House Affordability Calculator
Determine how much house you can afford based on your income, debts, and loan requirements using industry-standard DTI ratios.
Financial Information
Affordability Results
You can afford: $339,036
Based on 28/36 DTI rules with 20% down payment
Loan Amount
$271,229
Down Payment
$67,807
Monthly Housing Costs
DTI Ratios
Closing Costs
Monthly Housing Costs Breakdown
Monthly Income Allocation
What is House Affordability Calculator?
Understanding Home Affordability
Determining how much house you can afford is one of the most important financial decisions you'll make. This calculator uses industry-standard debt-to-income (DTI) ratios to help you understand what lenders will approve and what fits your budget.
Key Factors in Home Affordability
Income
Your gross monthly income is the foundation for affordability calculations. Include salary, bonuses, and other reliable income sources.
Existing Debts
Monthly payments for car loans, student loans, credit cards, and other debts reduce how much you can spend on housing.
Down Payment
A larger down payment increases your buying power and may eliminate private mortgage insurance (PMI) requirements.
Interest Rates
Higher interest rates reduce affordability by increasing monthly payments. Shop around for the best rates.
DTI Rules by Loan Type
| Loan Type | Front-End DTI | Back-End DTI | Benefits |
|---|---|---|---|
| Conventional | 28% | 36% | Best rates, flexible terms |
| FHA | 31% | 43% | Lower down payment (3.5%) |
| VA | No limit | 41% | No down payment, no PMI |
Hidden Costs of Homeownership
Beyond your mortgage payment, budget for these ongoing costs:
- Property Taxes: Vary by location, typically 0.5-2.5% of home value annually
- Homeowners Insurance: Usually 0.3-1.5% of home value per year
- PMI: Required if down payment is less than 20%, typically 0.5-1% annually
- HOA Fees: Monthly or annual fees for community maintenance and amenities
- Maintenance: Budget 1-3% of home value annually for repairs and upkeep
- Utilities: Electric, gas, water, sewer, trash, and internet services
Tips for Increasing Affordability
Before House Hunting
- Improve your credit score for better rates
- Pay down existing debts to lower DTI
- Save for a larger down payment
- Get pre-approved to understand your budget
- Shop around with multiple lenders
Alternative Strategies
- Consider different neighborhoods or home types
- Look into first-time buyer programs
- Explore different loan types (FHA, VA, USDA)
- Consider a longer loan term for lower payments
- Buy with a co-borrower to combine incomes