Your Financial Profile
Loan & Housing Costs
| Maximum Front-End Ratio (housing cost / income) | — | Maximum Back-End Ratio (total debt / income) | — |
| Loan Amount | $— | Down Payment Amount | $— |
Monthly Budget & Loan Terms
Monthly Housing Expenses
📘 Understanding House Affordability: DTI, Front-End & Back-End Ratios
Lenders use debt-to-income (DTI) ratios to determine how much mortgage you qualify for. The front-end ratio is the percentage of gross monthly income spent on housing costs (PITI + HOA). The back-end ratio includes housing + all recurring debts (car loans, student loans, credit cards).
✅ Conventional 28/36 Rule
Max 28% for housing, 36% for total debt. FHA loans allow 31/43. VA loans focus on 41% back-end. Use our calculator to estimate a safe home price.
🧮 How to Use the Affordability Calculator
Income Method: Enter annual income, monthly debts, down payment, and local tax/insurance rates. Select your DTI rule (Conventional, FHA, VA, or custom). The calculator finds the max home price based on allowable monthly payment.
Budget Method: If you know how much monthly payment fits your lifestyle, enter your target budget, down payment, and loan terms to see the max home price.
⚠️ Important Considerations
• Down payment below 20% may require PMI (private mortgage insurance) — not included; ask your lender.
• Property taxes, insurance, and HOA vary by location — update sliders accordingly.
• Higher credit scores improve interest rates, increasing affordability.
• This is an estimate — pre-approval from a lender gives exact numbers.