House Affordability Calculator

Determine how much house you can afford based on your financial situation

๐Ÿ  House Affordability Calculator

Calculate how much house you can afford using two different methods: income-to-debt ratio or fixed monthly budget. Professional tools designed for U.S. residents.

๐Ÿงฎ Income-to-Debt Ratio Calculator

๐Ÿ“‹ Basic Information

$
Salary + other incomes (before tax)
$
Long-term debts, car, student loan, etc

๐Ÿฆ Loan Details

years
%

๐Ÿ’ณ Additional Costs

per year
per year
per year
Estimated Affordable Price
$0

๐Ÿ“Š Quick Results

Maximum Affordable Price
$0
Monthly Payment
$0
Down Payment
$0
* Real-time calculation, updates automatically as you type

๐Ÿ“ˆ Current Rates

30-Year Fixed
6.63%
15-Year Fixed
5.627%
10-Year Fixed
5.46%

๐Ÿ“š Home Affordability Knowledge

๐Ÿ“Š

Front-End Ratio

Housing expenses รท Gross income

โ‰ค 28% (Conventional) โ‰ค 31% (FHA)
๐Ÿ’ณ

Back-End Ratio (DTI)

Total monthly debt รท Gross income

โ‰ค 36% (Conventional) โ‰ค 43% (FHA) โ‰ค 41% (VA)
๐ŸŽฏ

Debt-to-Income Ratio (DTI)

DTI ratio is the percentage of your monthly gross income that goes toward paying your total monthly debt payments. It's the most important factor lenders use to determine how much home you can afford.

Calculation Formula:
DTI = (Total Monthly Debt Payments รท Gross Monthly Income) ร— 100
Example: If your monthly income is $6,000 and debt payments are $1,800, your DTI is 30%.
๐Ÿฆ

Loan Types & Requirements

Conventional Loan

Most Common
Front-end: โ‰ค 28%
Back-end: โ‰ค 36%
Down payment: Usually 5-20%
Credit score: 620+ preferred

FHA Loan

More Flexible
Front-end: โ‰ค 31%
Back-end: โ‰ค 43%
Down payment: As low as 3.5%
Credit score: 580+ accepted

VA Loan

Veterans Only
Back-end: โ‰ค 41%
Down payment: Possibly $0
No PMI required
Eligible veterans
๐Ÿ’ก

Tips to Improve Affordability

Immediate Actions

  • โœ“ Pay down existing debt
  • โœ“ Increase down payment amount
  • โœ“ Shop for better interest rates
  • โœ“ Consider longer loan terms

Long-term Strategies

  • โœ“ Increase income
  • โœ“ Improve credit score
  • โœ“ Save more for down payment
  • โœ“ Consider different areas
๐Ÿ’ก Pro Tip: Improving your credit score by just 1% could save you thousands of dollars in interest over the life of your loan.