Home Affordability Calculator
How much house can you actually afford? Based on real mortgage underwriting rules, not wishful thinking.
Frequently Asked Questions
How much house can I afford based on my salary?
A common rule is 2.5–3 times your annual household income. On a $100,000 salary, that's $250,000–$300,000. However, your actual budget depends on your down payment, interest rate, property taxes, insurance, and existing debts.
What is the 28/36 rule for home buying?
The 28/36 rule says your housing costs should not exceed 28% of gross monthly income and total debt payments should not exceed 36%. For a $6,000 monthly income, that's a $1,680 max housing payment and $2,160 total debt ceiling.
How does my credit score affect what I can afford?
A higher credit score gets you a lower mortgage rate. A 760+ score might qualify for 6% APR while a 650 score might get 7.5%. On a $300,000 loan, that 1.5% difference costs about $300/month and $108,000 over 30 years.
Should I include property taxes and insurance in my budget?
Yes. Property taxes and homeowners insurance can add 20–35% to your monthly payment. A $2,000 monthly mortgage can easily become $2,500–$2,700 with taxes, insurance, and PMI included. Always use PITI (Principal, Interest, Taxes, Insurance) for your budget.
How much do I need for a down payment?
Conventional loans require as little as 3% down, FHA loans need 3.5%, and VA/USDA loans may require 0%. However, putting 20% down eliminates PMI (private mortgage insurance), which typically costs 0.5–1% of the loan amount annually.
Why this matters
At $85,000 income with $60,000 down and 6.5% rate: you qualify for roughly a $300,000 house. That's not what you can stretch to — it's what lenders will actually approve. Add a $500 car payment and that drops to $265K. DTI is the hidden variable most first-time buyers miss.