Home affordability calculator
Find the most you can pay for a home from your income, debts and down payment, with taxes, insurance, HOA and PMI counted.
Income and debts
Use gross figures, before taxes, for everyone on the mortgage.
Car loans, student loans and minimum card payments. Leave out rent and utilities.
Loan
Ownership costs
Percent of the home value per year.
Debt-to-income limit
Housing cost as a share of gross income, then all debt including housing.
Warren provides educational information, not individualized financial, tax or legal advice. Read our disclaimers.
What lenders look at
- Debt-to-income ratio
- Lenders compare your monthly debt payments with your gross income. Conventional loans usually want total debt under 36% to 43%, and FHA loans allow a little more with strong credit and reserves.
- Credit score
- Your score sets the rate you are offered, and the rate sets how much house a payment buys. Moving from 660 to 740 can cut the rate by half a point or more, which is worth tens of thousands over a 30-year loan.
- Down payment and reserves
- A bigger down payment lowers the loan and removes PMI at 20%. Lenders also like to see two to six months of payments left in savings after closing.
- Stable income
- Two years of steady employment or self-employment history is the usual bar. Bonuses, commissions and side income count only when they have a track record.
Frequently asked questions
- What are front-end and back-end ratios?
- The front-end ratio is your full monthly housing cost (mortgage payment, property tax, insurance, HOA and PMI) divided by gross monthly income. The back-end ratio adds your other monthly debt payments. Lenders cap both, and the tighter of the two limits sets your maximum price.
- Why is this number lower than my pre-approval?
- Pre-approvals often use the loosest ratios a program allows and may leave out HOA dues or use a low estimate for taxes and insurance. This calculator uses the full housing cost. Many buyers choose to borrow less than the maximum so there is room for maintenance, savings and the unexpected.
- What is PMI and how do I avoid it?
- Private mortgage insurance protects the lender when you put down less than 20% on a conventional loan. It typically costs 0.3% to 1.5% of the loan per year and is included here at 0.6%. Put down 20% or more to avoid it, or ask to have it removed once your equity reaches 20%.
- How much should I put down?
- A larger down payment lowers the loan, the monthly payment and the price you need to qualify for, and it removes PMI at 20%. Keep enough cash aside for closing costs (usually 2% to 5% of the price), moving and an emergency fund. Draining savings to hit 20% is rarely worth it.
- What costs are not included here?
- Closing costs, maintenance and repairs (budget about 1% of the home value per year), utilities, and any mortgage points or lender fees. The calculator also assumes a fixed-rate loan and that your income and debts stay the same.
Ready to plan for a home?
Warren AI can map a down payment timeline, show how paying off debt changes your budget and keep the rest of your finances on track while you shop.