Mortgage Tools
Mortgage Affordability Calculator
Enter your income, debts, and down payment to estimate the maximum home price you can afford under US lending guidelines.
Affordability Calculator
Update the amounts below to estimate how much home you can afford. Reset to default
Enter your income and debts to see affordability estimates.
Results are estimates based on standard DTI thresholds. Actual approval depends on your credit score, employment history, assets, and lender guidelines. Annual property tax and insurance will vary by location and policy.
How US Mortgage Affordability Works
US lenders qualify buyers using debt-to-income (DTI) ratios — the share of your gross monthly income that goes toward housing costs and total debts. There are two key ratios:
- Front-End DTI — Your monthly housing costs (principal, interest, PMI, property taxes, and insurance) divided by your gross monthly income. Conventional loans target 28% or below; FHA allows up to 31%.
- Back-End DTI — All monthly debt obligations (housing costs plus car payments, student loans, credit cards, etc.) divided by gross monthly income. Conventional loans target 36%; FHA allows up to 43%; VA loans allow up to 41%.
The calculator uses the more restrictive of these two limits to estimate your maximum affordable home price.
Loan type matters — Your minimum down payment and DTI thresholds depend on the loan type you choose. FHA loans have more flexible credit requirements but require mortgage insurance for the life of the loan. VA loans allow eligible veterans to buy with no down payment and no monthly PMI.
To improve affordability, focus on reducing existing debts, saving a larger down payment, and shopping for the best available interest rate.