House Affordability Calculator
Find the maximum home price you can comfortably afford — with full PITI breakdown, DTI color-flagging, and conservative vs FHA stretch scenarios.
Income & Debts
Down Payment
Loan Details
Taxes, Insurance & HOA (optional)
US avg ≈ 1.1%; TX/NJ ≈ 2%+
Max Home Price
$296,267
Standard (31/43)
Monthly PITI
$1,998
all-in monthly
Front-end DTI
30.0%
limit 31%
Back-end DTI
36.0%
limit 43%
Monthly Payment Breakdown (PITI)
Affordability by DTI Scenario
Conservative
Standard
FHA Stretch
Payment Breakdown Detail
| Component | Monthly | Annual |
|---|---|---|
| Principal & Interest | $1,577 | $18,922 |
| Property Tax | $296 | $3,555 |
| Insurance | $125 | $1,500 |
| Total PITI | $1,998 | $23,977 |
About this tool
A complete home affordability calculator that works backwards from your income and debts to the maximum home price you can qualify for — across three DTI guidelines (conservative 28/36, standard 31/43, and FHA stretch 36/50). Includes full PITI payment breakdown and side-by-side scenario charts.
How to use it
Quick steps to get the most out of this utility.
- 1
Enter income & debts
Annual gross income and monthly non-housing debt payments (car, student loan, credit card minimums).
- 2
Set down payment
Percentage or flat amount — 3.5% FHA minimum up to 20%+ conventional.
- 3
Fill loan details
Interest rate, term (15/20/30 yr), and DTI guideline (conservative / standard / FHA stretch).
- 4
Add taxes & insurance
Property tax rate, homeowners insurance, and HOA — all affect PITI and therefore your max price.
- 5
Read the result
Max home price, monthly PITI, DTI ratios, and a three-scenario comparison chart update instantly.
How "max home price" is calculated
The calculator solves for the home price that exhausts your DTI allowance: given your gross income, debts, and the DTI limits you choose, it derives the maximum monthly PITI, then back-calculates the loan size and home price that produces exactly that payment. Because property tax and HOA are also part of PITI, the calculation is iterative — the home price affects the tax amount, which affects the affordable price. Two passes converge the result.
What PITI includes
- P — Principal: The loan repayment portion of your mortgage payment
- I — Interest: The lender's cost for the outstanding balance
- T — Taxes: Monthly property tax escrow (lender collects to pay the county)
- I — Insurance: Homeowners insurance escrow, and PMI if down payment <20%
- HOA: Not technically PITI but often counted in front-end DTI by lenders
DTI thresholds at a glance
| Loan Type | Front-end DTI | Back-end DTI |
|---|---|---|
| Conventional (ideal) | ≤28% | ≤36% |
| Conventional (max) | ≤31% | ≤43% |
| FHA standard | ≤31% | ≤43% |
| FHA with compensating factors | ≤40% | ≤50% |
| VA / USDA | N/A | ≤41% |
Frequently asked questions
What is the 28/36 rule for buying a house?+
The 28/36 rule says your monthly housing payment (PITI — principal, interest, taxes, insurance) should not exceed 28% of gross monthly income, and your total debt payments (housing + car + student loans + minimums) should not exceed 36%. Staying within both limits keeps you solidly within conventional loan guidelines and leaves financial buffer for emergencies.
What does DTI mean for a mortgage?+
DTI stands for Debt-to-Income ratio. Front-end DTI is housing cost ÷ gross income; back-end DTI is (housing + all debts) ÷ gross income. Conventional lenders typically want front-end ≤28% and back-end ≤36–43%. FHA allows up to 31/43 with standard documentation and up to 40/50 with compensating factors. The lower your DTI, the better rate you typically qualify for.
What is the difference between conventional and FHA affordability?+
Conventional loans (Fannie/Freddie backed) typically require 5–20% down and cap back-end DTI at 43–45%. FHA loans allow 3.5% down with credit score ≥580, and stretch DTI to 50% with compensating factors. FHA loans carry an upfront MIP (1.75% of loan) and annual MIP (0.55–1.05%), which adds to monthly cost. Use the "FHA Stretch" DTI preset in this calculator to model FHA affordability.
Should I stretch my budget to buy the most house I can afford?+
Rarely advisable. The calculator shows the ceiling — not the target. A comfortable housing budget leaves room for maintenance (budget 1–2% of home value per year), property tax increases, HOA dues creep, and the inevitable appliance replacements. Many financial planners recommend targeting a home price of 2.5–3× your annual gross income rather than the DTI maximum, especially if you have other financial goals.
How much down payment do I really need?+
Technically as little as 3% (conventional) or 3.5% (FHA). But under 20% you will pay Private Mortgage Insurance (PMI) on conventional loans — typically 0.5–1.5%/yr of the loan added to monthly payments. PMI disappears once you hit 20% equity. Putting 20% down avoids PMI, reduces monthly payment, and gets you a lower interest rate. If 20% means waiting 2–3 years, run the rent-vs-buy math first.
How much house can I afford on a $100,000 salary?+
With $100k annual income, 20% down, 7% rate, and $400/month in existing debts, the standard 31/43 DTI guideline puts your max home price around $280,000–$320,000. Conservative 28/36 DTI brings it closer to $250k–$270k. FHA-stretch 36/50 DTI reaches ~$340k–$380k. Enter your exact numbers into the calculator for a precise figure — these are illustrative ranges.
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