Find out exactly how much home you can afford using lender DTI guidelines — conventional, FHA, and VA.
30yr fixed avg Mar 2026: ~6.6–7.0%
National avg ~1.0–1.5% · varies by state
📐 How This Calculator Works — 2025 Lender Guidelines
Front-End DTI
Housing costs (P&I + tax + insurance + HOA + PMI) vs gross monthly income. Conventional: 28% · FHA: 31% · VA: no limit
Back-End DTI
All debts + housing vs income. Conventional: 43–50% (Fannie/Freddie automated underwriting can approve up to 50%) · FHA: 43% · VA: 41%
PMI & MIP
Conventional: PMI required if down payment <20%, typically 0.5–1.5%/yr. FHA: upfront MIP 1.75% + annual 0.55–1.05%. VA: funding fee, no ongoing PMI.
🏷️ Affordable Price Ranges
Monthly Payment Breakdown
Debt-to-Income Analysis
2025 DTI Reference
| Range | Rating | Lender Options |
|---|---|---|
| <28% | ✅ Excellent | All loans, best rates |
| 28–36% | ✅ Good | All conventional |
| 36–43% | ⚠️ Marginal | FHA / strong file |
| 43–50% | ⚠️ Stretch | Conv w/ DU/LP approval |
| >50% | ❌ Too High | Most lenders decline |
💡 Ways to Improve Your Buying Power
⬆️ Increase Down Payment
Extra $10k down adds ~$15–20k buying power and eliminates PMI at 20% (saving $100–200/mo on a $400k loan).
💳 Pay Down Debt
Each $100/mo of debt eliminated adds ~$15–20k to your max purchase price under back-end DTI rules.
📉 Shop for Lower Rate
0.5% lower rate saves ~$120/mo on $400k loan. Get quotes from 3+ lenders including credit unions.
🏦 FHA vs Conventional
FHA allows higher DTI (43%) and lower credit scores (580+). Tradeoff: MIP required for life of most FHA loans.
Monthly Payment Composition
Buying Power at Different Loan Rates
📊 Rate Sensitivity — How Rate Changes Your Max Price