How much house can I afford?

Work backward from your income, monthly debts and down payment to a comfortable home price range, using the same ratios lenders use.

Household income

$/yr

Monthly debt payments

$/mo

Cash for down payment

Interest rate (your assumption)

Comfort level

Taxes and insurance

%/yr

DTI is your total monthly debts, including the new house payment, divided by gross monthly income. Allowed ratios vary by program and by the rest of your file.

Estimated price range

$466,000

Max housing payment: $3,700
Down payment: $40,000
Estimated loan: $425,732

Estimate only, for illustration. Your actual rate, payment and costs depend on your credit, loan program, property and market conditions. Not an offer to lend.

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How this affordability calculator works

Lenders look at your debt-to-income ratio (DTI): all of your monthly debt payments, including the new house payment, divided by your gross monthly income. The calculator starts from the DTI you pick, subtracts the debts you already pay, and treats what is left as your maximum housing payment. It then works backward through the amortization formula, including taxes and insurance, to the price that payment supports with your down payment.

Picking a comfort level

Conservative (36%) leaves room for savings, childcare, travel and surprises.
Standard (43%) is a common qualifying guideline for many loans.
Stretch (50%) is allowed on some programs with strong compensating factors, like reserves or a high score.

Just because you can qualify for a number does not mean you should spend it. We would rather you buy a house you can comfortably keep.

What else changes the answer

Credit score, the loan program, mortgage insurance, HOA dues and the property tax rate all move the real number. Student loans are counted differently from program to program, and some programs, like our doctor and professional loans, treat deferred student loans more flexibly.

Common questions

How much house can I afford on my income?

Most buyers land where the total of all monthly debts, including the new payment, stays between about 36% and 43% of gross monthly income. Some programs allow more. Enter your income, debts and down payment above to see a price range, then get pre-approved to confirm it.

What counts as monthly debt?

Minimum payments on credit cards, car loans, student loans, personal loans, child support and similar obligations that show on your credit report or that you are required to pay. Everyday costs like utilities, phone and groceries are not counted in DTI.

Does the down payment change what I can afford?

Yes. A larger down payment lowers the loan amount, the monthly payment and sometimes mortgage insurance, so the same budget supports a higher price. Down payment assistance can help close the gap for eligible buyers.

Should I borrow the maximum I qualify for?

Usually not. Qualifying numbers are ceilings, not targets. Leave room for maintenance, emergencies and savings. We will show you a comfortable number and a maximum number so you can decide.

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