How Much Home Can You Afford?
Enter your income and monthly budget to discover your ideal Scottsdale 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%)
Down Payment Tips
- 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
Understanding these factors helps you prepare for the strongest possible mortgage application.
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 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.