How Much Can I Afford?
"How much house can I buy?" is actually two questions: how much will a lender approve you for, and how much should you actually spend? This calculator answers both — and explains the difference.
You Could Afford Up To
$525,000
How We Got This Number
What That Gets You
What Lenders Actually Look At
Your home budget isn't just about your income. Lenders look at the full picture, and understanding their formula helps you know where you stand before you apply.
Debt-to-income ratio (DTI) — the number that matters most
DTI is the percentage of your gross monthly income that goes to debt payments. Lenders use two versions: the "front-end" ratio (just housing costs) and the "back-end" ratio (all debts including housing). This calculator uses back-end DTI because that's what determines your maximum. Most conventional loans cap at 43-45%, FHA allows up to 50% with compensating factors, and VA loans are more flexible. But just because a lender will approve you at 50% doesn't mean you should stretch that far. Click the DTI buttons above to see the difference between conservative, standard, and aggressive — the home price changes dramatically.
"Approved for" vs "comfortable at" — they're not the same
A lender might approve you for a $525,000 home, but that doesn't mean life at that payment will be comfortable. Your DTI doesn't account for groceries, daycare, car maintenance, saving for retirement, or having an emergency fund. A common rule of thumb: keep your total housing payment under 28% of gross income (the "front-end" ratio) for comfortable living. If you have significant other expenses, aim even lower. The calculator shows what you can qualify for — a conversation with us will help you figure out what actually fits your life.
What counts as "debt" in your DTI?
Lenders include: car loans, student loans, personal loans, credit card minimum payments, child support or alimony, and any other installment or revolving debt showing on your credit report. They don't count: utilities, groceries, car insurance, health insurance, phone bills, streaming subscriptions, or most recurring expenses. One important note: even if you pay your credit card in full each month, lenders use the minimum payment from your credit report. If your reported minimum is $150/month, that's $150 counted against your DTI.
Down payment changes everything
A bigger down payment doesn't just reduce your loan amount — it eliminates PMI (at 20%+), often gets you a better rate, and increases your equity from day one. But here's what most people don't realize: you don't need 20% down to buy a home. FHA loans go as low as 3.5%, conventional loans start at 3%, and VA loans offer 0% down for eligible veterans. The trade-off is PMI and a slightly higher payment, but for many people, getting into a home sooner beats waiting years to save 20%. Try moving the down payment slider to see how it changes your buying power.
Don't forget closing costs
This calculator shows how much home you can qualify for, but you'll also need cash for closing costs — typically 2% to 5% of the loan amount. On a $400,000 loan, that's $8,000 to $20,000. Some of this can be negotiated with the seller or rolled into certain loan programs, but it's important to plan for it. When we work with you, we'll map out the full cash-to-close picture so there are no surprises.
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This calculator is for educational and estimation purposes only. It does not constitute a loan offer, pre-approval, or commitment to lend. Brondt Cook Group | Acre Mortgage and Financial, Inc. | NMLS #13988 | Equal Housing Lender.