Affordability Calculator
How Much House Can I Afford?
Enter your income, debts, and down payment to see your max home price using standard 28/43 DTI ratios. Then check live wholesale rates for that scenario in the pricer below.
Estimated max home price
$395,000
Assumes a 6.75% rate (use the live pricer below for your actual rate), 1.5% annual property tax + insurance, and standard 28/43 DTI limits. HOA dues, mortgage insurance, and lender-specific overlays will adjust the actual qualifying number.
Now see live rates for your scenario
The calculator uses a 6.75% rate assumption. Set your actual scenario in the pricer below to get the real rate.
Conventional Loan Facts
- Down payment as low as 3% for first-time homebuyers, 5% for others
- Down payment assistance programs available to fully cover the 3% down payment
- Private Mortgage Insurance (PMI) required below 80% LTV - automatically removed at 78%
- Maximum DTI typically 45%, up to 50% with strong compensating factors
- Minimum credit score generally 620; best rates at 740+
- Available for primary residence, second home, or investment property
- No upfront mortgage insurance premium - only monthly PMI if applicable
Frequently Asked Questions
How is "how much house can I afford" calculated?+
Two standard ratios drive it: 28% front-end DTI (housing payment / gross monthly income) and 43% back-end DTI (housing payment + all monthly debts / gross monthly income). The lower of the two caps your maximum monthly payment, which determines your max loan amount, which - plus your down payment - gives max home price.
What counts as "monthly debts"?+
Minimum required payments on credit cards, auto loans, student loans, personal loans, alimony, child support, and other installment debts. Utilities, groceries, subscriptions, and discretionary spending do NOT count.
Does my credit score affect how much house I can afford?+
Indirectly. FICO drives your rate; rate drives your payment; payment drives how much home that payment finances. A higher FICO buys a lower rate, which lets the same monthly payment finance more home.
Should I borrow the maximum I qualify for?+
Usually no. Qualifying is what the lender allows; affording is what your life can absorb. Saving for emergencies, retirement, and lifestyle goals all compete with mortgage payment. A common rule: keep total housing under 25% of take-home pay rather than 28% of gross.
How does down payment affect the math?+
More down = smaller loan amount = lower payment = higher max home price for the same income. It also crosses key LTV thresholds (95, 90, 85, 80) that affect rate and mortgage insurance.
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Same-day pre-approval with a short application. $0 origination, $2,000 guarantee on qualifying loans.
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First-time buyer
5% down rates