What is a good debt-to-income ratio?

Lenders prefer front-end DTI ≤28% and back-end DTI ≤36%. However, some programs allow up to 43-50% back-end DTI with excellent credit and compensating factors like large down payment or cash reserves.

How much should I put down?

20% is ideal to avoid PMI and get better rates. However, 3-5% down is possible with FHA or conventional loans. Weigh the trade-off between keeping cash for emergencies vs. saving on PMI and interest.

Can I afford more than the calculator says?

The calculator uses conservative 28/36 DTI guidelines. You might qualify for more, but consider: job stability, emergency fund, future expenses (kids, college), and lifestyle. Just because you qualify doesn't mean you should max out.

What debts count towards DTI?

Include: credit cards, auto loans, student loans, personal loans, alimony, child support. Don't include: utilities, insurance, groceries, gas. Include debts even if paying off soon unless paid off before closing.

Housing Calculators

Home Affordability Calculator

Estimate maximum home price based on income, debts, and down payment. Supports FHA, VA, USDA, and conventional loan types with front-end and back-end DTI ratio calculations, qualification status indicators, and payment breakdown charts.

How to Use the Home Affordability Calculator

Use the Home Affordability Calculator to maximum home price based on income, debts, and down payment. Supports FHA, VA, USDA, and conventional loan types with front-end and back-end DTI ratio calculations, qualification status indicators, and payment breakdown charts.. Enter your values to get accurate, instant results tailored to your situation.

Free housing calculators for rent vs buy, home affordability, moving costs, and more. Make your housing decisions wisely.

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Home Buying Guide

Buy within your means

Expert Tips

Follow the 28/36 Rule: Spend no more than 28% of gross income on housing costs and 36% on total debt. This keeps your finances healthy and stress-free.
Budget Beyond the Mortgage: Include property taxes, insurance, HOA fees, maintenance, and utilities in your calculations. These can add significantly to monthly costs.
Save a Larger Down Payment: More down means lower monthly payments, no PMI requirement, and better rates. Aim for at least 20% if possible.
Keep an Emergency Fund: Don't drain your savings for the down payment. Keep 3-6 months of expenses set aside for unexpected home repairs or job loss.

Essential Fundamentals — Affordability basics

What You Can Afford

Income-Based Guidelines: Lenders look at your debt-to-income ratio. Keep total housing costs under 28% of gross monthly income for comfortable affordability.
Total Monthly Costs: Your payment includes principal, interest, taxes, and insurance (PITI). Add HOA fees and PMI if applicable for the true monthly cost.
Down Payment Impact: Larger down payments reduce your loan amount, monthly payment, and total interest paid. They also help you avoid private mortgage insurance.

Advanced Strategies — Smart home buying

Buying Strategies

Get Pre-Approved First: Pre-approval shows sellers you're serious and helps you understand your true budget before house hunting.
Consider Future Expenses: Think about potential life changes: growing family, career moves, or retirement. Buy a home that fits both current and future needs.

Frequently Asked Questions

What is a good debt-to-income ratio?: Lenders prefer front-end DTI ≤28% and back-end DTI ≤36%. However, some programs allow up to 43-50% back-end DTI with excellent credit and compensating factors like large down payment or cash reserves.
How much should I put down?: 20% is ideal to avoid PMI and get better rates. However, 3-5% down is possible with FHA or conventional loans. Weigh the trade-off between keeping cash for emergencies vs. saving on PMI and interest.
Can I afford more than the calculator says?: The calculator uses conservative 28/36 DTI guidelines. You might qualify for more, but consider: job stability, emergency fund, future expenses (kids, college), and lifestyle. Just because you qualify doesn't mean you should max out.
What debts count towards DTI?: Include: credit cards, auto loans, student loans, personal loans, alimony, child support. Don't include: utilities, insurance, groceries, gas. Include debts even if paying off soon unless paid off before closing.