🏠 House Affordability Calculator
Calculate how much house you can afford based on your income, debts, and down payment. Uses the 28/36 rule and DTI ratio analysis for accurate results.
Your Financial Information
$
$
$
%
%
$
$
$
Affordability Results
Enter your information to see results
Detailed Analysis
Loan Type Comparison
| Loan Type | Max DTI | Min Down Payment | Your Status |
|---|
Frequently Asked Questions
The 28/36 rule is a guideline used by lenders to determine how much you can afford to borrow. It states that you should spend no more than 28% of your gross monthly income on housing expenses and no more than 36% on total debt payments.
While 20% is traditional, many loan programs allow lower down payments. FHA loans require as little as 3.5%, and some conventional loans allow 3% down. VA loans may require no down payment for qualified veterans.
Monthly housing costs include principal and interest payments, property taxes, homeowners insurance, HOA fees, and PMI (if applicable). This is often referred to as PITI+HOA.
Private Mortgage Insurance (PMI) is required when you put down less than 20% on a conventional loan. It protects the lender if you default on the loan. PMI can be removed once you reach 20% equity in your home.
Your credit score affects the interest rate you qualify for. Higher scores typically mean lower rates, which increases your buying power. Most conventional loans require a minimum score of 620, while FHA loans may accept scores as low as 580.
DTI includes all recurring monthly debts: credit cards, auto loans, student loans, personal loans, alimony, child support, and the proposed mortgage payment. It does not include utilities, groceries, or other living expenses.
Yes, but student loans will impact your DTI ratio. Consider income-driven repayment plans to lower monthly payments, or pay down other debts to improve your overall debt-to-income ratio.
Pre-qualification is an estimate based on self-reported information. Pre-approval involves a credit check and document verification, providing a more accurate assessment of what you can borrow and shows sellers you're a serious buyer.
Disclaimer
This calculator provides estimates for educational purposes only. Actual loan approval depends on various factors including credit score, employment history, and lender requirements. Please consult with a qualified mortgage professional for personalized advice.