How Much House Can I Afford?
Based on your income, monthly debts and down payment, see the home price that fits the 28/36 rule lenders use, and a stretch budget at FHA-style limits.
How lenders decide what you can borrow
| Loan type | Housing ratio | Total DTI |
|---|---|---|
| Conventional (guideline) | 28% | 36%, up to 45–50% with strong credit |
| FHA | 31% | 43%, higher with compensating factors |
| VA | — | 41% (residual income also counts) |
| USDA | 29% | 41% |
Your housing payment includes principal, interest, property tax, homeowners insurance, mortgage insurance and HOA dues. Property tax varies widely, from about 0.3% of value a year in Hawaii to over 2% in New Jersey and Illinois, so use your county's rate if you know it.
Frequently asked questions
How much house can I afford on $100,000 a year?
With $500 of monthly debts, $50,000 down and a 6.3% rate, about $330,000 under the 28/36 rule, including typical tax and insurance. Enter your own numbers above; rates and property taxes change the answer a lot.
What is the 28/36 rule?
Spend no more than 28% of gross monthly income on housing and no more than 36% on all debt payments combined, housing included.
Do I need 20% down?
No. Conventional loans allow as little as 3% down and FHA 3.5%, but under 20% down you'll usually pay mortgage insurance, which this calculator estimates at 0.5% of the loan a year.