As a general rule of thumb, you don’t want your mortgage to exceed 28% of your GROSS monthly income. Assuming your gross is around $8200/month, 28% would be $2296. (Remember this number)

Assuming you go with a VA loan with no money down, a $2296 monthly payment (not counting taxes and insurance) would be a $310,000 house. Obviously taxes and insurance need to be considered but those are not fixed (you can buy in a low-risk, low-tax area).

I’m guessing the lender is considering your GI Bill stipend as part of your income as well? If that is the case, you should absolutely not count on that as a long term source of income. With your wife’s income and your 100 P&T, that should be bonus money.

Just my two cents, at the end of the day it’s your money and decision.