How Much Home Can You Afford?

A common lender guideline is that your housing payment stays under about 28% of gross monthly income, and your total debts (housing plus car loans, student loans, credit cards, etc.) stay under about 36%. This tool uses that guideline as a conservative starting point — some loan programs, especially FHA and VA, allow higher ratios depending on your full financial picture.

No. This gives you a general ballpark based on standard income guidelines. A lender's pre-approval pulls your actual credit, verifies your income and debts, and factors in the specific loan program — that's the real number to shop with.

Recurring debt payments that show up on your credit report — car loans, student loans, minimum credit card payments, personal loans, and any other loan with a fixed monthly payment. Everyday expenses like groceries, utilities, and subscriptions aren't counted.

A larger down payment reduces how much you need to borrow, which lowers your monthly principal and interest — so more of your available housing budget can go toward a higher purchase price. It can also help you avoid PMI on a conventional loan if you reach 20% down.

Not directly. If your down payment is under 20% on a conventional loan, expect an additional monthly cost for private mortgage insurance that would reduce the price this tool estimates. VA loans typically don't require PMI at all.