How Much House Can I Afford?
Find your home buying budget based on gross income, monthly debts, down payment, and current interest rates. Includes front-end and back-end DTI analysis.
Affordability Calculator
Income · Debts · DTI analysis · Buying power
How Lenders Determine How Much You Can Borrow
Lenders use two primary ratios to evaluate affordability: the front-end ratio (housing costs vs. income) and the back-end ratio (all debts vs. income). The back-end ratio — also called DTI or debt-to-income ratio — is the most important qualifying factor.
Front-End Ratio (Housing Ratio)
This compares your total monthly housing payment (principal, interest, taxes, insurance) to your gross monthly income. Most conventional loans prefer this below 28%. FHA loans may allow up to 31%.
Back-End Ratio (Total DTI)
This compares all monthly debt payments — housing, car loans, student loans, credit cards — to your gross monthly income. Conventional loans typically allow up to 43–45%. FHA loans may go to 50% with compensating factors.
The 28/36 Rule
A conservative guideline: spend no more than 28% of gross income on housing and no more than 36% on all debt combined. This keeps your finances resilient and reduces the risk of being house-poor.
