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?
Car loans, student loans, credit cards
No PMI required ✓
Max Home Price
$280,490
Loan Amount
$224,392
Down Payment
$56,098
Monthly DTI
34%
Monthly Payment Breakdown
$1,493
$257
$117
$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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