How Much House Can I Afford

“How much house can I afford?” is not the same question as “How much will a lender approve?” Affordability is a planning estimate from income, existing debts, a down payment, and housing costs. Approval is an underwriting decision. Start with the mortgage affordability calculator, then treat the result as a ceiling to stress-test — not an offer.

What the estimate is doing

The calculator starts with editable 28% housing and 36% total-debt assumptions as conservative planning defaults. Those ratios are not universal lender limits. Conventional, FHA, VA, and other programs use different debt-to-income (DTI) frameworks, and lenders apply overlays. The Consumer Financial Protection Bureau explains DTI as one underwriting factor among several, not a single pass/fail number for every mortgage.

Estimated housing costs in that tool may include principal and interest, property taxes, homeowners insurance, applicable estimated PMI, and HOA fees. If the implied LTV is above 80%, estimated PMI is subtracted from the housing budget so the affordable price is not inflated. See what PMI is and how it works.

A simple way to read the result

If gross monthly income is $8,000, a 28% housing assumption is $2,240 before other debts. If car and student-loan minimums already take $800, a 36% back-end cap is $2,880 total debts, so only $2,080 remains for housing — the back-end limit binds first. Raising the ratio inputs does not make a lender accept them; it only shows sensitivity.

After you have a price range, run the mortgage calculator with taxes, insurance, and PMI at a quoted note rate (example rates only, not a forecast) and ask whether that payment still leaves room for maintenance, furnishings, and an emergency reserve.

What this estimate leaves out

• Credit score, employment history, and asset seasoning.
• Appraisal, title, and condo-project eligibility.
• Closing costs, which are not the same as the down payment.
• Future tax or insurance increases.

If the payment only works on a 30-year term and you were hoping for a 15-year loan, read 15-year vs 30-year mortgage differences before stretching the price.