What is debt-to-income ratio (DTI)?

DTI is the percentage of your gross monthly income that goes toward debt payments. Lenders typically prefer a DTI of 36% or less, though some allow up to 43% or higher with compensating factors.

How much should I put down on a house?

A 20% down payment avoids PMI and gives the best rates. However, many programs allow 3-5% down. More down payment means lower monthly payments and less interest overall.

What debts are included in DTI?

DTI includes car loans, student loans, credit card minimum payments, personal loans, and the proposed housing payment. It typically does not include utilities, insurance premiums, or subscriptions.

Can I afford more than the calculator suggests?

While lenders may approve more, the calculator uses conservative estimates for financial health. Spending less than the maximum gives you a safety buffer for emergencies and lifestyle expenses.

What is debt-to-income ratio (DTI)?

DTI is the percentage of your gross monthly income that goes toward debt payments. Lenders typically prefer a DTI of 36% or less, though some allow up to 43% or higher with compensating factors.

How much should I put down on a house?

A 20% down payment avoids PMI and gives the best rates. However, many programs allow 3-5% down. More down payment means lower monthly payments and less interest overall.

What debts are included in DTI?

DTI includes car loans, student loans, credit card minimum payments, personal loans, and the proposed housing payment. It typically does not include utilities, insurance premiums, or subscriptions.

Can I afford more than the calculator suggests?

While lenders may approve more, the calculator uses conservative estimates for financial health. Spending less than the maximum gives you a safety buffer for emergencies and lifestyle expenses.

Educational Tool — Estimates for educational purposes only. Not financial advice.Disclaimer

Warning

With less than 5% down payment, you'll face higher interest rates, larger PMI premiums, and limited lender options. Many programs require at least 3-3.5% down.

Knowing how much house you can afford prevents overextending your finances. This calculator uses your income, existing debts, and down payment to estimate your maximum affordable home price while keeping your debt-to-income ratio in check.

Home Affordability Calculator

Find out how much house you can afford based on your income, debts, down payment, and interest rates.

February 2026 (current rate data)

Annual Income

Monthly Debts

Car payments, student loans, credit cards, etc.

Down Payment

Interest Rate

Loan Term

Max DTI Ratio

Maximum debt-to-income ratio

Your Results

Max Home Price

$310,000.00

Max Loan Amount

$260,000.00

Estimated Monthly Payment

$2,043.79

Monthly Income

$7,083.33

Current DTI

7.06%

Down Payment %

16.13%

Visualization

Wally's Analysis

AI-powered interpretation of your results

AI Summary

Key Insights

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AI Disclosure

Wally's Analysis uses GPT-4o-mini for educational interpretations. AI responses are not personalized financial advice and may be inaccurate. All core calculations are deterministic — AI only interprets results.AI Transparency →

Accuracy Commitment

Industry-standard formulas vetted against IRS, SSA, BLS, CFPB. Client-side calculations. Regularly updated.

This calculator provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making financial decisions.

Updated: February 2026 (current rate data) · Methodology

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