💰 Home Affordability Calculator
Discover how much house you can afford based on your income, monthly debts, and down payment using the industry-standard 28/36 rule.
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Frequently Asked Questions
How much house can I afford?
Lenders use the 28/36 rule: housing costs shouldn't exceed 28% of gross monthly income, and total debt shouldn't exceed 36%. However, just because you qualify for a certain amount doesn't mean you should spend it all. Consider your lifestyle, savings goals, and emergency fund when deciding.
What is the 28/36 rule?
The 28/36 rule is a lending guideline: 28% = maximum housing costs (mortgage, taxes, insurance, HOA) as a percentage of gross monthly income. 36% = maximum total debt payments (housing + car + credit cards + loans) as a percentage of gross monthly income. Exceeding these ratios makes loan approval difficult.
Should I max out my home budget?
No! While lenders may approve you for 28% of income, aim for 25% or less for comfort. Maxing out leaves little room for emergencies, savings, or lifestyle changes. Consider job stability, future income potential, and other financial goals before committing to the maximum amount.
How much down payment do I need?
20% down is ideal (avoids PMI, better rates, lower monthly payment), but not required. Conventional loans: 3-5% down. FHA loans: 3.5% down. VA loans: 0% down for veterans. USDA loans: 0% down in eligible rural areas. Lower down payments mean higher monthly payments and PMI costs.
What other costs should I consider?
Beyond mortgage, budget for: property taxes (1-2% of home value annually), homeowners insurance ($1,000-3,000/year), HOA fees ($100-700/month), maintenance (1% of home value annually), utilities ($200-400/month), and closing costs (2-5% of purchase price). These add up quickly!
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.