Your Numbers
Use gross income before taxes and monthly debt payments that a lender would count, such as auto loans, student loans, card minimums, personal loans, alimony, or other required payments.
Income and debt
Mortgage and ownership costs
DTI thresholds
Estimated Affordability Range
Plain-English Recommendation
Scenario Details
| Metric | Conservative | Comfortable | Stretch |
|---|
Cash-To-Close Pressure
- The cash number assumes your entered cash must cover both down payment and closing reserves.
- Higher taxes, insurance, HOA dues, or mortgage insurance can lower the price even when the lender rate is unchanged.
- Affordability is not the same as approval. A lender may require reserves, credit score minimums, documentation, or stricter overlays.
Methodology
Each scenario starts with the lower of two limits: front-end DTI times gross monthly income, or back-end DTI times gross monthly income minus existing monthly debts.
The calculator then back-solves purchase price. At each possible price it reserves closing costs, uses remaining cash for down payment, checks the minimum down payment, estimates loan amount, principal and interest, property taxes, homeowners insurance, HOA dues, and mortgage insurance when LTV is above 80%.
Conservative is meant to leave more room for maintenance and life changes. Comfortable uses the middle thresholds you entered. Stretch shows the higher-payment scenario so you can see the tradeoff before treating it as a target.
Important caveats
- Underwriting can treat bonus, commission, overtime, self-employment, rental, and part-time income differently from the way you budget it.
- Local property taxes and insurance can vary sharply by county, insurer, flood/fire risk, and property type.
- Lender overlays, credit score, reserves, condo rules, loan program limits, and appraisal issues can reduce approval below a simple DTI estimate.
- A bigger approval can still be a bad budget. Keep room for repairs, moving costs, furnishings, childcare, medical costs, and emergency savings.
Related calculators
Frequently asked questions
What is a home affordability range?
A range shows conservative, comfortable, and stretch purchase prices rather than one maximum number. That makes it easier to separate a durable budget from a high-DTI approval scenario.
Should I use front-end or back-end DTI?
Use both. Front-end DTI controls housing costs. Back-end DTI controls housing plus existing debts. The tighter one sets the limit.
Does cash available include closing costs?
Yes. Enter the cash you can use for the purchase. The calculator reserves closing costs first, then uses the rest for down payment.
Is the stretch range the price a lender will approve?
No. It is only a scenario based on your inputs. Real approval depends on underwriting, documentation, credit, reserves, the property, and lender overlays.