How Much House Can I Afford? (DTI Examples)
Updated: October 2025 • Reading time: 7–9 minutes
How much house can I afford depends on your income, monthly debts, down payment, and credit profile. Lenders use debt-to-income (DTI) ratios to cap your payment. Below we show the 28/36 targets, quick examples, and a calculator to test scenarios.
What lenders look at (DTI targets)
- Front-end DTI (housing only): mortgage payment / gross income. Target ≈ 28%.
- Back-end DTI (all debts): (mortgage + all monthly debts) / gross income. Target ≈ 36% conventional; FHA/VA may allow higher case-by-case.
- Credit & reserves: stronger credit and cash reserves may increase approval room; high debts reduce it.
Front-end vs back-end DTI (quick math)
Front-end max payment = Gross monthly income × 0.28
Back-end max payment = Gross monthly income × 0.36 − Other monthly debtsOther monthly debts include credit cards (min payments), auto/student loans, and personal loans—not utilities or groceries.
DTI examples: how much house can I afford
| Income | Monthly debts | Max P&I+T+I+PMI (≈36% cap) |
|---|---|---|
| $6,500 | $300 | $2,040 |
| $8,000 | $600 | $2,280 |
| $10,000 | $1,000 | $2,600 |
Use these as starting points. Your state’s property taxes and insurance can move the number up or down.
Price targets by DTI (rule-of-thumb)
At common down payments and rates, many buyers qualify for roughly 3×–4.5× annual income. The range tightens with higher debts or taxes.
Use the calculator to dial in your number
Open our Mortgage Calculator and select your state to preload typical property taxes. Enter price, rate, and down payment; add debts to see DTI and payment breakdown including PMI/MIP. Export amortization to CSV or share a link.
Open the Mortgage Calculator →
Ways to afford more (or pay less)
- Pay off a small loan or card to drop your back-end DTI.
- Increase down payment to lower PMI and monthly cost.
- Shop multiple lenders for a lower rate and lower points.
- Consider a slightly longer term or ARM only if risks are acceptable.
FAQs about affordability
Is 28/36 DTI a hard rule?
It’s a guideline. FHA/VA and some conventional approvals allow higher DTI depending on credit, reserves, and property type.
What about HOA fees?
HOA dues count in your housing payment for DTI purposes—include them in the calculator.
Related guides
- PMI: How It Works and When It Drops Off
- Closing Costs by State: What Buyers Actually Pay
- Mortgage Calculator (with state taxes)
For consumer guidance on mortgages and DTI, see the CFPB mortgage resources.