🏡 Home Buying Tool
House Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment. Uses lender DTI rules or your own monthly budget.
28/36
Conventional Rule
31/43
FHA Guideline
41%
VA Back-End
Income & Debt Details
DTI-based affordability
Income & Debts
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$
DTI Rule
Loan & Property Details
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Additional Monthly Costs
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Maximum Home Price
$480,000
Conservative: $432,000 — Stretch: $528,000
Affordability Comfort Level
ConservativeModerateStretch
Front-End DTI
26.2%
✓ Within limit
Back-End DTI
32.4%
✓ Within limit
💰 Est. Monthly Housing Costs
🏦 Principal & Interest$2,510
🏛️ Property Tax$480
🛡️ Home Insurance$125
🏘️ HOA Fees$0
🔒 PMI$0
📊 Total Monthly$3,115
Conservative — Comfortably Affordable
Your DTI ratios are within safe lending limits.
📊 Monthly Cost Breakdown
📋 Price Scenarios at Different Down Payments
Down Payment
Max Price
Monthly P&I
PMI?
How Much House Can You Afford?
Our house affordability calculator uses two proven approaches: DTI Mode applies lender guidelines (28/36, FHA 31/43, or VA 41%) to your income and debts, while Budget Mode works backwards from the monthly payment you're comfortable with. Both factor in property tax, insurance, HOA, and PMI to give you a realistic total cost — not just the mortgage. Once you know your budget, calculate the exact payment with our mortgage calculator and see your full payoff schedule with our amortization calculator.
📐 The 28/36 Rule Explained
The most common lender guideline:
Front-end ≤ 28%: Housing costs / Gross monthly income
Back-end ≤ 36%: (Housing + all debts) / Gross monthly income
Example: $10,000/month gross income → max housing $2,800/mo (28%), max all debts $3,600/mo (36%).
🔑 What's Included in "Housing Costs"?
- P&I: Principal and interest — the core mortgage payment
- Property tax: Varies by location (0.3%–2.5% of home value/year)
- Homeowner's insurance: ~$1,000–$2,500/year typically
- HOA fees: $0–$1,000+/month depending on community
- PMI: Required if down payment < 20% (~0.5–1.5%/year)
💰 How Down Payment Affects Affordability
- 3–5%: FHA minimum, but PMI adds significant monthly cost
- 10%: Lower PMI, better loan-to-value ratio
- 20%: Eliminates PMI — saves $150–$300+/month on a $300K loan
- 20%+ also: Often unlocks better interest rates from lenders
Use our scenarios table above to compare different down payment options.
⚠️ Common Affordability Mistakes
- Buying at the maximum approved amount — leaves no financial cushion
- Ignoring closing costs (2–5% of purchase price)
- Forgetting maintenance costs (budget 1–2% of home value/year)
- Not accounting for utilities, commuting, and lifestyle costs
- Using optimistic income projections instead of current verified income
Frequently Asked Questions
On a $100,000 salary with minimal debts, the 28/36 rule suggests a maximum monthly housing cost of about $2,333 (28% of $8,333 gross monthly income). At current rates (~6.8%), with a 20% down payment, this translates to a home price of approximately $350,000–$380,000. With debts or a smaller down payment, the affordable price decreases. Use our affordability calculator above for your exact situation.
DTI (Debt-to-Income ratio) is the percentage of your gross monthly income that goes toward debt payments. Lenders use it to assess whether you can comfortably handle a mortgage. The front-end DTI covers housing costs only; the back-end DTI covers all monthly debts. Conventional lenders typically want front-end below 28% and back-end below 36%. Exceeding these limits doesn't always mean rejection — compensating factors like excellent credit or large reserves can help.
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price on a conventional loan. PMI typically costs 0.5%–1.5% of the loan amount per year — on a $300,000 loan, that's $125–$375 per month. PMI is automatically removed once you reach 20% equity (by the Homeowners Protection Act). Putting 20% down eliminates PMI entirely and can save you tens of thousands over the life of the loan.
DTI mode calculates affordability based on lender rules — it uses your income and existing debts to find the maximum mortgage payment lenders would approve. Budget mode starts with the monthly payment you're comfortable with regardless of what lenders might approve. Budget mode is often more conservative and realistic for buyers who don't want to stretch to their maximum approved limit. Many buyers find Budget mode gives a better picture of actual comfort level.
Property taxes and HOA fees are included in the total monthly housing cost used for DTI calculations — exactly as lenders do it. Property tax rates vary widely by location (0.3% in Hawaii to 2.5%+ in New Jersey). Enter your local rate for accurate results. HOA fees range from $0 to $1,000+/month. These costs significantly affect affordability: a $500/month HOA on a home with $7,000/year taxes can reduce your affordable price by $80,000–$100,000 compared to a similar home without these costs.