How Much House Can I Afford?
A practical affordability framework using lender debt-to-income rules and real housing costs.
The 28/36 rule
Keep housing ≤28% of gross monthly income and total debt ≤36–43% depending on loan program.
Estimate your target payment
Gross income $8,000 → housing budget ≈ $2,240. Subtract $400 taxes + $120 insurance + $80 HOA + $70 PMI ≈ $1,570 left for principal & interest.
Translate payment to price
Use the affordability calculator to enter income, debts, taxes, and down payment. It outputs a target price range and DTI check.
Common adjustments
- Boost down payment to cut PMI.
- Pay down high-interest debt to lower back-end DTI.
- Choose a lower-tax district if you are near the limit.
FAQ
- Does student debt count? Yes, lenders use the reported payment or an imputed percentage of balance.
- Can I stretch above 36%? Some programs allow up to ~45% with strong credit and reserves.
- Should I include utilities? Not in DTI, but include them in your personal budget.
Affordability outputs are estimates, not lending decisions.
Run the affordability calculator or start with the main mortgage calculator.