How Much Home Can You Afford?
Enter your desired monthly payment and income to discover your ideal home price range based on industry-standard affordability guidelines.
Affordability Calculator
Find out how much home you can afford
Maximum Affordable Home Price
$349,291
Based on $3,000/month payment
Total monthly payment including taxes and insurance
Your total household income before taxes
Arizona average: 1.2%
Affordability Analysis
Down Payment Needed
$69,858
Loan Amount
$279,433
Monthly Income
$8,333
Monthly Payment
$3,000
The 28/36 Rule
Lenders typically recommend that your housing costs don't exceed 28% of your gross monthly income, and total debt payments stay under 36%.
Example:
$100,000 annual income = $8,333/month
Max housing: $2,333 (28%)
Save for Down Payment
- 20% down avoids PMI and lowers monthly payment
- FHA loans allow as little as 3.5% down
- First-time buyer programs may offer assistance
Factors That Affect Affordability
Credit Score
Your credit score significantly impacts your interest rate. Higher scores (740+) qualify for the best rates, potentially saving thousands over the life of the loan.
• 760+: Best rates available
• 700-759: Good rates
• 620-699: Higher rates
• Below 620: May need FHA or special programs
Debt-to-Income Ratio
Lenders evaluate all your monthly debt payments (credit cards, car loans, student loans) against your income. Lower DTI means you can afford more house.
• Below 36%: Excellent
• 36-43%: Acceptable for most loans
• 43-50%: May qualify for FHA
• Above 50%: Difficult to qualify
Employment History
Lenders prefer at least 2 years of stable employment in the same field. Self-employed buyers may need to provide additional documentation like tax returns and profit/loss statements.
Cash Reserves
Beyond your down payment, having 3-6 months of mortgage payments in savings shows financial stability and may help you qualify for better loan terms.