How Much House Can I Afford?
Start from what you earn and owe, not from listings. This works backwards through the debt-to-income limits lenders use to the home price your budget supports.
What limits you
The housing ratio is the binding limit. Your other debts are low enough not to matter here.
Talk me through this budget
Sends only the numbers shown above (and your question) to an AI model via Vercel AI Gateway. Nothing is stored. It's a plain-language read, not financial advice.
The 28/36 rule, and when to ignore it
The 28/36 guideline comes from conventional mortgage underwriting: keep the full housing payment under 28% of gross income (the front-end ratio) and all monthly debt payments, housing included, under 36% (the back-end ratio). Fannie Mae and FHA programs can approve higher ratios with strong credit or reserves, which is what the 31/43 setting approximates.
Approval limits are not a budget. They're computed from gross pay, before taxes and retirement contributions, and they ignore daycare, commuting and the 1–2% of the home's value many owners spend on maintenance each year. Once you have a price, check the full payment on the home loan calculator.
Questions people ask
How much house can I afford on my salary?
Lenders commonly use the 28/36 guideline: housing costs (mortgage, taxes, insurance, HOA) up to about 28% of gross monthly income, and all debt payments together up to about 36%. The calculator applies whichever limit is tighter, then converts that payment into a price.
What is debt-to-income ratio (DTI)?
DTI is your total monthly debt payments divided by your gross monthly income. A housing payment of $2,000 plus $500 in car and card payments on $8,000 a month of gross income is a DTI of 31%. Many conventional loans allow up to about 45%, and FHA can go higher, but the lower your DTI the more breathing room you have.
Does the down payment change how much I can afford?
Yes. For the same payment, every dollar of down payment adds a dollar to the price you can buy, and 20% down also removes PMI, which frees more of the payment for principal and interest.
Should I buy at the maximum I qualify for?
Not necessarily. Qualifying numbers ignore childcare, savings goals, commuting and repairs. The "Comfortable" setting uses 25/33 to leave more margin.