Home Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment.
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
How much house can I afford?
Lenders typically approve mortgages where total housing costs are under 28% of gross income (front-end DTI) and total debt payments under 36% (back-end DTI). This calculator uses these ratios.
What is the 28/36 rule for mortgages?
The 28/36 rule is a lending guideline: housing costs at 28% of gross income maximum, total debt (housing + other debts) at 36% maximum. These are lender thresholds, not personal finance recommendations.
How does my debt affect home affordability?
Existing debts (car loans, student loans, credit cards) reduce what you can borrow for a home. Each $500/month in debt payments reduces home affordability by roughly $100,000.
What down payment do I need?
Conventional loans require 3-5% minimum; 20% avoids PMI. FHA loans accept 3.5% down. VA loans offer 0% down for veterans. Larger down payments mean smaller loans and lower payments.
Does my credit score affect how much house I can afford?
Yes, credit score affects your interest rate. A lower rate means you qualify for a larger loan. A difference of 1% in rate changes affordability by roughly 10% of home price.
What income do I need to buy a $300,000 house?
With 20% down and a $240,000 loan at 7%, you need roughly $65,000-75,000 annual income to meet the 28% rule. This varies based on taxes, insurance, and other debts.
Should I buy less house than I can afford?
Qualifying for a loan amount does not mean that amount is right for your situation. A smaller mortgage provides more financial flexibility, faster payoff, and potentially less financial stress. Consider your other goals and priorities.