Home Affordability Calculator

Figuring out how much home you can comfortably afford shouldn’t be a guessing game. Our Home Affordability Calculator translates your income, debts, down payment, and interest rate into a clear price range—so you can shop with confidence. Adjust the monthly payment slider to see how changing your budget affects your debt-to-income ratio and comfort level, and fine-tune the inputs to match your situation. It’s a quick, transparent way to understand your buying power before you take the next step toward building your new home.

See what you can afford to fit within your budget

How to Use the Affordability Calculator

In the tool above, enter a few details to estimate the maximum home price that fits your budget.

Inputs

Annual household income – Your total gross income before taxes.
Monthly debts – Recurring obligations like credit cards, auto or student loans, personal loans, alimony/child support.
Cash down payment – Dollars you plan to put down at closing.
Mortgage loan type – 30-year or 15-year fixed (shorter terms mean higher payments but less interest overall).
Interest rate – Use a current quote or today’s average.
Property taxes – Estimated by local rate.
Homeowners insurance – Often ~0.35% - 1% of home value per year.
HOA dues (if any) – Monthly fee for community services / amenities.

As you edit these, the monthly payment slider updates your Debt-to-Income (DTI) % and the “You can afford a home up to” number in real time. The color bar shows:

Green (Affordable): ~0–36% DTI
Yellow (Stretch): ~37–43% DTI
Red (Risky): ~44–50% DTI and likely PMI

Tip: Don’t anchor on the absolute maximum. Aim to stay in the comfortable (green) range so you still have room for savings, emergencies, and the fun parts of life.

What Affects Home Affordability

Income & Expenses

Income sets the ceiling, but spending habits determine how comfortable that ceiling feels. Fixed bills (debts, childcare, subscriptions) reduce what you can safely allocate to housing.

Credit Score

Higher scores usually unlock lower rates—which reduces your monthly payment and increases the price you can afford.

Disputing an error can take 30+ days to post.
Late-payment recovery can take longer, and collections often take 60–90 days after resolution to reflect.
As a rule of thumb: ~640+ for many single-family/condo conventional loans; ~660+ for some multifamily loans (programs vary).

Debt-to-Income (DTI) ratio

DTI compares (housing + monthly debts) to monthly income. Common guidelines:

Housing target (front-end DTI): about 28% or less
Total debts (back-end DTI): about 36% or less

These are guidelines—not hard stops—and lenders may allow higher with strong compensating factors.

Down payment

More down lowers your loan amount, can help you avoid PMI (typically required when down < 20%), and may earn better pricing. Typical minimums:

Conventional: ~3% down
FHA: 3.5% down (mortgage insurance applies)
VA/USDA: 0% down for eligible buyers/areas

Remember to budget closing costs (often 2%–5% of price) and prepaid taxes/insurance.

Mortgage type

Conventional – Flexible, usually strongest pricing with higher credit/down payment.
FHA – Lower down payment, more flexible credit; includes mortgage insurance.
VA – 0% down for eligible service members/veterans; no monthly MI.
USDA – 0% down in qualifying rural/suburban areas; income/location limits.
Construction-to-permanent – Finances the build, then converts to a standard mortgage at completion

Interest rate

Even a ¼% rate change moves your monthly payment noticeably. If you like today’s payment, consider locking with your lender. Don’t rely on “I’ll refinance later”—plan as if the current rate sticks.

Location-based costs

Property taxes, insurance, and HOA fees can vary widely. Your buying power in one county may look different in the next.

Ongoing homeownership costs

Beyond PITI (principal, interest, taxes, insurance), plan for utilities, lawn care, small repairs, and periodic big-ticket items (appliances, roof, HVAC). A common rule is setting aside 1% of home value per year for maintenance on average—older homes may need more.

How to use your results

Use the price estimate to explore scenarios and find a balance between what you qualify for and what feels comfortable.

Try adjusting:

Down payment – See how more down can remove PMI or shrink your loan.
Loan term – Compare the higher payment/less interest of a 15-year vs. the lower payment/more flexibility of a 30-year.
Rate – Check how a better rate (from improved credit or points) affects price range.
Taxes/insurance/HOA – Test different neighborhoods or communities.

If you want to translate price → payment in more detail, use our Mortgage Calculator to see a full P&I + escrow breakdown and amortization.

Ways to increase how much house you can afford

Pay down debt to improve DTI and borrowing power.
Polish your credit (on-time payments, lower utilization, resolve errors).
Save a larger down payment to borrow less and potentially avoid PMI.
Consider nearby areas with lower taxes/insurance/HOA.
Look into assistance programs (grants, forgivable loans, closing-cost help—especially for first-time buyers).

Even modest progress in one or two areas can shift your affordability range meaningfully.

Friendly reminders

This tool provides estimates for planning; actual approval depends on full underwriting and program rules.
Markets change—focus on what fits your budget and goals today.
When you’re ready, a pre-approval from a lender clarifies your exact numbers and strengthens offers.

At Canbury Homes, we understand that building a new home is a significant investment and the importance of securing the right financing for your new home project. Our team of building experts are here to assist you every step of the way, from choosing the perfect home design to navigating the financing process. Don't wait - contact us today to learn more about how we can help you turn your dream of owning a new home into a reality!