How much house can I afford?

Works backward from the payment a lender will approve to the price you can shop for.

Gross annual income ($)

Monthly debt payments ($, cards, cars, student loans)

Down payment ($)

Interest rate (%)

Term (years)

Property tax (% of price per year)

Home insurance ($ per year)

HOA ($ per month)

Debt to income limits

Mortgage insurance (% of loan per year, if under 20% down)

Your inputsNothing is saved or sent. Standard amortization. The housing payment includes principal, interest, taxes, insurance, HOA and mortgage insurance when the down payment is under 20 percent.

How to read it

Lenders approve a payment, not a price. Two ratios cap that payment: the housing ratio (your full house payment divided by gross monthly income) and the total ratio (house payment plus every other monthly debt). The calculator takes the lower of the two caps, subtracts taxes, insurance, HOA and mortgage insurance, and solves for the loan that payment supports. Add your down payment and that is your price.

The ratio preset matters more than the rate. FHA underwriting commonly allows a higher total ratio than a conservative 36 percent, and automated approvals on strong files go higher still. Pick the preset that matches the loan you expect, then ask a lender to confirm before you shop.

An illustration, not a loan offer, a rate quote or advice. Your numbers depend on your application, the property and the lender. See disclaimers.

Questions people ask

What debt to income ratio do lenders use?

Conventional loans run through automated underwriting commonly allow a total ratio up to 45 percent, and higher with strong compensating factors. FHA guidelines cite 31 percent housing and 43 percent total for manual underwriting, with automated approvals above that. VA uses 41 percent as a guideline with residual income as the real test. These are guidelines, not promises.

Does the down payment change how much I can afford?

Yes, twice. It adds directly to the price, and under 20 percent down on a conventional loan it triggers mortgage insurance, which eats part of the payment the lender will allow.