Maximum Mortgage Calculator

Lenders typically qualify you for a mortgage where your total monthly housing payment does not exceed 28% of your gross monthly income (front-end DTI), and your total monthly debt payments — including the housing payment — do not exceed 36% to 43% of your gross monthly income (back-end DTI). Your credit score, down payment size, and loan type can also influence the maximum amount a lender will approve.

The 28/36 rule is a common guideline used by lenders. It states that your monthly mortgage payment (including principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income, and your total debt payments — including the mortgage — should not exceed 36% of your gross monthly income. Staying within these limits is considered the 'affordable' range for homebuying.

Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward paying debts, including your projected mortgage payment. Lenders use DTI to assess your ability to manage monthly payments. A DTI below 36% is generally considered comfortable, while many conventional lenders allow up to 43-50% depending on other factors like credit score and reserves.

The minimum down payment depends on the loan type. Conventional loans typically require 3–20%, FHA loans require as little as 3.5%, and VA or USDA loans may require no down payment at all. Putting down 20% or more allows you to avoid private mortgage insurance (PMI), which can significantly reduce your monthly payment and total borrowing cost.

Your credit score directly affects the interest rate lenders offer you and whether you qualify for certain loan programs. A higher score (typically 740+) usually unlocks the best rates, while scores below 620 may limit your options or result in higher rates. Even a small difference in interest rate can change your maximum mortgage amount by tens of thousands of dollars.

A general rule of thumb is that you can afford a home priced at 3 to 5 times your annual gross income, depending on your debts and down payment. For example, someone earning $85,000 per year might afford a home in the $255,000–$425,000 range. Use the calculator above with your specific income, debts, and down payment to get a precise estimate.

Beyond income and debt, home affordability is influenced by property taxes, homeowners insurance, HOA fees, your credit score, and current interest rates. Rising interest rates reduce your maximum loan amount because more of your monthly payment goes toward interest rather than principal. Local property taxes can also vary significantly and affect your total monthly housing cost.

Yes — a larger down payment directly increases your maximum home purchase price because the down payment is added on top of your maximum loan amount. It also reduces your monthly payment (lowering required income), may eliminate PMI costs, and can result in a better interest rate. Even increasing your down payment by $10,000–$20,000 can meaningfully boost the home price you can afford.