What debt-to-income ratio should I use?
The conventional 28/36 rule is a common conservative starting point. FHA and VA options use higher back-end ratios, while the custom option lets you test a more conservative or more aggressive budget.
Estimate an affordable purchase price for a home based on household income, debt-to-income limits, down payment, interest rate, taxes, insurance, and fixed monthly housing budgets.
Use household income, recurring debt, and lender-style DTI limits to estimate a home price.
Start with a monthly housing budget and work backward to an estimated purchase price.
The income-based calculator estimates a maximum monthly housing payment from gross monthly income and recurring debt. It then works backward through mortgage principal and interest, taxes, insurance, HOA or co-op fees, maintenance, PMI, loan term, and down payment to estimate a purchase price.
The fixed-budget calculator starts with the amount you want to spend each month on housing and estimates the home price that fits that monthly payment.
Mortgage affordability is often framed through front-end and back-end debt ratios. The front-end ratio compares monthly housing costs to gross monthly income. The back-end ratio includes housing costs plus recurring debts such as car loans, student loans, and credit cards.
Conventional loan estimates use the 28/36 rule, FHA estimates use 31/43, and VA estimates use a 41% back-end ratio. Custom ratios from 10% to 50% let you compare more conservative and more aggressive purchase scenarios.
The conventional 28/36 rule is a common conservative starting point. FHA and VA options use higher back-end ratios, while the custom option lets you test a more conservative or more aggressive budget.
Yes. The income-based estimate includes property tax, insurance, HOA or co-op fees, maintenance, and an estimated PMI amount when the down payment is below 20%. The fixed-budget calculator lets you include or exclude those costs.
No. Lenders can use different underwriting rules, credit requirements, reserves, loan limits, and local tax or insurance assumptions. Treat this as a planning estimate before speaking with a lender.