Home Affordability Calculator
Find out how much house you can really afford using the lender-standard 28/36 rule. Enter your income and debts to get your maximum home price.
Your Financial Details
Find Your Price Range
Enter your income and debt details to calculate the maximum home price a lender will likely approve you for.
Understanding the 28/36 Rule
What is the 28/36 Rule?
The 28/36 rule is the standard lender guideline for mortgage qualification. It has two parts: your housing costs (principal, interest, taxes, and insurance — known as PITI) should not exceed 28% of your gross monthly income (front-end ratio), and your total monthly debt obligations should not exceed 36% of your gross monthly income (back-end ratio). The lower of the two limits determines your maximum qualifying payment.
How Credit Score Affects Your Affordability
Your credit score directly determines the interest rate you’ll be offered — and even a small rate difference has a massive impact on affordability. A borrower with a 760+ score might qualify for a rate 0.5–1.0% lower than someone at 680. On a $400,000 loan, that’s a difference of $120–$240 per month, which translates into $20,000–$40,000 more home you can afford. Before applying, pull your free credit reports and dispute any errors.
Why Lenders Look at DTI — and the Limits Aren’t Absolute
DTI is a lender’s primary tool for measuring repayment risk. Borrowers with high debt loads relative to income default at higher rates. That said, the 36% back-end guideline is conservative. Conventional loans backed by Fannie Mae and Freddie Mac can approve borrowers up to 43–45% DTI with compensating factors — excellent credit (760+), large reserves (6+ months of payments saved), or a strong employment history in a stable field. FHA loans can go up to 50% DTI in some cases.
Pre-Qualification vs. Pre-Approval
A pre-qualification is an informal estimate based on self-reported numbers — no credit pull, no document verification. It’s useful for ballpark planning but carries no weight with sellers. A pre-approval involves a hard credit inquiry, income documentation (W-2s, tax returns, pay stubs), and asset verification. It results in a conditional commitment letter from the lender — a serious signal to sellers that you can actually close. In competitive markets, a pre-approval letter is often required just to make an offer.
Tips to Increase Your Affordability
- Pay down high-balance debts before applying to reduce your back-end DTI
- Increase your down payment to reduce the loan amount needed
- Improve your credit score to qualify for a lower interest rate
- Consider a 15-year term if you can afford higher payments — rates are lower
- Include all qualifying income: bonuses, rental income, side income (if documented)
- Shop multiple lenders — rates can vary 0.25–0.5% between institutions