Home Affordability Calculator

A general rule is 2.5 to 3 times your annual gross income. If you earn $100,000/year, aim for a $250,000-$300,000 home. The 28/36 rule states: spend no more than 28% of gross income on housing and 36% on total debt. Use this calculator for a personalized estimate based on your specific finances.

Monthly housing costs include: mortgage principal and interest, property taxes, homeowners insurance, PMI (if down payment < 20%), and HOA fees (if applicable). Do not forget to budget for maintenance (1-3% of home value annually) and utilities.

Minimum down payments: Conventional loans 3-5%, FHA loans 3.5%, VA loans 0%, USDA loans 0%. However, 20% down avoids PMI and gets better rates. With less than 20%, you will pay PMI (0.3-1.5% of loan annually) until you reach 20% equity.

Minimum scores: FHA loans 580 (500 with 10% down), Conventional loans 620, VA loans 620. For the best rates, aim for 740 or higher. A higher score can save tens of thousands over the life of the loan through lower interest rates.

Yes—always get pre-approved first. Pre-approval shows sellers you are serious and can afford their home. It also helps you understand your budget and prevents disappointment. Pre-approval letters are typically valid for 60-90 days. Shop multiple lenders to compare rates and terms.