Home affordability calculator

How Much House Can I Be Approved For?

Lenders start with your debt-to-income ratio. Enter your income and the monthly payments on your credit report to estimate your house payment budget and a Hampton Roads home price that fits it.

Income and debts

Gross monthly income ($ before taxes)Debt-to-income limit (40%)Many lenders use about 35–40%.Car payments ($ per month)Credit card minimum payments ($ per month)Student loans ($ per month)Other debts ($ per month)Personal loans, other mortgages, child support.

Loan and home costs

Down payment (%)VA can be 0%, FHA often 3.5%.Interest rate (%)

Loan term

Property tax rate (% per year)Typically about 1–1.2% per year.Homeowners insurance ($ per year)HOA dues ($ per month)Mortgage insurance rate (% per year, if under 20% down)

Monthly house payment budget

$1,650

Gross monthly income$6,000
× 40% debt-to-income limit$2,400
− Monthly debt payments− $750
= House payment budget$1,650

Estimated home price

$210,816

Loan amount about $200,275

Estimate only, using gross income and common debt-to-income guidelines. The budget covers principal, interest, taxes, insurance, mortgage insurance and HOA dues. A lender's pre-approval is the number that counts.

Learn more

How the math works

Read how much mortgage you'll be approved for for a step-by-step debt-to-income example, then see your full payment breakdown in the mortgage calculator. For the comfort side of the decision, read how much house you can afford in Hampton Roads, compare FHA, VA and conventional loans, or see how I work as your Hampton Roads buyer's agent.

FAQ

Home Affordability FAQs

What debt-to-income ratio do lenders use?

Many lenders look for a total debt-to-income ratio around 35% to 40%, and some loan programs allow more for buyers with strong credit or savings. Your lender will confirm the limit for your loan.

Should I use gross or take-home income?

Lenders generally use gross monthly income, which is what you earn before taxes and deductions. That's what this calculator uses.

Which monthly payments should I include?

Include payments that show on your credit report: car loans, minimum credit card payments, student loans, personal loans and other mortgages, plus child support or alimony you pay. Leave out utilities, groceries and phone bills.

Is this my actual approval amount?

No. It's an estimate based on common guidelines. A lender's pre-approval, based on your credit, income and the loan program, is the number that counts when you make an offer.

Get pre-approved

Turn this estimate into a real number.

I'll connect you with a trusted local lender who can review your debts and income and give you a real pre-approval.