Home Affordability Calculator
Calculate exactly how much house you can afford based on your income, debts, and expenses. Get instant, accurate estimates and expert guidance.
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Calculate Your Home Affordability
Enter your financial information below to get an accurate estimate of how much house you can afford. Our calculator uses current mortgage rates and lending guidelines.
Enter Your Financial Information
Provide your financial details to calculate affordability
Quick Tips
Income Sources:
- • Salary and wages
- • Bonuses and commissions
- • Rental income
- • Investment dividends
Monthly Debts Include:
- • Credit card payments
- • Car loans
- • Student loans
- • Personal loans
Your Affordability Results
DTI Breakdown
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Download your affordability calculation for future reference
Important Note
This calculator provides estimates based on general guidelines. Actual loan approval and terms depend on your credit score, employment history, and other factors. Get pre-qualified for accurate results.
Understanding Home Affordability
Learn the key factors that determine how much home you can afford and get expert tips for home buying success.
Key Factors in Home Affordability
Income & Employment
Lenders typically use your gross monthly income to determine affordability. Stable employment history and consistent income are crucial factors.
- Gross monthly income (before taxes)
- Employment history (2+ years preferred)
- Income stability and growth potential
Debt-to-Income Ratio
Your DTI ratio compares your monthly debt payments to your monthly income. Most lenders prefer a DTI of 43% or lower.
Credit Score & Down Payment
Your credit score affects your interest rate, while your down payment impacts your loan amount and monthly payment.
- Higher credit scores = better interest rates
- Larger down payments reduce monthly payments
- 20% down eliminates PMI on conventional loans
Expert Tips for Home Affordability
💡 Start Early
Begin planning 6-12 months before you want to buy. This gives you time to improve your credit, save for a down payment, and get pre-qualified.
⚠️ Don't Forget Additional Costs
Your monthly housing payment includes more than just principal and interest:
- • Property taxes
- • Homeowner's insurance
- • Private mortgage insurance (PMI)
- • HOA fees (if applicable)
- • Maintenance and repairs
🎯 Get Pre-Qualified
Pre-qualification gives you a realistic budget and shows sellers you're serious. It also helps you understand what loan programs you qualify for.
📊 Use the 28/36 Rule
Keep your housing payment under 28% of gross income and total debt payments under 36%. This ensures you can comfortably afford your mortgage.
Frequently Asked Questions
Get answers to common questions about home affordability and mortgage calculations.
What is a good debt-to-income ratio for buying a home?
Most lenders prefer a DTI ratio of 43% or lower. This means your total monthly debt payments (including your new mortgage) should not exceed 43% of your gross monthly income. Some programs may allow higher ratios with compensating factors.
How much down payment do I need to buy a home?
Down payment requirements vary by loan type: Conventional loans require 3-20% down, FHA loans require 3.5-10% down, and VA/USDA loans require 0% down. A larger down payment reduces your monthly payment and may eliminate PMI.
What credit score do I need to buy a home?
Minimum credit scores vary by loan type: FHA loans accept scores as low as 500 (with 10% down), conventional loans typically require 620+, and the best rates are available with 740+ scores. Higher scores mean better rates and terms.
Should I include closing costs in my affordability calculation?
Yes, closing costs typically range from 2-5% of the home's purchase price. On a $300,000 home, expect $6,000-$15,000 in closing costs. Some programs allow sellers or lenders to help cover these costs.
How do property taxes and insurance affect my monthly payment?
Property taxes and homeowner's insurance are typically included in your monthly mortgage payment and held in escrow. These costs vary by location and property value, so it's important to factor them into your affordability calculation.
Can I afford more house if I get a higher-paying job?
Yes, but lenders typically want to see 2+ years of employment history in the same field. If you're changing careers or just started a new job, you may need to wait or provide additional documentation to qualify for the higher income.
Ready to Get Pre-Qualified?
Now that you know how much house you can afford, take the next step with our mortgage experts. Get pre-qualified and start your home buying journey today.
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Trusted by 2,000+ homebuyers • Licensed in all 50 states • Equal Housing Lender • NMLS ID: 123456