First-Time Homebuyer Affordability Calculator
Find the maximum home price you can afford as a first-time buyer — with low down payment presets, PITI breakdown, and DTI guidance.
About this tool
A home affordability calculator built for first-time buyers who are still figuring out down payments and DTI limits. Includes 3–5% down presets, explains what PITI means, and shows three DTI scenarios so you know your range — not just a single number.
How to use it
Quick steps to get the most out of this utility.
- 1
Enter your gross income
Annual before-tax salary. Use combined income if buying with a partner.
- 2
Enter monthly debts
Car loans, student loans, credit card minimums. Do not include rent — that goes away.
- 3
Set your down payment
First-time buyers often start at 3–5%. 20% avoids PMI but takes longer to save.
- 4
Enter current rates
Check today's rates from a bank or Bankrate. Even 0.5% difference changes buying power by $20k–$30k.
- 5
Read your range
Conservative, standard, and FHA stretch scenarios give you a realistic range to shop within.
The first-time buyer budgeting sequence
- Get a pre-approval letter — it locks in the lender's DTI calculation and tells you your official ceiling
- Set your target payment — run this calculator at your actual comfort level, not the lender's maximum
- Estimate property tax for your target neighborhoods — it varies enormously (0.5% to 2.5%)
- Add HOA if buying condo/townhome — often $200–$600/month
- Budget for closing costs — typically 2–5% of purchase price above the down payment
- Keep 3–6 months emergency fund intact after closing
Frequently asked questions
What is the minimum down payment for a first-time home buyer?+
The lowest you can go: 3% on conventional loans (Fannie/Freddie HomeReady or Home Possible programs), or 3.5% on FHA loans with 580+ credit score. VA loans require 0% down for eligible veterans. USDA loans are also 0% down for eligible rural properties. The 20% "standard" avoids PMI but is not required.
How do first-time homebuyer programs affect affordability?+
Many states and cities offer down payment assistance (DPA) grants or low-interest second liens that reduce how much you need to bring to closing. Some programs also offer below-market first mortgage rates. These can effectively increase your purchasing power by $10,000–$30,000. Check your state housing finance agency (HFA) for current programs.
Should I include HOA fees in my budget?+
Yes — lenders count HOA fees as part of your housing payment for DTI purposes. HOA fees for condos and townhomes often run $200–$600/month, which materially reduces the max home price you qualify for. If you are considering a condo, look up its HOA fees before using this calculator.
What is PMI and should I pay it to buy sooner?+
PMI (Private Mortgage Insurance) costs 0.5–1.5%/yr of the loan amount when your down payment is under 20% on a conventional loan. On a $300k loan, that is $125–$375/month extra. It drops off once you hit 20% equity. Whether to pay PMI to buy sooner vs wait to save 20% down depends on rent costs, home price appreciation, and investment returns. In rapidly appreciating markets, paying PMI to buy earlier has often been the better financial decision.
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More views of the same calculator
Open main calculator →Same underlying engine, written for different use cases. Pick the angle that matches your situation.