What DTI ratio do I need to qualify for a mortgage?

Conventional loans typically require a back-end DTI of 36–45%. FHA loans allow up to 43–50% with compensating factors. VA loans use a single DTI guideline of around 41%. A lower DTI improves your approval odds and may qualify you for better interest rates.

Mortgage Affordability Calculator – How Much House Can I Afford?

Income & Debts

Annual Income $90,000

Monthly Debts $500

Down Payment $40,000

Interest Rate 6.50%

Loan Term 30 yrs

yrs

Additional Costs

Annual Property Tax $4,000

Annual Home Insurance $1,500

Monthly HOA Fee $0

Loan Program & DTI Limits

Loan Program

Front-end DTI Limit 31%

Back-end DTI Limit 43%

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28/36 Rule

Conventional guideline: housing ≤28%, total debt ≤36% of gross income.

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Reduce Debts First

Paying off a $400/mo car loan can increase buying power by $60k+.

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FHA = More Flexible

FHA allows up to 31/43 DTI with as little as 3.5% down.

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Get Pre-Approved

A pre-approval letter shows sellers you’re a serious buyer.

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Ready to calculate

Enter your income and financial details on the left, then click Calculate Affordability to see your home buying budget with full DTI breakdown.

Your Affordability Results

Maximum Home Price You Can Afford

Based on your income and DTI limits

Front-end DTI

—

Housing / income

Back-end DTI

—

All debts / income

Affordability: —

Loan Amount

—

After down payment

Down Payment

—

Cash needed at closing

Monthly Payment

—

Full PITI + HOA

Monthly P&I

—

Principal & interest only

Monthly Income

—

Gross monthly

PMI Estimated

—

If LTV > 80%

DTI Breakdown

Front-end DTI (Housing) —

Back-end DTI (All Debts) —

Monthly Payment Breakdown

Disclaimer: This calculator provides estimates for educational purposes only. Results are based on standard DTI guidelines and do not constitute a loan offer or financial advice. Actual approval depends on credit score, employment history, lender requirements, and loan program guidelines. Consult a licensed mortgage professional before making any decisions.

The mortgage affordability calculator answers the first question every home buyer asks: how much house can I afford? Your budget isn’t just about income — it depends on your monthly debts, down payment, interest rate, property taxes, insurance, and the DTI limits your lender uses. This free tool calculates your maximum home price using the same debt-to-income framework that Conventional, FHA, and VA lenders apply during underwriting. Whether you’re a first-time buyer in California, a veteran using VA benefits in Texas, or a repeat buyer comparing loan programs in Florida, this calculator gives you a realistic number before you start house hunting.

28%

Max front-end DTI for Conventional loans

43%

Max back-end DTI for FHA loans, April 2026

3.5%

Minimum down payment for FHA loans

Down payment required for VA loans

What Is a Mortgage Affordability Calculator?

A mortgage affordability calculator estimates the maximum home price you can qualify for based on your financial profile. Unlike a basic mortgage payment calculator (which tells you your monthly cost for a specific loan), an affordability calculator works backwards — it starts with your income and debts and figures out how much you can borrow.

Lenders evaluate your affordability using the debt-to-income (DTI) ratio: the percentage of your gross monthly income that goes toward debt payments. There are two types every buyer needs to understand:

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Front-End DTI (Housing Ratio)

The percentage of your gross monthly income going toward housing costs only — principal, interest, taxes, insurance (PITI), and HOA fees. Most lenders prefer this below 28–31%.

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Back-End DTI (Total Debt Ratio)

The percentage of your income going toward ALL monthly debt payments — housing plus car loans, student loans, credit cards, personal loans, and any other obligations. Usually must be below 36–43%.

How this calculator works: It calculates the maximum monthly housing payment allowed by both your front-end and back-end DTI limits, takes the lower of the two, subtracts your taxes, insurance, HOA, and estimated PMI, then reverse-engineers the loan amount. Add your down payment — that’s your maximum home price.

DTI Limits by Loan Program

Different loan programs have different DTI requirements. Use the loan program selector in the calculator above to automatically apply the correct limits:

Loan Program	Front-End DTI	Back-End DTI	Min Down Payment	PMI Required?
Conventional	28%	36%	3–5%	Yes, if <20% down
FHA	31%	43%	3.5%	Yes (entire loan)
VA	41%	41%	0%	No (funding fee applies)
USDA	29%	41%	0%	Yes (guarantee fee)
Jumbo	28%	36–43%	10–20%	Sometimes

Note on VA loans: VA uses a single back-end DTI guideline (41%) without a separate front-end limit. This calculator sets both to 41% when VA is selected, which is the standard practice.

How to Use This Affordability Calculator

Enter Your Income and Monthly Debts

Use your gross annual income (before taxes). For debts, include all minimum monthly payments — car loans, student loans, credit cards, personal loans. Do NOT include utilities or groceries.

Set Your Down Payment and Rate

Enter how much you plan to put down. If you have less than 20% down, PMI will be factored in automatically. Use current mortgage rates — check with lenders for exact quotes.

Add Taxes, Insurance, and HOA

These are real costs that count toward your front-end DTI. Typical property tax is 1–2% of home value annually. Insurance averages $1,200–$2,000/year. HOA varies widely.

Select Your Loan Program

Choose Conventional, FHA, VA, or Custom. The calculator automatically updates the DTI limits to match lender guidelines for that program type.

Review Your Budget and Get Pre-Approved

Use the result as your target price range. Then get a formal pre-approval from a licensed lender before making an offer — it strengthens your position significantly.

Tips to Increase Your Home Buying Budget

If your affordable home price is lower than you hoped, here are the most effective ways to increase it:

Pay off or reduce monthly debts. Eliminating a $400/month car payment can increase buying power by $50,000–$70,000 depending on your rate.
Increase your down payment. More down means a smaller loan, lower monthly payment, and potentially no PMI.
Improve your credit score. A score above 740 typically qualifies for the best rates — even a 0.5% lower rate adds significant buying power.
Choose a longer loan term. A 30-year term has lower payments than 15-year, allowing you to qualify for a larger loan.
Consider FHA if you have higher debt. FHA allows back-end DTI up to 43% vs 36% for conventional, which can meaningfully increase your budget.
Shop multiple lenders. Different lenders apply DTI guidelines differently — some allow exceptions for strong compensating factors like large reserves.

Frequently Asked Questions About Mortgage Affordability

How much house can I afford on my salary?

Your affordable home price depends on your monthly income, existing debts, down payment, and interest rate. Most lenders use the DTI ratio — allowing up to 28–31% of gross income for housing and 36–43% for all debts combined. Use this calculator to enter your exact numbers and get a personalized estimate in seconds.

What is the 28/36 rule in mortgage lending?

The 28/36 rule is the standard Conventional loan guideline. It suggests spending no more than 28% of gross monthly income on housing costs (front-end DTI) and no more than 36% on all debt payments combined (back-end DTI). FHA loans are more flexible at 31/43, and VA uses a single 41% guideline. Use the loan program selector above to apply the correct limits automatically.

How much house can I afford with $100k income?

With $100k annual income and minimal debts, most buyers qualify for a home in the $350,000–$450,000 range at current rates, depending on down payment, taxes, and insurance. Higher existing debts (car loans, student loans) will reduce this range significantly. Enter your exact numbers in the calculator above for a precise estimate.

Does this affordability calculator include PMI?

Yes. If your estimated down payment results in an LTV above 80%, this calculator automatically factors in PMI at approximately 0.7% annually — the typical rate for borrowers with good credit. PMI is included in the front-end DTI calculation, which slightly reduces your maximum home price. This makes the estimate more realistic than calculators that ignore PMI.

What is front-end vs back-end DTI?

Front-end DTI is the percentage of your gross monthly income going toward housing costs only — principal, interest, taxes, insurance, and HOA. Back-end DTI includes housing costs plus all other monthly debts (car payments, student loans, credit cards, etc.). Lenders evaluate both. Your affordable home price is constrained by whichever limit is more restrictive — this calculator automatically uses the binding constraint.

How does a larger down payment affect affordability?

A larger down payment increases affordability in three ways: it directly adds to your buying power (every extra dollar of down payment adds a dollar to the home price you can afford), it reduces the loan amount and monthly payment, and reaching 20% down eliminates PMI entirely — which frees up money for a larger mortgage. Even going from 10% to 20% down can increase your buying power by $30,000–$50,000.

Is this the exact amount a lender will approve?

No — this tool gives a strong working estimate based on standard DTI guidelines. Actual approval depends on your credit score, employment history, asset reserves, loan program, and individual lender overlays. Some lenders allow exceptions for borrowers with strong compensating factors. Use this calculator for planning and budgeting, then get a formal pre-approval letter from a licensed lender before making any offer.

What debts should I include in the monthly debts field?

Include all minimum monthly debt payments that appear on your credit report: car loans, student loans (even if deferred), credit card minimum payments, personal loans, child support, alimony, and any other installment or revolving debt. Do NOT include utilities, phone bills, groceries, subscriptions, or insurance premiums — lenders only count credit obligations in the DTI calculation.

👨‍💻 About the Creator

I’m Sanjeev Kumar, a self-taught developer, SEO strategist, and digital creator from India.
As the Founder of OurNetHelps, I’ve built over 50+ online tools focused on simplicity, privacy, and performance.
With 10+ years of experience in SEO, automation, and web performance, I develop tools that help people work smarter and faster.

✅ Personally developed, tested, and maintained by me.

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🕒 Last Updated: April 13, 2026 • Version 2.0
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