How to Calculate What House You Can Afford

Buying a house is one of the biggest financial decisions you'll ever make. Knowing how much you can realistically afford is the first and most important step.

The Two Main Ways Lenders Evaluate You

1. Front-End Ratio (Housing Ratio): How much of your income goes toward housing costs (usually 28–35%)
2. Back-End Ratio (Total Debt Ratio): How much of your income goes toward all debts (usually 36–45%)

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→ Use the "How Much House Can I Afford?" Calculator

Realistic Example

With $6,000 monthly income and $800 in existing debt:

• Conservative estimate: ~$380,000 – $430,000
• Aggressive estimate: ~$480,000 – $530,000

Key Factors That Affect How Much You Can Borrow

• Your credit score
• Down payment size
• Current interest rates
• Property taxes and insurance in your area
• Debt-to-income ratio