How much home can
you actually afford?

Not what the internet says. Not a guess. The same formula lenders use — run with your real numbers.

The two ratios that determine what you qualify for

When you apply for a mortgage, lenders don't just look at your income. They look at two specific debt-to-income ratios that tell them how much of your paycheck is already committed to debt. Understanding these helps you know exactly where you stand before you ever talk to a lender.

28%Front-End DTI

Housing ratio

Your total housing payment (mortgage + taxes + insurance + PMI) should be no more than 28% of your gross monthly income. This is the first thing lenders check.

Example: $5,000/mo income → max housing payment of $1,400/mo
36–43%Back-End DTI

Total debt ratio

All your monthly debts combined (housing + car + student loans + credit cards) should be no more than 36–43% of gross income. FHA allows up to 50% in some cases.

Example: $5,000/mo income, $400 in debts → max housing of $1,400/mo

What most people get wrong

Most online calculators show you the maximum you might qualify for. That's not the same as what you should spend. A lender approving you for $350,000 doesn't mean you'll be comfortable at $350,000. I always recommend targeting 20–25% of take-home pay for housing costs, not gross income. That leaves room for life — repairs, savings, emergencies, and actually enjoying your home.

What counts as "debt" to a lender?

Car loan or lease paymentsCounts
Student loan minimum paymentsCounts
Credit card minimum paymentsCounts
Personal loan paymentsCounts
Child support / alimonyCounts
Other mortgage paymentsCounts
Utilities (electric, water, etc.)Doesn't count
Groceries and subscriptionsDoesn't count
Cell phone billsDoesn't count
Insurance premiumsDoesn't count

Find your affordability range

Uses the same formula lenders use. Pre-filled with today's rate.

$65,000
$30k$300k

Monthly gross: $5,417/mo

$400/mo

Car, student loans, credit card minimums, etc.

$15,000

Don't have much saved? Check DPA programs →

7.00%

28% front-end DTI — standard lender guideline

Recommended Max Home Price

$174,581

$1,517/mo total housing cost

Price Ranges

Conservative

Comfortable, low stress

$154,042

Recommended

Right balance of home and life

$174,581

Maximum

What you may qualify for

$205,390

Your DTI Ratios

Front-end (housing)28%
Back-end (all debts)35%
Max loan amount$190,390
Get Pre-Approved

Estimates only. Actual qualification depends on credit, loan type, and lender guidelines.

Now let's make it real

Get pre-approved in 24–48 hours. Adreanne will connect you with the right lender for your situation.

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Hi! I'm Adreanne's assistant. Are you looking to buy, sell, or just find out what you qualify for? I can help right now!

AI assistant · Not legal or financial advice