Home Affordability Calculator 2026
Enter your income and debts to see how much house you can afford.
Your Finances
You Can Afford Up To
$250,000
Based on the 28/36 DTI rule · 20.0% down
Monthly PITI
$1,664
Front-End DTI
26.6%
Back-End DTI
34.6%
Monthly Payment Breakdown
FHA vs Conventional
| FHA | Conventional | |
|---|---|---|
| Max Home Price | $213,000 | $250,000 |
| Down Payment | $50,000 (3.5%) | $50,000 (5-20%) |
| Monthly Payment | $1,756 | $1,664 |
| PMI/MIP | $92/mo | $0/mo |
DTI Ratio
Disclaimer
- This is an estimate based on the 28/36 DTI rule. Actual lending decisions depend on many factors.
- PMI and MIP rates are estimates; actual rates depend on credit, LTV, and lender.
- Consult a mortgage lender for pre-approval and exact figures.
The 28/36 Rule Explained
Lenders use the 28/36 rule as a guideline for mortgage approval:
- 28% (front-end ratio): Your total housing cost (PITI: principal, interest, taxes, insurance) should not exceed 28% of gross monthly income.
- 36% (back-end ratio): Total debt payments (housing + car + student loans + credit cards) should not exceed 36% of gross monthly income.
Some lenders allow higher ratios — FHA loans can approve up to 43% DTI, and some conventional loans go to 50% for borrowers with strong credit and reserves. But just because you can borrow more doesn't mean you should.
How Much House Can You Afford by Salary?
| Annual Income | Max Home Price (28% rule) | Monthly PITI |
|---|---|---|
| $50,000 | ~$200,000 | ~$1,167 |
| $75,000 | ~$310,000 | ~$1,750 |
| $100,000 | ~$420,000 | ~$2,333 |
| $150,000 | ~$630,000 | ~$3,500 |
*Assumes 20% down, 6.5% rate, 30-year term, 1.2% property tax, $1,800 insurance.
FHA vs Conventional Loans
FHA loans allow as little as 3.5% down with a 580+ credit score, making homeownership more accessible. The trade-off: FHA loans require mortgage insurance premiums (MIP) for the life of the loan, adding 0.55% annually. Conventional loans can drop PMI once you reach 20% equity.
What Is PMI and How to Avoid It
Private Mortgage Insurance (PMI) is required on conventional loans when the down payment is less than 20%. It costs 0.3-1.2% of the loan amount annually. To avoid PMI:
- Put 20% or more down
- Ask about lender-paid PMI (higher rate, no separate premium)
- Use a piggyback loan (80/10/10 structure)
- Request PMI removal once you reach 20% equity
Frequently Asked Questions
How much down payment do I need?
Conventional loans: 3-20%. FHA: 3.5%. VA: 0% (for veterans). While 20% avoids PMI, many first-time buyers put down less. Weigh the cost of PMI vs investing the difference.
How does credit score affect my rate?
A higher credit score means a lower interest rate. The difference between a 660 and a 760 score can be 0.5-1% on your rate — which translates to tens of thousands in interest over 30 years.
What's not included in this calculator?
This provides an estimate based on income, debts, and the 28/36 rule. Actual approval depends on credit history, employment stability, asset reserves, and the specific lender's underwriting criteria.
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