Home Affordability Calculator
DTI + Max Home Price
Enter your income and monthly debts to see your DTI ratio and the maximum home price you can qualify for.
Before taxes. Include all sources.
Total monthly debts: $600
Maximum Home Price
$305,874
Home price changes with term, rate & down payment
Lender DTI Guidelines
These are estimates based on standard DTI guidelines.
A licensed loan officer can give you a more accurate pre-qualification based on your full credit profile, employment history, and lender-specific guidelines.
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How Much House Can I Afford?
The answer depends on two things: your income and your existing debts. Lenders use a metric called the Debt-to-Income ratio (DTI) to decide how much they are willing to lend you. This calculator works backwards from your income and debts to show you the maximum home price you can realistically qualify for.
There are two DTI limits lenders look at. The front-end DTI looks only at your housing costs — principal, interest, taxes, and insurance — and most lenders prefer this to stay at or below 28% of your gross monthly income. The back-end DTI adds all your other monthly debts on top of housing, and lenders typically want this below 43%. Your maximum home price is determined by whichever limit hits first.
How to Use This Calculator
Step 1 — Enter your gross monthly income
Use your total income before taxes from all sources — salary, freelance, rental income, etc. Lenders use gross income, not take-home pay.
Step 2 — Add your monthly debt payments
Include all recurring monthly obligations: car payments, student loans, minimum credit card payments, personal loans, child support, etc. Do not include utilities, groceries, or subscriptions — only debts that show on your credit report.
Step 3 — Set your loan parameters
Enter the current interest rate, your preferred loan term, and how much you plan to put down. A higher down payment increases your max home price and eliminates PMI at 20%.
Step 4 — Read your results
The calculator shows your maximum home price, the loan amount, and both DTI ratios with a color-coded status. If your back-end DTI is in the orange or red zone, consider paying down debts before applying — even reducing your car payment can meaningfully increase your buying power.
What Is DTI and Why Does It Matter?
DTI stands for Debt-to-Income ratio. It is the single most important number lenders look at when deciding whether to approve your mortgage. A low DTI tells a lender that you have enough breathing room in your budget to handle a mortgage payment comfortably. A high DTI signals financial stress and increases the risk of default from the lender's perspective.
Most conventional loans require a back-end DTI of 43% or lower. FHA loans can sometimes go up to 50% with compensating factors like a high credit score or large cash reserves. VA loans are more flexible but still consider DTI carefully. The lower your DTI, the better your approval odds and the better interest rate you are likely to receive.
Tips to Improve Your DTI
Pay off small debts first
Eliminating a $200/month car payment adds roughly $40,000–$50,000 to your buying power at today's rates.
Avoid new debt before applying
Taking out a new car loan or opening new credit cards right before applying can push your DTI over the limit even if you were borderline before.
Increase your income
Adding a co-borrower, getting a raise, or documenting side income can significantly raise your qualifying amount.
Save a larger down payment
A bigger down payment means a smaller loan, which means lower monthly payments and a better DTI — and you may avoid PMI at 20%.
This calculator provides estimates for informational purposes only and does not constitute financial or lending advice. Actual qualification depends on credit score, lender guidelines, and other factors. Contact a licensed mortgage professional for a full pre-qualification.
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