Find out exactly how much home you can afford using real lender DTI guidelines.
📐 How This Calculator Works
Front-End DTI (28%)
Housing costs (P&I + tax + insurance + HOA) ≤ 28% of gross monthly income — standard lender limit.
Back-End DTI (43%)
All debts + housing ≤ 43% of income. FHA allows 43%; conventional lenders vary 36–45%.
Max Home Price
We solve for the most you can borrow under both DTI limits, then add your down payment.
Monthly Payment Breakdown
Debt-to-Income Ratios
| DTI | Rating | Lender View |
|---|---|---|
| <28% | ✅ Excellent | Best rates |
| 28–36% | ✅ Good | Conventional approved |
| 36–43% | ⚠️ Marginal | FHA only |
| >43% | ❌ Too High | Most lenders decline |
💡 Tips to Improve Your Buying Power
Increase Your Down Payment
Extra $10k down can add ~$15–20k to buying power and eliminates PMI at 20%.
Pay Down Existing Debt
Each $100/mo of debt eliminated adds ~$15–20k to your maximum purchase price.
Shop for a Better Rate
0.5% lower rate saves ~$120/mo on a $400k loan — significant over 30 years.
Compare 15 vs 30 Year
30yr lowers monthly payment; 15yr saves dramatically on total interest paid.
Monthly Payment Composition
Affordability at Different Prices