Mortgage planning

How Much House Could You Afford?

Work backwards from your income, debts and deposit to estimate an affordable property price.

Your budget

U.S. lenders qualify borrowers using verified income, recurring debts, credit, assets, reserves and the full housing payment. Choose a planning scenario below; it is not an approval decision.
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Calculated from the debt breakdown below
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Monthly debt breakdown

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Emergency-fund guardrail

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Excluding the proposed mortgage payment
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Planning guardrail; lender methods vary
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Subtracted from available cash before down payment

Can I afford this home?

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U.S. planning estimate only—not a loan approval or legal advice. Fannie Mae generally limits manually underwritten total DTI to 36%, with qualifying cases up to 45%, while DU casefiles may allow up to 50%. FHA commonly permits a minimum 3.5% investment, subject to eligibility and underwriting. Confirm current requirements with a licensed lender. Sources: Fannie Mae and HUD.

Estimate a home price from income, debt and cash

This U.S. mortgage affordability calculator begins with gross monthly income and two editable limits: housing expenses as a share of income, and housing plus other monthly debt payments. It uses the smaller housing budget, subtracts your entered recurring housing costs, and converts the remainder into a loan at the chosen rate and term. Available down‑payment funds are then added to estimate a price.

How the two ratio limits interact

Suppose gross income is $8,000 a month, existing debt payments are $650, the housing limit is 28% and the total‑DTI limit is 36%. The housing test allows $2,240; the debt test allows $2,230 after existing debts. The model uses $2,230. If taxes, insurance and HOA total $530, that leaves $1,700 for principal and interest. Changing debt matters only when the total‑DTI test constrains the result.

Keep the down payment and reserve separate

The usable down payment is savings minus closing costs and the emergency reserve, floored at zero. The reserve is essential monthly expenses multiplied by the number of months you choose. For example, $55,000 saved minus $9,000 of closing costs and a $12,000 reserve leaves $34,000 for the price estimate. The main result can remain positive even when cash for closing costs is insufficient; the target‑home check helps reveal that gap.

The remaining‑income figure is before tax and living costs

The model does not build a full take‑home budget. Essential expenses set the reserve but are not subtracted from the monthly affordability calculation. Remaining income is gross income after entered debt and housing costs, before income taxes, groceries, childcare and other everyday spending. Compare the proposed payment with your actual take‑home budget before treating it as comfortable.

What the underwriting presets leave out

The presets adjust planning ratios; they do not run a lender’s underwriting system. FHA mode additionally uses a 3.5% down‑payment assumption to constrain the estimated price, but does not automatically add FHA insurance or upfront MIP. Other modes do not impose a complete program‑specific minimum deposit. Include applicable monthly mortgage insurance in recurring housing costs and verify actual program terms.

Test a particular property

Enter the target price and down‑payment percentage, then compare required income, cash needed and any shortfall. Update taxes, insurance and closing costs for that property because the model does not look them up or recalculate them from location. A lower‑rate scenario shows sensitivity; it is not a rate quote or a prediction.

CFPB: understanding debt‑to‑income ratios

Estimate the mortgage payment and recurring housing costs

Mortgage affordability calculator FAQ

Should I enter gross or take-home income?

Enter gross monthly income before taxes and deductions. Separately check the proposed payment against take-home pay and actual living expenses; this calculator does not perform that full household-budget test.

Is the 28/36 rule a guaranteed approval standard?

No. Those percentages are planning assumptions. The tool uses the smaller budget produced by the housing ratio and total-debt ratio, but it does not verify income, credit or program eligibility.

Does remaining income mean money left for discretionary spending?

No. It is gross income after entered housing and debt payments, before income taxes and everyday living costs. Essential expenses affect the emergency reserve, not this monthly subtraction.

How much of my savings becomes the down payment?

Savings are reduced by entered closing costs and the emergency reserve. The remainder, with a minimum of zero, becomes the usable down payment. Check the target-home cash shortfall if savings are insufficient.

Does FHA mode include mortgage insurance?

Not automatically. FHA mode applies a 3.5% down-payment assumption, but does not add monthly FHA mortgage insurance or upfront MIP. Include applicable monthly insurance in housing costs and check upfront funding separately.

Does paying off another debt always raise the estimated price?

No. It helps when the total-DTI test is the constraint. If the housing-ratio limit already sets the smaller budget, reducing another debt may not change the result.

Are taxes and insurance updated when I change the target price?

No. Enter current estimates for each property. The tool keeps the entered housing and closing costs unchanged and does not fetch local tax or insurance data.