Home Affordability Calculator

How much house can you actually afford?

Home affordability comes down to debt-to-income (DTI) ratios, not just the sticker price. The 28/36 rule is the starting point: lenders generally want your housing payment under 28% of gross monthly income (the front-end ratio) and all of your debt payments — housing plus car loans, student loans, and credit card minimums — under 36% (the back-end ratio). This calculator applies those limits, subtracts property tax, insurance, HOA, and mortgage insurance, and back-solves the largest home price that still fits your budget.

Loan type changes the math. Conventional loans use the 28/36 rule and add PMI when you put down less than 20%, which drops off once you reach 20% equity. FHA loans allow higher ratios (31/43) and a smaller 3.5% down payment but include an upfront and an annual mortgage insurance premium (MIP). VA loans, for eligible veterans, require no down payment and no monthly mortgage insurance — using a one-time funding fee and a 41% back-end guideline instead. Switch between them to watch your buying power shift.

Two levers move the number the most: your down payment and your existing debts. A larger down payment shrinks the loan and can eliminate PMI, raising the price you can carry. Monthly debt payments come straight off your back-end budget, so paying off a car loan or credit card can add tens of thousands to your price ceiling. The calculator also tells you which limit is binding — front-end, back-end, or the minimum down payment — so you know exactly what to change. Treat the result as a planning estimate; a lender also weighs your credit score, employment, cash reserves, and the specific loan program.