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How Much House Can I Afford?

Enter your income, monthly debts, and down payment to find your maximum home price using the lender-standard 28% front-end and 36% back-end DTI rules.

How Much House Can You Afford?

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$

Car loans, student loans, credit cards

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No PMI required ✓

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%/yr

Max Home Price

$280,490

Loan Amount

$224,392

Down Payment

$56,098

Monthly DTI

34%

Monthly Payment Breakdown

Principal & Interest

$1,493

Property Tax

$257

Insurance

$117

Total PITI

$1,867

Based on the 28% front-end / 36% back-end DTI guidelines. Does not include PMI or HOA fees.

Affordability by Income — Quick Reference

Estimates at 7% APR / 30-year / 1.1% property tax. For reference only.

Annual Income Monthly Debt Down Payment Est. Max Price
$50.000/yr $300/mo 10% $168.000
$60.000/yr $400/mo 10% $196.000
$75.000/yr $400/mo 20% $295.000
$90.000/yr $500/mo 20% $348.000
$100.000/yr $600/mo 20% $382.000
$120.000/yr $700/mo 20% $455.000
$150.000/yr $1000/mo 20% $555.000
$200.000/yr $1500/mo 20% $730.000

How Lenders Calculate Affordability

Mortgage lenders use two DTI thresholds. The front-end ratio (or housing ratio) limits your monthly PITI payment to 28% of gross monthly income. The back-end ratio limits all monthly debt — housing plus car loans, student loans, and minimum credit card payments — to 36% of gross income. Your maximum loan is determined by whichever threshold is more restrictive.

FHA loans allow higher DTI ratios (up to 43–50%) but require mortgage insurance. Conventional lenders may approve up to 45% DTI with strong compensating factors like excellent credit or large cash reserves.

Frequently Asked Questions

How much house can I afford on a $75,000 salary?

At $75,000/year with a 20% down payment and 7% rate, you can typically afford a home around $280,000–$320,000, keeping your PITI payment under $1,750/month (28% of gross income). Monthly debts like car payments reduce this limit significantly.

What is the 28/36 rule for a mortgage?

The 28/36 rule: spend no more than 28% of gross monthly income on housing (PITI) and no more than 36% on all debt combined (housing + car loans + student loans + credit cards). Lenders use these thresholds to assess mortgage affordability.

What is DTI and why does it matter for a mortgage?

DTI (debt-to-income ratio) = total monthly debt payments ÷ gross monthly income. Most conventional lenders require a DTI under 43%; the best rates go to borrowers with DTI under 36%. A high DTI means you qualify for a smaller loan or higher rate.

How much should I put down on a house?

20% down avoids PMI and gives you the best rates. FHA loans require just 3.5% down (580+ credit score). Conventional loans allow 3–5% down with PMI. A larger down payment reduces your monthly payment and total interest paid over the loan term.

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