Estimate how much house you can afford using either your household income and debts or a fixed monthly housing budget. Understand the 28/36 rule, the difference between front-end and back-end DTI, how conventional lenders set limits, and when a purchase becomes unaffordable — even if a lender approves it. Includes live mortgage rate lookup for U.S. users.
Estimates only, not a loan offer or approval. Actual qualification depends on credit, assets, loan program and lender underwriting.
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Understanding the Numbers
Front-End Ratio
Also called the housing or mortgage-to-income ratio, it compares your total monthly housing cost with your gross (pre-tax) monthly income. Housing cost means principal, interest, property tax, insurance, HOA dues and any mortgage insurance.
Back-End Ratio
This is your full debt-to-income (DTI) ratio. It adds recurring obligations such as auto loans, student loans and minimum credit card payments to housing costs. Lenders usually weigh it most heavily.
Conventional Loans and the 28/36 Rule
A conventional loan is not insured by a federal agency. Many follow Fannie Mae or Freddie Mac guidelines (conforming loans); others fall outside them (non-conforming, e.g. jumbo). The classic 28/36 guideline says housing should stay at or below 28% of gross income, and total debt at or below 36%. Lenders may approve higher ratios with strong credit, savings or a large down payment, but the rule remains a sound, conservative target.
| Loan type | Front-end | Back-end |
|---|---|---|
| Conventional | 28% | 36% |
| FHA | 31% | 43% |
| VA | Not used | 41% |
FHA loans carry mortgage insurance premiums that let lenders accept higher ratios; VA loans are guaranteed by the Department of Veterans Affairs and typically charge a funding fee. This calculator adds an estimated 0.55% annual FHA premium and 0.5% PMI for conventional/custom scenarios with under 20% down.
Custom Debt-to-Income Ratios
Choose any back-end DTI from 10% to 50% in 5% steps. Lower figures give a cautious budget that leaves room for emergencies; higher figures stretch your buying power but raise risk. Above 50%, few lenders will lend. Not sure? Start with the conventional 28/36 setting.
Unaffordability: What If the Numbers Fall Short?
- Cut other debt: paying off a car or student loan frees up back-end room.
- Raise your credit score: better scores earn lower rates, which increases purchasing power.
- Save a bigger down payment: it lowers the loan, can remove PMI at 20%, and may improve your rate.
- Build reserves: savings can offset a high DTI in underwriting.
- Increase income: a second earner or raise changes every ratio immediately.
- Widen your search: consider cheaper areas, local down-payment assistance, or renting while you prepare.
Popular U.S. Mortgage Lenders
Four well-known lenders and the kinds of terms to review. This is a general summary, not an endorsement; lenders are not affiliated with this site. Programs, rates, fees and eligibility change often, so confirm everything on the lender’s website and in its official Loan Estimate.
Rocket Mortgage
Online-first lender offering conventional, FHA, VA and jumbo loans.
- Credit check and application required; rate quotes are not guaranteed until locked.
- Low-down-payment options exist, with minimum credit scores that vary by program.
- Expect origination, appraisal, title and other closing costs.
Bank of America
National bank with conventional, FHA, VA and jumbo options.
- Offers an affordable-lending program with a low down payment, subject to income and property limits.
- Homebuyer education may be required for some programs.
- Rate lock periods and closing costs apply; relationship discounts may vary.
Chase
Large retail bank offering purchase mortgages across loan types.
- Low-down-payment programs, where available, have income and eligibility rules.
- Mortgage insurance applies when conventional down payment is under 20%.
- Appraisal, escrow and closing fees are additional; review rate-lock terms.
Veterans United Home Loans
Specialist in VA loans for service members, veterans and eligible spouses.
- Requires a VA Certificate of Eligibility.
- VA funding fee usually applies unless exempt (e.g. certain disability ratings).
- Often no down payment; you must still meet credit, income and residency rules.
Frequently Asked Questions
How much house can I afford on my salary?
A common starting point is the 28/36 rule. On a $100,000 income (about $8,333 a month), 28% is roughly $2,333 for housing, and 36% is $3,000 for all debts combined. With $500 of other monthly debt, the front-end limit is the tighter one, so your housing payment would cap near $2,333. Enter your own numbers in the calculator above for a price estimate.
What is the 28/36 rule and do lenders really follow it?
It says housing should take no more than 28% of gross monthly income, and total debt no more than 36%. It is a guideline from conventional lending, not a law. Lenders may approve higher ratios with strong credit, savings or a larger down payment, but staying near 28/36 keeps payments comfortable.
How much down payment do I need to buy a house?
It depends on the loan. Some conventional programs allow as little as 3% down, FHA loans typically start at 3.5%, and VA loans often need nothing down for eligible borrowers. Putting 20% down on a conventional loan usually avoids private mortgage insurance (PMI) and lowers your monthly cost.
Does my credit score change how much I can afford?
Yes, indirectly. A higher score generally earns a lower interest rate, and a lower rate means a smaller payment on the same loan, so you can borrow more within your ratios. Scores also affect which programs you qualify for and what mortgage insurance costs.
What costs should I budget for besides the mortgage payment?
Plan for property tax, homeowners insurance, HOA or co-op dues, mortgage insurance if you put down less than 20%, and ongoing maintenance and utilities. One-time closing costs and moving expenses also need cash. The calculator includes the recurring items so your estimate reflects the full monthly cost.
FHA, VA or conventional: which gives me more buying power?
FHA (31/43) and VA (41% back-end) allow higher debt ratios than the conventional 28/36 guideline, which can raise your price ceiling. They add costs, such as FHA mortgage insurance and the VA funding fee, so compare total monthly payments, not just the price you qualify for.
How can I afford a more expensive home?
Pay down monthly debts, raise your credit score, save a larger down payment, build cash reserves, and shop several lenders for the best rate. Increasing income helps most because every ratio improves at once. If you are still short, consider a lower-priced area or local down payment assistance programs.
Should I buy the maximum house I qualify for?
Not necessarily. Lenders look at ratios, not at your lifestyle, savings goals or job stability. Many buyers choose a lower payment than the maximum so they can handle repairs, rate or tax changes, and unexpected expenses. Try the lower DTI settings, such as 25–30%, for a more conservative figure.
Disclaimer: This page is for education only and is not financial, legal or tax advice. Results are estimates based on the figures you enter.