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United States · Home Buying

Home Affordability Calculator

How much house can you afford? Enter your income, debts, and down payment — we'll compute the max home price and which loan programs (FHA, Conventional, VA, USDA) you qualify for.

How affordability is calculated

Lenders use your back-end DTI ratio (debt-to-income) as the primary affordability gate. The back-end DTI is the percentage of your gross monthly income that goes toward all monthly debt payments — including the new housing payment (PITI), car loans, student loans, and credit-card minimums.

The math works backward from your DTI cap:

  1. Max housing payment = (target DTI × monthly gross income) − existing monthly debts
  2. Max P&I = max housing payment − property tax − insurance − HOA
  3. Max loan amount = inverse PMT of max P&I, given rate and term
  4. Max home price = max loan amount + your down payment

DTI caps by loan program

  • FHA: back-end DTI up to 43% (sometimes 50% with compensating factors)
  • Conventional: up to 50% back-end DTI with strong credit
  • VA: 41% target — exceptions allowed
  • USDA: 41% back-end DTI cap

For a precise DTI breakdown including front-end ratio and existing debts, see the DTI Calculator. To estimate the actual monthly payment at your target home price, use the Mortgage Calculator.