Home Affordability Calculator

Q: Should I choose Conventional, FHA, or VA?

Conventional is best with 20%+ down or good credit. FHA is best for lower credit or 3.5% down, but MIP stays for life. VA is best for eligible veterans — no down payment, no PMI. Compare total 5-year costs with your exact numbers to find the winner.

Q: What costs are NOT included in this calculator?

This calculator covers principal, interest, property tax, insurance, PMI/MIP, and HOA. It does not include closing costs (2–5% of loan), maintenance (1–2% of home value/year), utilities, or moving expenses. Closing costs can add $8,000–$20,000+ to upfront cash needs.

Find out how much house you can afford based on your income, debts, and down payment. Compare Conventional, FHA, and VA loans side by side with 2026 rates and limits.

Find your maximum home price based on income, debts, and down payment

Annual gross income

Before taxes, all sources

Monthly debts

Car, student loans, credit cards (min payments)

Down payment

Credit score range

Affects PMI rate and loan eligibility

Mortgage rate

2026 avg: 30-yr 6.65%, 15-yr 5.9%

Loan term

Property tax rate

US avg ~1.1%. NJ: 2.2%, HI: 0.3%

Homeowners insurance (annual)

HOA (monthly)

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Try a scenario

How to Use This Calculator

How Much Home Can I Afford? tab

The default tab. Enter your annual gross income, monthly debts, down payment, and credit score range. The calculator finds your maximum home price using the 28/36 DTI rule. Expand "More options" to adjust mortgage rate, loan term, property tax rate, insurance, and HOA.

Can I Afford This Home? tab

Have a specific home in mind? Enter the home price and your financials. Get an instant verdict — Comfortable, Stretched, or Over Budget — plus the exact income you'd need and how much more down payment would bring you within safe DTI limits.

Compare Loan Types tab

See Conventional vs FHA vs VA side by side. The calculator compares monthly payments, PMI/MIP costs, funding fees, and total 5-year cost. It recommends the best option for your credit, down payment, and income.

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Every input is encoded in the URL. Click Share to send your exact scenario to a partner, lender, or real estate agent.

The Formula

Home affordability is determined by two ratios:

Debt-to-Income (DTI) Ratios:

Front-end DTI = Monthly Housing Payment ÷ Monthly Gross Income
Back-end DTI = (Housing + All Debts) ÷ Monthly Gross Income

Standard limits: 28% front-end, 36% back-end

Monthly Payment (PMT):

PMT = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]

P = loan principal, r = monthly rate, n = total payments

Your front-end DTI (housing costs only) should stay at or below 28% of gross income. The back-end DTI (housing + car payments, student loans, credit cards) should stay at or below 36%. FHA loans allow higher DTIs (up to 43–50% with compensating factors).

The calculator works backwards from these limits to find the maximum home price you can afford, accounting for property tax, insurance, PMI, and HOA.

Example

Jason & Priya — First-time buyers, Austin TX

Combined income $120K, $60K saved for down payment, $800/mo in debts (car + student loans), Good credit (710). Looking at a $420K home. Texas property tax: 1.8%, no state income tax.

How Much Home Can I Afford? tab

Maximum home price$396,200

Monthly PITI$2,800

Front-end DTI28.0%

Back-end DTI36.0%

Their budget is tighter than expected — the $420K home puts them at ~30% front-end DTI. The calculator shows they'd be comfortable at ~$396K with 28% DTI.

Compare Loan Types tab

Conventional (15% down)$2,870/mo + PMI

FHA (3.5% down)$3,120/mo + MIP

WinnerConventional

With $60K down (15%), conventional wins despite PMI — it cancels at 78% LTV, while FHA MIP stays for the life of the loan.

2026 Mortgage Rates & Limits

30-year fixed rate~6.65%

15-year fixed rate~5.90%

Conforming loan limit$832,750

FHA floor limit$541,287

FHA ceiling (high-cost)$1,249,125

FHA MIP (upfront)1.75%

FHA MIP (annual)0.55%

Conventional PMI range0.3–1.5%

PMI cancellationAuto at 78% LTV

VA funding fee range1.25–3.3%

Median US home price~$398,400

Median household income~$85,000

Sources: Freddie Mac PMMS, FHFA, HUD, VA, NAR, Census Bureau — Q1 2026 data

FAQ

What is the 28/36 rule for home affordability? ▼

The 28/36 rule is the standard guideline lenders use. Your monthly housing costs (mortgage, tax, insurance, PMI, HOA) should not exceed 28% of gross monthly income (front-end DTI). Total monthly debts including housing should not exceed 36% (back-end DTI). Some loan programs allow higher ratios — FHA goes up to 43–50% with compensating factors like cash reserves or minimal debt.

How much house can I afford on a $85,000 salary? ▼

With $85K income, $500/mo in debts, $40K down, and a 6.65% rate, you can typically afford a home around $340,000–$380,000 depending on property tax and insurance rates. Use the calculator with your exact numbers — location matters because property tax rates vary from 0.3% (Hawaii) to 2.2% (New Jersey).

What is PMI and when can I remove it? ▼

Private Mortgage Insurance (PMI) is required on conventional loans with less than 20% down payment. It costs 0.3–1.5% of the loan amount per year, depending on your credit score and loan-to-value ratio. PMI is automatically canceled when your LTV reaches 78% of the original value. You can request removal at 80%. FHA loans have MIP (Mortgage Insurance Premium) instead, which stays for the life of the loan if your initial LTV exceeds 90%.

Should I choose Conventional, FHA, or VA? ▼

Conventional is best if you have 20%+ down (no PMI) or good credit with 5%+ down (PMI cancels later). FHA is best for lower credit scores or smaller down payments (3.5% min), but MIP stays for life. VA is best for eligible veterans — no down payment, no PMI, and competitive rates. Use the Compare Loan Types tab with your exact numbers to see which saves the most over 5 years.

What costs are NOT included in this calculator? ▼

This calculator covers the major recurring costs: principal, interest, property tax, homeowners insurance, PMI/MIP, and HOA. It does not include closing costs (typically 2–5% of the loan), maintenance (budget 1–2% of home value/year), utilities, or moving expenses. Closing costs are one-time but can add $8,000–$20,000+ to your upfront cash needs.

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