Run The Numbers
Understanding Home Affordability
Home affordability is about more than just the purchase price. Learn how lenders calculate what you can afford and how to maximize your buying power while staying comfortable with your monthly payments.
Know Your Budget
Understand exactly how much home you can afford
Get a clear picture of your buying power based on income, debts, credit score, and down payment.
Plan Your Down Payment
Determine the right down payment for your situation
From 0% down VA loans to 3% conventional options, find the right down payment strategy for your goals.
Estimate Total Costs
Budget beyond just the mortgage payment
Factor in property taxes, insurance, HOA fees, and maintenance to understand your true monthly costs.
Maximize Savings
Identify opportunities to save on your mortgage
Discover programs and strategies to lower your interest rate, reduce fees, and save thousands over time.
Improve Affordability
Learn how to qualify for more home
Understand how improving credit, reducing debt, or choosing different loan types can increase your buying power.
Get Pre-Qualified
Shop with confidence knowing your approved amount
Pre-qualification gives you negotiating power and shows sellers you're a serious, qualified buyer.
Run The Numbers
Key Affordability Factors
1. Debt-to-Income Ratio (DTI)
Lenders typically want your total monthly debts (including your new mortgage) to be no more than 43-50% of your gross monthly income. Lower DTI = more buying power.
2. Credit Score
Higher credit scores qualify for better interest rates. Even a 0.5% rate difference can save you tens of thousands over your loan term.
3. Down Payment
Larger down payments reduce your loan amount and monthly payment. However, low/no down payment options like VA and FHA loans make homeownership accessible sooner.
4. Interest Rate
Current mortgage rates significantly impact affordability. Even a 1% rate difference on a $300,000 loan can change your payment by $200/month.
Run The Numbers
Sample Affordability by Income
Approximate home prices you may afford at different income levels (assumes 43% DTI, minimal debt, good credit).
| Annual Income | Max Home Price | Monthly Payment | Down Payment (0-3%) |
|---|---|---|---|
| $60,000 | $270,000 | $1,800/mo | $0-$8,100 |
| $80,000 | $360,000 | $2,400/mo | $0-$10,800 |
| $100,000 | $450,000 | $3,000/mo | $0-$13,500 |
| $120,000 | $540,000 | $3,600/mo | $0-$16,200 |
Note: These are general estimates. Your actual affordability depends on credit score, existing debts, property taxes, insurance costs, and the specific loan program you choose. Use our calculator for personalized results.
Run The Numbers
Tips to Improve Affordability
Reduce Your Debt
Pay down credit cards, car loans, and student loans to lower your DTI and qualify for a larger mortgage.
Improve Your Credit Score
Pay bills on time, reduce credit card balances, and dispute any errors on your credit report to boost your score.
Consider Low Down Payment Programs
VA loans (0% down), FHA loans (3.5% down), and conventional 3% down options help you buy sooner with less cash upfront.
Shop for Better Rates
Compare rates from multiple lenders and consider buying points to lower your interest rate and monthly payment.
Take The Next Step
Ready to Calculate Your Home Buying Power?
Use our affordability calculator to see exactly how much home you can afford, or get pre-qualified to shop with confidence
We're Here to Help
Have Questions About Affordability?
Our mortgage experts can help you understand your options and maximize your buying power