Question 1

How much house can I afford?

Accepted Answer

Lenders typically use front-end and back-end debt-to-income (DTI) limits to determine affordability. This calculator estimates your maximum home price based on income, monthly debts, down payment, and estimated housing costs.

Question 2

What DTI ratio do mortgage lenders use?

Accepted Answer

Many lenders prefer a housing ratio around 28% and a total DTI around 36%, though FHA and other programs may allow higher limits. Your results show how your numbers compare to common guidelines.

Question 3

What counts as monthly debt for affordability?

Accepted Answer

Include minimum payments on car loans, student loans, credit cards, personal loans, and other recurring obligations. Do not include current rent unless it will continue after you buy.

Question 4

Does a larger down payment increase affordability?

Accepted Answer

A larger down payment reduces your loan amount and monthly payment, which can increase the home price you qualify for. It may also help you avoid PMI on conventional loans.

Question 5

Is this the same as a mortgage pre-approval?

Accepted Answer

No. This is an educational estimate only. A lender pre-approval involves verifying income, credit, assets, and employment. Use these results as a starting point before talking to a loan officer.

Home Affordability Calculator

Affordability range

Frequently asked questions