House Affordability Calculator

The 28/36 rule, in one paragraph

Lenders generally cap the front-end ratio (housing payment / gross monthly income) at 28%, and the back-end ratio (all monthly debt obligations / gross monthly income) at 36%. The first protects against being house-poor; the second prevents your total debt load from getting out of hand. Whichever cap binds first is your real ceiling.

Why we include taxes, insurance & HOA

The “housing payment” in 28/36 isn't just principal and interest — it's the full PITI (Principal, Interest, Taxes, Insurance) plus HOA. A $300/mo HOA at a 6.75% rate is the equivalent of $46,000 of additional home price, and most affordability calculators silently ignore it. Ours doesn't.

Why your bank may approve more

Modern underwriting often qualifies borrowers up to 43% back-end DTI, especially with compensating factors (high credit, low LTV). That doesn't mean it's a smart idea to take it. The 28/36 ceiling gives you breathing room for emergencies, savings, and life. Anything above 36% is the lender prioritizing their fees over your sleep.