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Home Affordability Calculator
See how much house you can comfortably afford based on your income, debts, and local costs. Free, interactive, no login required.
Your Finances
Loan Details
Property Costs
Reverse: What Income Do I Need?
Required Gross Annual Income
$131,229
Based on 28% front-end DTI rule
Your Affordability
Comfortable Budget (28% DTI)
$264,978
$1,983/mo · 28% of income
Maximum Stretch (36% DTI)
$273,326
$2,050/mo · 36% of income
Debt-to-Income Breakdown
28%
7%
Housing Other Debt35% total DTI
Monthly Payment Breakdown (Comfortable)
- Principal & Interest
- $1,459
- Property Tax
- $243
- Homeowners Insurance
- $150
- PMI / MIP
- $131
- HOA
- $0
- Total Payment
- $1,983/mo
The 28/36 Rule Explained
The 28/36 rule is the most widely used guideline for determining how much house you can afford. It has two parts:
- 28% front-end ratio: Your total monthly housing payment (principal, interest, taxes, insurance, PMI, and HOA) should not exceed 28% of your gross monthly income. This is what we call the "comfortable" budget.
- 36% back-end ratio: Your total monthly debt payments — housing plus all other obligations (car loans, student loans, credit card minimums) — should not exceed 36% of your gross monthly income. This is the "maximum stretch" budget.
Lenders may approve you for more, but exceeding these thresholds increases your risk of financial stress. This calculator shows both numbers so you can make an informed decision.
FHA vs Conventional vs VA
The loan type you choose affects your required down payment and mortgage insurance:
- Conventional: Requires PMI (private mortgage insurance) when your down payment is less than 20% of the home price. PMI typically costs 0.5–1% of the loan amount per year and can be removed once you reach 20% equity.
- FHA: Backed by the Federal Housing Administration. Requires a smaller down payment (as low as 3.5%), but charges an upfront mortgage insurance premium (UFMIP) plus an annual MIP of about 0.55% that lasts the life of the loan in most cases — even after you reach 20% equity.
- VA: Available to eligible veterans and active-duty service members. No down payment required and no monthly mortgage insurance, though there is a one-time VA funding fee. This calculator sets PMI to $0 for VA loans.
How to Improve Your Affordability
- Increase your down payment: A larger down payment reduces your loan amount and monthly payment, and can eliminate PMI on conventional loans.
- Pay down existing debts: Reducing your monthly debt obligations directly improves your back-end DTI and increases the maximum price you qualify for.
- Improve your credit score: A higher credit score qualifies you for lower interest rates, which increases your purchasing power significantly over a 30-year term.
- Consider a longer loan term: A 30-year mortgage has lower monthly payments than a 15-year, allowing you to afford a higher-priced home (though you'll pay more interest over the life of the loan).
- Shop for lower property tax areas: Property tax rates vary widely by location and can add hundreds to your monthly payment.
Sources & Methodology
- 28/36 qualifying rule — CFPB: Debt-to-Income Ratio
- FHA annual MIP rates — HUD: FHA Mortgage Insurance Premiums
- VA loan eligibility and funding fee — VA Home Loans
- Conventional PMI ranges — Investopedia: Private Mortgage Insurance (PMI)
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