Income
Monthly Debts
Loan Details
📐 How This Calculator Works
Front-End DTI (28% Rule)
Your total housing costs (P&I + taxes + insurance + HOA) should not exceed 28% of gross monthly income. This is the standard lender guideline.
Back-End DTI (36–43% Rule)
Your total debt payments including housing must stay under 36–43% of income. FHA loans allow up to 43%, conventional up to 36–45%.
Max Home Price
We calculate the maximum loan from your constrained monthly budget, then add your down payment to show the true maximum purchase price.
Your Affordability Summary
Debt-to-Income Ratios
📊 DTI Ratio Guide
| DTI | Rating | Lender View |
|---|---|---|
| < 28% | 🟢 Excellent | Easily approved, best rates |
| 28–36% | 🟢 Good | Strong approval odds |
| 36–43% | 🟡 Acceptable | FHA approved, some conventional lenders |
| 43–50% | 🔴 Risky | Hard to qualify; few lenders |
| > 50% | 🚫 Too High | Most lenders will decline |
Monthly Payment Breakdown
💡 Tips to Improve Affordability
Increase Your Down Payment
A larger down payment reduces your loan amount and monthly payment — and eliminates PMI when you hit 20%.
Pay Down Existing Debt
Reducing your monthly debt obligations directly increases the home price you can qualify for.
Shop for Better Rates
Even 0.5% lower interest rate can add tens of thousands to your buying power.
Consider a Longer Term
A 30-year mortgage has lower monthly payments than a 15-year, increasing what you can afford today.