Free Tools
Affordability Calculator
Find out how much home you can afford based on your income, monthly debts, and down payment — before you start shopping.
Your Financial Profile
You May Afford Up To
$412,000
Based on 43% DTI limit
Max Loan Amount
$352,000
Est. Monthly Payment
$2,343
P&I + est. taxes & insurance
Max Monthly Housing Budget
$3,083
Based on income & existing debts
Payment as % of max housing budget
This calculator provides estimates for educational purposes only. Results are not a Loan Estimate, pre-approval, or commitment to lend, and may not reflect taxes, insurance, HOA dues, or other costs. Contact a loan officer for an accurate quote.
Buying Power Explained
What Determines How Much You Can Borrow
Lenders look at more than just your income. Here's what goes into your affordability calculation.
Debt-to-Income (DTI)
Lenders compare your total monthly debts (including the new mortgage) to your gross monthly income. Keeping DTI at or below 43% gives you the best loan options across most programs.
Max Home Price
The largest home price you can afford based on your income, debts, down payment, rate, and the 43% DTI cap. Actual approval depends on credit score, employment history, and other lender requirements.
Credit Score Matters
Your credit score significantly affects the rate you qualify for. A 760+ score typically unlocks the best rates. Below 620, many programs become unavailable. We can help you find the right loan for your credit profile.
Down Payment Programs
Down payment assistance programs can reduce the cash you need upfront. State and local grants, second-lien programs, and gift funds can all help — especially for first-time buyers.
Income Stability
Lenders want to see 2 years of steady income history. W-2 employees have the simplest path. Self-employed borrowers may use bank statement loans or other alternative documentation programs.
Pre-Approval Power
A pre-approval letter from a lender shows sellers you're a serious buyer and helps you shop confidently within your actual budget. It typically takes 1–2 business days to obtain.
Affordability FAQ
Common Questions About Home Affordability
How does the affordability calculator work?
The calculator uses the 43% back-end Debt-to-Income (DTI) ratio standard used by most lenders. It subtracts your existing monthly debts from your maximum allowable housing payment, then back-calculates the largest loan (and home price) you can support at the given rate and term.
What is the 43% DTI rule?
DTI (Debt-to-Income ratio) is your total monthly debt payments divided by your gross monthly income. Most conventional lenders cap back-end DTI at 43%. Some programs (FHA, VA) may allow higher ratios. The front-end ratio (housing costs only) is often capped at 28%–31%.
What counts as monthly debt?
Include minimum monthly payments on car loans, student loans, credit cards, personal loans, and any other recurring debt obligations. Do not include utilities, food, subscriptions, or other living expenses — those aren't included in DTI calculations.
Does the result include taxes and insurance?
Yes. The estimated monthly payment includes principal & interest, estimated property taxes (at the national average rate of 1.1% of home value), and estimated homeowners insurance ($1,400/year). These are estimates — actual amounts vary by location.
How much down payment do I need?
Conventional loans require as little as 3% down. FHA loans require 3.5% minimum. VA and USDA loans offer $0 down for eligible borrowers. A larger down payment reduces your loan amount, lowers your payment, and can eliminate PMI if you put down 20% or more.
Know Your Real Budget Before You Shop
Get a pre-approval letter in as little as one business day. No hard pull until you're ready.