Find out how much house you can afford based on your income, existing debts, and down payment — using the lender standard 28/36 rule.
The 28/36 rule is the standard lender guideline: your mortgage payment (PITI — principal, interest, taxes, insurance) should not exceed 28% of gross monthly income, and total debt payments (mortgage + all other debt) should not exceed 36%. Going above 36% DTI makes approval harder; most lenders cap at 43% DTI.
Monthly debt includes minimum credit card payments, car loans, student loans, personal loans, child support, alimony, and any other recurring debt obligations. It does not include utilities, groceries, subscriptions, or other living expenses — though those matter for your own budget planning.
Your credit score directly impacts your interest rate, which affects how much home the same payment can buy. A score of 760+ typically gets the best rates. A score below 620 may not qualify for conventional loans at all. Improving your score before buying can meaningfully increase your purchasing power.
Usually not. Lender maximums are just that — maximums. Buying at the top of your budget leaves little room for emergencies, maintenance costs, or life changes. Many financial advisors recommend targeting 20–25% of gross income for housing costs rather than the full 28%.