the same. They were approved for around $500,000 at their previous station, so they assumed that was their limit in Hawai‘i.

But once we recalculated:

• Their BAH increased by thousands per month
• They added COLA to their qualifying income
• VA allowed a higher DTI, thanks to high residual income

Their new max affordability wasn’t $500,000.

It was well into the $700k+ range.

This is why Hawai’i’s affordability can’t be calculated the same way as the mainland.

The Real Question Isn’t “How Much Can I Afford?

It’s “How Much Do I Want to Afford?”

Here’s something I tell every client:

“The lender number isn’t the most important number — your comfort number is.”

Just because you can afford a certain mortgage doesn’t mean you should.

So instead of starting with DTI or max approval, I start with a simpler question:

“What monthly payment feels right for you?”

Some clients want to stay within BAH.
Others are happy to go slightly above to get a better location, larger home, or a place that will work as a long-term rental after they PCS out.

Everyone’s comfort level is different — and it should be.

This approach dramatically reduces financial stress and keeps buyers firmly in the driver’s seat.

VA Loan Advantages That Increase Affordability

VA loans give military buyers unique strengths that directly impact affordability:

No down payment required

Saves cash and increases purchasing power.

Lower interest rates than conventional

More home for the same payment.

Higher allowable DTI

Often up to 60–65% depending on residual income.

No mortgage insurance (PMI)

Lowers monthly payment significantly.

Ability to use BAH + COLA

Powerful for Hawai‘i buyers.

When you combine these, VA buyers often qualify for more than they ever expected.

Factors That Actually Determine What You Can Afford

Let’s break down the practical components of affordability — not the generic ones.

1. Your Monthly Payment Target (Most Important)

This includes:

• Principal + interest
• Property taxes
• Homeowners insurance
• HOA fees (common in Hawai‘i condominiums)
• Utilities and lifestyle costs

Your personal comfort level takes priority over any lender formula.

2. Your DTI (Debt-to-Income Ratio)

For VA loans, this can go much higher due to:

• residual income
• tax-free allowances
• low default rates on VA loans

This gives VA buyers far more breathing room.

3. Your Duty Station’s BAH

This is often the biggest affordability booster when PCSing to Hawai‘i.

4. COLA (Cost-of-Living Allowance)

Tax-free income most mainland lenders forget to count — but it matters.

5. Hawai‘i Insurance + HOA Considerations

A few things to know:

• Hurricane insurance is required for most homes
• Flood zone insurance varies
• HOA fees can range widely

But these are predictable and easy to build into a personalized affordability plan.

How Technology + AI Increase Your Buying Power

Mortgage brokers who rely on modern tech — like I do — have major advantages:

Faster rate shopping

We instantly compare wholesale VA rates across lenders.

Lower pricing

Mortgage brokers are often cheaper than retail lenders.
And VA-specialized brokers (like me) can often beat even other brokers.

Less overhead = better rates

Tech-efficient lenders pass savings directly to you.

Smart tools for affordability planning

From instant fee comparisons to real-time rate models, AI helps clients make clearer decisions with less stress.

Ways to Stretch Your Affordability Even Further

If a client is right on the edge of their comfort zone, we have strategies:

1. Temporary Buydowns (1-0, 2-1, 3-2-1)

Lower your rate for the first 1–3 years.

2. Lender Credits

Reduce closing costs (in exchange for a slightly higher rate).

3. Creative Loan Structuring

Optimizing DTI and residual income to maximize VA approval power.

4. Use BAH Strategically

Some clients cover mortgage with BAH and preserve cash for other goals.

So… How Much Can You Afford?

If you’re military, PCSing to Hawai‘i, or using your VA loan, the “you can only afford X” calculators online are usually wrong — sometimes by a lot.

The best way to determine your real affordability is a quick, personalized breakdown based on:

• your BAH
• your COLA
• your monthly comfort target
• your debts
• your timeline
• your long-term PCS plan

It takes about 10 minutes, and it gives you an accurate, stress-free number you can trust.

Final Thoughts

Mortgage affordability shouldn’t feel overwhelming — and it shouldn’t be based on rigid formulas that don’t apply to military families or Hawai‘i buyers.

With the combination of:

• higher BAH
• COLA
• VA loan advantages
• personalized comfort-based planning
• technology-driven rate comparisons

You’re likely able to afford more home than you think — and with less stress.

If you want a personalized affordability check or just want to talk through your situation, I’m here to help.

Eli — The VA Loan Guy
Military-friendly. Hawai‘i-based. Technology-powered.
And here to make sure you buy a home you can truly afford — comfortably.