House Affordability Calculator
About Our Smart House Affordability Calculator
Our smart calculator provides instant results and leverages AI to offer personalized insights.
Stop Guessing, Start Planning
Buying a home is emotional, but getting a loan is purely mathematical. Lenders use specific Debt-to-Income (DTI) ratios to decide your fate. Our AI Affordability Calculator runs these same numbers to give you a realistic budget.
Why This Tool is Accurate:
- Lender Logic: Choose between Conventional (28/36), FHA, or VA loan rules.
- Full PITI: We factor in Property Taxes, Insurance, and HOA fees, not just the mortgage.
- Debt Check: See how your student loans or car payments reduce your buying power.
What Determines "How Much House I Can Afford"?
Many buyers think affordability is just about having enough cash for a down payment. However, to a lender, affordability is defined by your Debt-to-Income (DTI) Ratio.
Lenders look at your gross monthly income and compare it to your total monthly debts. If your new house payment pushes your total debt too high, your loan will be denied. This calculator works backward from these lender limits to find your maximum price.
What Do the "Ratio Modes" Mean?
In the calculator settings, you can select different loan types. Here is what they mean for your budget:
| Loan Type | The Rule | What It Means |
|---|---|---|
| Conventional | 28/36 Rule | Strict. Only 28% of income can go to housing, and 36% to total debt. Best for those with high credit and low debt. |
| FHA Loan | 31/43 Rule | Lenient. Allows up to 43% of income for total debt. Great for first-time buyers with some existing debt. |
| VA Loan | 41% Back-End | Flexible. For veterans. Focuses mainly on the total debt ratio (41%) and residual income. |
What is PITI? (It's Not Just a Mortgage)
When banks calculate affordability, they don't just look at the loan principal and interest. They look at PITI.
P
Principal
Repaying the loan balance.
I
Interest
The cost of borrowing money.
T
Taxes
Property taxes (can be $500+/mo).
I
Insurance
Homeowners & Mortgage Insurance (PMI).
How to Afford More House?
If the calculator result is lower than home prices in your area, here are three ways to boost your budget:
Pay Down Monthly Debt
Eliminating a $400 car payment can increase your home buying budget by nearly $50,000.
Increase Down Payment
Putting 20% down avoids PMI (Private Mortgage Insurance), lowering your monthly PITI and allowing you to borrow more.
Shop for Lower Taxes
Buying in a town with lower property tax rates directly increases the amount you can spend on the house itself.
Financial Disclaimer
The House Affordability Calculator provides estimates based on standard DTI guidelines (28/36, FHA, VA). Lenders consider additional factors such as credit score, employment history, and cash reserves. This result is not a loan pre-approval. Interest rates and tax amounts are user-generated estimates.
Disclaimer & Usage Policy
1. For Reference Only: The calculations, results, and AI-generated insights provided by this tool are for informational and educational purposes only. They represent theoretical outcomes based on user inputs and general assumptions. They do not constitute actionable professional advice, medical diagnosis, or specific financial recommendations.
2. Consult a Professional: Real-world scenarios are complex and subject to changing laws, regulations, and scientific standards. This tool cannot account for your unique individual circumstances. We strongly recommend consulting with a qualified professional (such as a Financial Advisor, CPA, Doctor, or Legal Counsel) before making any actual decisions based on this information.
3. No Liability: By using this tool, you acknowledge that This Website and its affiliates are not liable for any discrepancies, errors, or losses (financial, health-related, or otherwise) arising from the use of or reliance on these tools. You assume full responsibility for your own choices and actions.