Home Affordability Calculator
Frequently Asked Questions
How much house can I afford on a $100,000 salary?
On a $100,000 salary ($8,333 gross monthly), the 28% rule allows $2,333 for monthly housing costs. At 7% interest over 30 years with a 10% down payment and average taxes and insurance, that typically supports a purchase price of $280,000 to $310,000 depending on your location and existing monthly debts.
What is the 28/36 rule in mortgage lending?
The 28/36 rule states that monthly housing costs should not exceed 28% of gross monthly income, and all monthly debt payments combined should not exceed 36%. Lenders use these benchmarks to assess affordability. FHA loans allow slightly higher ratios — up to 31% front-end and 43% back-end for qualified borrowers.
How much down payment do I need to buy a house?
The minimum down payment depends on loan type: 3% for conventional loans for first-time buyers, 3.5% for FHA loans, and 0% for VA and USDA loans if you qualify. Putting down 20% or more eliminates private mortgage insurance, reducing your monthly payment and saving thousands over the full life of the loan.
Does this calculator include property taxes and homeowners insurance?
Yes. The home affordability calculator includes fields for your estimated property tax rate and monthly homeowners insurance cost. These are added to your principal and interest to calculate your true monthly PITI payment — giving you a realistic figure that matches what your lender will actually use to qualify your application.
What credit score do I need to qualify for a mortgage?
Most conventional loans require a minimum 620 credit score, while FHA loans accept scores as low as 580 with 3.5% down. Higher scores earn lower interest rates. A 740 or above typically qualifies you for the best available rates, potentially saving hundreds of dollars per month compared to a borderline 620 score.
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