How Much House Can I Afford?

Find out what price range is realistic for you in about a minute. Lenders don't ask "how much is the house?" first; they ask "how much of your income would go to debts?"

Your income. Enter what you earn each month before tax, plus the cash you have for a down payment.
Your debts. List monthly payments such as a car loan, student loans and credit card minimums. (Not rent, utilities or groceries.)
Your answer. We work out the highest price lenders would usually allow, a more comfortable price, and your monthly payment at that price.

The key number is DTI (debt-to-income): all your monthly debts, including the new house payment, as a share of your income. Most loans allow up to about 43%; around 36% usually feels comfortable.

These numbers are estimates only and may not be accurate. They depend on your real interest rate, credit, income and the home's actual taxes and insurance. Contact us for accurate figures; it's free and there's no obligation. The starting interest rate (6.5%) is an example only, not a quote: your rate depends on your credit, loan type, down payment and the market, and can be higher or lower. Change it to see the difference.

Your income and debts

Your gross monthly income ($) before tax

Cash for down payment ($)

Maximum DTI (%) typical 43–45

Buying with a spouse, partner, parent or other family member? Add each person who will be on the loan. Rules for family members who won't live in the home vary by loan type.

Your debts

List each debt: roughly how much is still owed and the monthly payment. We work out the months left for you.

Type

Still owed ($)

Monthly payment ($)

Type

Still owed ($)

Monthly payment ($)

Loans with 10 months or fewer left are usually not counted by lenders. Leases, credit cards and support payments always count.

Loan and home costs

Loan type

Interest rate (%) example

Loan term

Property tax (% of price per year)

Home insurance ($ per year)

HOA dues ($ per month)

Real-life budget (optional): see what's left each month

Take-home pay ($ per month) after tax

Groceries & household ($)

Car costs: fuel, upkeep ($)

Car, health & life insurance ($)

Utilities, phone, internet ($)

Childcare & school ($)

Everything else ($)

Savings goal ($)

Left over each month at the maximum price—

Worked example

Maria earns $8,000 a month before tax, pays $500 a month for her car and credit cards, and has $20,000 saved. Here's how a lender would size her budget (FHA loan, example rate 6.5%, property tax 1.2% and insurance $2,800 a year):

Step	Maximum (43% DTI)	Comfortable (36% DTI)
1. Share of income allowed for all debts	$8,000 × 43% = $3,440	$8,000 × 36% = $2,880
2. Minus her existing debts	− $500	− $500
3. Left for the house payment (with tax, insurance and mortgage insurance)	$2,940 a month	$2,380 a month
4. Home price that payment buys	about $362,000	about $290,000

Lower debts, a bigger down payment or a lower rate all raise the price. Paying off the $500 of debts would raise her maximum by about $60,000.

What's next?

Check down payment grantsHelp that may cover part of your down payment.Go →Get matching homes sent to youHomes in your price range, as they're listed.Go →Get pre-approvedFind out exactly how much you can borrow. It's free, there's no obligation, and sellers take your offer more seriously.Go →

Common questions

How much house can I afford?

Lenders mainly look at your debt-to-income ratio (DTI): your total monthly debts, including the new house payment, divided by your gross monthly income. Many loans allow up to about 43% to 45%, and some go higher with strong credit or savings. Staying nearer 36% usually feels more comfortable.

What is DTI?

Debt-to-income ratio. Add up your monthly debt payments (car, student loans, credit card minimums, child support) plus the new housing payment, then divide by your monthly income before tax. $3,000 of payments on $8,000 of income is a 37.5% DTI.

Does the down payment change how much I can afford?

Yes. More cash down means a smaller loan, a lower payment and often no mortgage insurance, so the same budget stretches to a higher price. Down Payment Grants can help too.

Why include a real-life budget?

Lenders don't count groceries, fuel, childcare or savings, but you still have to pay them. The budget step shows what would be left each month at your maximum price, so you can choose a price that feels comfortable, not just one you qualify for.

For education and planning only. Approximate estimates; not legal, tax or financial advice. Not a loan offer, approval or commitment to lend. Example rates are for illustration only; rates can change and may not be available at commitment or closing. Rates, terms, taxes, insurance and program rules vary and change; your actual numbers may differ. Mortgage services by Bill McElhill, NMLS #2176490, licensed in Florida, Georgia and Texas.

Buying a home: step 2 of 9

Your next step: Down payment help

Grants and assistance you may get.

Down payment help → Or ask Bill

Your income and debts

Your debts

Loan and home costs

Worked example

What's next?

Common questions

Your next step: Down payment help

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