Home Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment.
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How Home Affordability Is Calculated
Lenders use two debt-to-income ratios to determine how much you can borrow. The front-end DTI limits how much of your gross monthly income can go toward housing costs (mortgage payment, property tax, and insurance). The back-end DTI limits total monthly debt payments including housing plus all other obligations.
Back-End DTI = (Housing + All Debts) / Gross Monthly Income
Your maximum home price is whichever constraint is more limiting — front-end or back-end. This calculator checks both and tells you which one caps your purchase price.
DTI Guidelines by Loan Type
The 28/36 rule is the traditional conservative guideline: no more than 28% of gross income on housing, no more than 36% on all debts. FHA loans allow up to 31% front-end and 43% back-end, making them accessible to buyers with more debt. Conventional loans often allow up to 45% back-end DTI with strong credit and compensating factors. Some lenders go higher with automated underwriting approval.
A lower DTI gives you more negotiating power, better rates, and faster approvals. Many financial advisors recommend staying closer to the 28/36 rule even when you technically qualify for more.
What This Calculator Does Not Include
Affordability depends on more than DTI. Your credit score, employment history, loan type, and assets all affect what lenders will approve. HOA fees, PMI (if your down payment is under 20%), and maintenance costs are not included in this estimate. Use this as a starting range, then get pre-approved by a lender for a precise number.