🏠 Finance

Home Affordability Calculator 2026 — How Much House Can I Afford?

Find the maximum home price you can afford based on your income, debts, and loan type. Uses front-end and back-end DTI ratios for Conventional, FHA, and VA loans, with PMI, property tax, and insurance included in the calculation.

Combined income if buying with a co-borrower
Car loans, student loans, credit card minimums
US average ~1.0-1.4%; varies by state
US average ~$1,700–$2,000/year
Leave at $0 if not applicable
Applies only when down payment < 20%. Typical: 0.5–1.0%
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Max Affordable Home Price
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Max Loan Amount
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Monthly P&I
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Total Monthly Payment
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Monthly PMI
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Down Payment %
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Front-End DTI
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Back-End DTI

How It Works

US mortgage lenders qualify borrowers using two debt-to-income (DTI) ratios. The front-end DTI caps housing costs at 28–31% of gross monthly income. The back-end DTI caps all debt including housing at 36–43% of gross income. The loan type determines the limits. PMI is added when the down payment is below 20%.
  1. Calculate maximum housing payment — Front-end DTI limit × gross monthly income gives the maximum allowable total housing cost (mortgage P&I + taxes + insurance + HOA + PMI).
  2. Apply back-end DTI — Subtract your existing monthly debts from the back-end DTI limit to get an alternative cap on housing costs. The lower of front and back constraints applies.
  3. Solve for home price — Working backwards from the maximum payment, the calculator finds the largest home price where the entire payment (including taxes, insurance, and PMI on that price) fits within both DTI limits.
  4. Add PMI if needed — For down payments below 20%, PMI is added monthly and included in your housing ratio.
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How Lenders Determine Your Home Affordability

Mortgage lenders use a set of standardised ratios to determine how much you can borrow. Understanding these ratios — and how they differ by loan type — helps you set a realistic home buying budget before you start shopping.

DTI Limits by Loan Type (2026)

Loan TypeFront-End DTI MaxBack-End DTI MaxMin Down Payment
Conventional28%36–45%3–5%
FHA31%43%3.5%
VANone41%0%
USDA29%41%0%

What's Included in Each DTI Ratio?

Front-end DTI (housing ratio): Monthly principal & interest + property taxes (monthly escrow) + homeowner's insurance (monthly escrow) + HOA fees + PMI or MIP. All housing costs as a percentage of gross monthly income.

Back-end DTI (total debt ratio): Everything in the front-end DTI, plus car loan payments, student loan payments, credit card minimum payments, personal loan payments, and any other recurring debt obligations. The back-end DTI is the binding constraint for most buyers who carry significant consumer debt.

PMI — Private Mortgage Insurance

PMI is required on conventional loans when the down payment is less than 20%. The cost varies by credit score and loan-to-value ratio but typically runs 0.5%–1.5% of the loan amount annually. On a $300,000 loan at 0.55%, PMI costs about $137.50/month. PMI is automatically removed when your loan balance reaches 80% of the original purchase price (or you can request cancellation at 80% LTV). FHA loans instead require an Upfront Mortgage Insurance Premium (UFMIP) of 1.75% and an annual MIP that typically runs the life of the loan.

State Property Tax Rates (2026)

StateEffective Rate
New Jersey~2.2%
Illinois~2.1%
Texas~1.6%
New York~1.5%
California~0.75%
Florida~0.85%
National Average~1.0%
For informational purposes only. Actual mortgage qualification depends on your credit score, employment history, assets, and individual lender guidelines. Consult a licensed mortgage lender or HUD-approved housing counselor before making home purchase decisions.

Sources: CFPB — Debt-to-Income Ratio · HUD — Mortgage Programs

Frequently Asked Questions

How much house can I afford on a $100,000 salary?
A general guideline is 28% of gross monthly income for housing costs. On a $100,000 salary ($8,333/month), that is $2,333/month for mortgage, taxes, and insurance. With a 20% down payment at 6.5% interest, this typically supports a home price of approximately $300,000–$340,000 depending on property taxes and insurance in your area.
What is the 28/36 rule for mortgages?
The 28/36 rule is a guideline for Conventional loans: spend no more than 28% of gross monthly income on housing costs (front-end DTI) and no more than 36% on all debt obligations (back-end DTI). Lenders may go higher — up to 45% back-end DTI — with compensating factors like a large down payment or strong credit score.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20%. PMI typically costs 0.5%–1.5% of the loan amount per year. It can be cancelled once your loan-to-value ratio reaches 80%. FHA loans have their own mortgage insurance premium (MIP) which usually lasts for the life of the loan.
What is the difference between front-end and back-end DTI?
Front-end DTI is your monthly housing costs divided by gross monthly income. Back-end DTI adds all other monthly debt payments to the housing costs. Lenders approve loans when both ratios fall within acceptable limits for the loan type.
What are the DTI limits for FHA vs Conventional vs VA loans?
Conventional loans allow up to 28% front-end and 36–45% back-end DTI. FHA loans allow up to 31% front-end and 43% back-end. VA loans have no front-end requirement and a 41% back-end guideline, but often approve above 41% with compensating factors. VA loans require no down payment for eligible veterans.
How does down payment size affect how much I can borrow?
A larger down payment reduces your loan amount, which lowers monthly payments and helps you stay within DTI limits. It also eliminates PMI when you put 20% or more down, saving $100–$300/month on a typical loan.
Should I include my spouse or co-borrower's income?
Yes. Enter your combined gross annual income if buying with a co-borrower. Lenders use total household income for qualifying. Include both borrowers' monthly debt obligations as well.
What closing costs should I budget for when buying a home?
Closing costs typically run 2–5% of the purchase price and include origination fees, appraisal ($500–$800), title insurance ($1,000–$2,000), prepaid property taxes and insurance escrow, and recording fees. Budget separately from your down payment.

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