Tools · Run the numbers
What can I afford?
Work back from your income and a max debt-to-income ratio to an estimated home price.
A quick estimate of the home price your income can support, working back from a maximum debt-to-income ratio. Lenders weigh more than this — but it's the right ballpark to start.
Your household's total income before taxes and deductions — salary, hourly wages, verifiable bonus or overtime, self-employment net income, and other documented income.
The minimum monthly payments on your credit obligations: credit cards, car loans or leases, student loans, personal loans, child support or alimony, and any other mortgages. Don't include utilities, groceries, phone, insurance, or subscriptions — lenders don't count those in DTI.
45% is a typical practical ceiling — automated underwriting (Fannie/Freddie) can approve up to 50% on strong files with compensating factors like cash reserves and higher credit scores.
Actual PMI typically runs 0.2–1.5% a year depending on credit score and down payment; enter your quoted amount if you have one (a quick placeholder: 0.5%/yr of the loan ÷ 12). Leave 0 if putting 20% or more down.
Estimated max home price
$423,661
at $2,875/mo total housing — principal, interest, taxes, insurance & mortgage insurance
At a conservative 36% DTI (the classic 28/36 guideline): $316,869
These numbers move. Every lender layers its own guidelines on top of these program rules, so the same finances can qualify for different amounts at different lenders. And a good loan officer can often raise your number — paying off or paying down the right debt, excluding debts that qualify (like installment loans with ten or fewer payments left, or debts someone else has documentably paid for a year), or making sure every dollar of income is counted. Worth a conversation before you assume a ceiling.
This assumes $0 PMI, but with under 20% down a conventional loan usually requires PMI — add an estimate above (commonly $30–70/mo per $100k borrowed) for a realistic number.
Estimates only — not a quote, pre-approval, or offer of credit. Your actual terms come from a lender's Loan Estimate. What you qualify for depends on full underwriting and lender limits that are often stricter than program ceilings — and the most you can borrow is not a recommendation to borrow it.
Terms on this page
- Debt-to-income ratio (DTI)Your monthly debt payments divided by gross monthly income; lenders use it to judge what you can afford.
- Down paymentThe cash you put toward the purchase up front; the rest is the loan.
- Conventional loanA loan not backed by a government program (FHA/VA/USDA); usually needs decent credit and 3%+ down.
- FHA loanA government-backed loan with lower down-payment and credit requirements, in exchange for mortgage insurance.
- VA loanA government-backed loan for eligible veterans and service members, often no down payment and no monthly mortgage insurance.
- USDA loanA government-backed loan for eligible rural/suburban buyers, often no down payment.
- Private mortgage insurance (PMI)Insurance on a conventional loan when you put less than 20% down; cancellable as you build equity.
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