Home Affordability Calculator
Find out how much house you can afford based on your income and debts
Your Income
Monthly Debts
Include minimum payments only (not rent - that goes away)
Total Monthly Debts: $400
Loan Parameters
Moderate - common for qualified buyers
You Can Afford
Based on 36% debt-to-income ratio
Down Payment
$73,092
Loan Amount
$292,369
Estimated Monthly Payment
DTI Analysis
Front-End DTI
28.0%
Housing only
Back-End DTI
32.8%
Housing + debts
Most lenders prefer front-end DTI under 28% and back-end DTI under 36%. FHA allows up to 43% back-end (or higher with compensating factors).
Affordability Scenarios
Conservative (28% DTI)
Best for financial flexibility
$302,811
Moderate (36% DTI)
Balanced approach
$407,229
Aggressive (43% DTI)
Maximum buying power
$498,594
Understanding Affordability
Knowing how much home you can afford is the first step in the homebuying process. Lenders look at your debt-to-income (DTI) ratio to determine your borrowing capacity.
DTI Explained:
- Front-End DTI: Your housing payment divided by gross monthly income. Most lenders prefer 28% or less.
- Back-End DTI: Total monthly debt payments divided by gross monthly income. Conventional loans typically max at 36-43%.
Tips to Increase Affordability:
- Pay down existing debt before applying
- Increase your down payment to avoid PMI
- Consider a longer loan term for lower payments
- Shop for the best interest rate
- Look at areas with lower property taxes
Other Costs to Consider:
- Closing costs (2-5% of purchase price)
- Moving expenses
- Furniture and appliances
- Emergency fund (3-6 months of expenses)
- Maintenance (1% of home value annually)
Ready for Real Numbers?
Get pre-approved to know exactly what you can borrow.