Calculate your home affordability based on income, debts, and down payment
Get pre-approved before house hunting to know your exact budget and show sellers you're serious.
Keep 3-6 months of expenses saved after your down payment for unexpected homeowner costs.
Budget for closing costs (2-5% of home price), moving expenses, and immediate repairs/furnishing.
Property taxes and insurance vary significantly by location - research your target areas thoroughly.
A 1% rate increase can reduce affordability by 10-15%. Consider rate locks and timing.
Always get a professional home inspection to avoid costly surprises after purchase.
Your calculation result provides important insights for making informed decisions. The house affordability calculator takes into account income, debt payments, down payment, interest rate, location to give you an accurate estimate that you can use for planning and budgeting purposes.
House affordability calculation is the foundation of responsible homebuying, ensuring you purchase within your financial means while accounting for all ownership costs. Understanding debt-to-income ratios, down payment impacts, and total housing costs helps prevent overextending financially and builds long-term wealth through homeownership.
Most lenders prefer total debt-to-income (DTI) ratios below 43%, with housing costs under 28% of gross income. However, some programs allow higher ratios with strong credit and larger down payments. FHA loans may accept DTI up to 57% in some cases.
20% down payment avoids PMI and typically gets better rates, but isn't always necessary. FHA loans require only 3.5% down, and some conventional loans accept 3%. Consider your savings, local market conditions, and opportunity cost of using cash versus investing.
Generally no. Lenders qualify you for maximum amounts, but buying below your limit provides financial flexibility for maintenance, improvements, job changes, and other life events. Consider 20-25% below maximum qualification for better financial security.