What Can I Afford?
Your real home buying power based on income, debts, and down payment -- with full PITI breakdown and closing cost estimates.
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The DTI Rule
Lenders use your Debt-to-Income (DTI) ratio to determine how much you can borrow. This is the percentage of your gross monthly income that goes toward debt payments.
DTI = (Monthly Debts + Housing Payment) / Monthly Income- 36% or below: Excellent. Most lenders love this range.
- 37-43%: Acceptable for most loan programs.
- Above 43%: Difficult to qualify for conventional loans.
How Credit Score Affects Buying Power
| Score | Rate Impact | Buying Power |
|---|---|---|
| 740+ | Best rates | Maximum |
| 680-739 | +0.25-0.50% | Strong |
| 620-679 | +0.50-1.00% | Moderate |
| Below 620 | +1.00-2.00% | Limited |
This calculator provides estimates for educational purposes only. Actual affordability depends on your complete financial profile, current interest rates, property taxes in your area, and lender requirements. This is not a loan commitment or pre-approval. Property tax rates used are state averages and may differ from your specific location. Consult a licensed mortgage professional for personalized guidance.