How much mortgage can I qualify for based on my income?

Your maximum mortgage loan amount depends on your gross monthly income, existing debt payments, credit score, down payment, and current interest rates. Lenders typically use a debt-to-income (DTI) ratio of 41-50% to determine qualification. This calculator estimates your maximum loan amount across Conventional, FHA, VA, and USDA programs based on these key factors.

What is a debt-to-income ratio and why does it matter?

Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward monthly debt payments. Lenders use two ratios: front-end (housing expenses only) and back-end (all debts including housing). The back-end DTI is typically capped at 41% for manually underwritten loans and up to 50% with automated underwriting system approval. Lower DTI ratios qualify you for larger loan amounts and better interest rates.

How does my credit score affect how much I can borrow?

Your credit score directly impacts both your mortgage interest rate and PMI (Private Mortgage Insurance) costs. Higher credit scores (760+) qualify for lower interest rates and lower PMI premiums, which increases your borrowing power by reducing your monthly payment. For conventional loans, scores below 620 may require FHA financing instead.

What's the difference between Conventional, FHA, VA, and USDA loans?

Conventional loans require 3-20% down and strong credit (620+). FHA loans allow 3.5% down with lower credit scores (580+) but require mortgage insurance for the loan term. VA loans offer 0% down for eligible veterans with no PMI. USDA loans provide 0% down in rural areas with income limits. Each program has unique qualification requirements that affect your maximum borrowing capacity.

How do seller concessions work and what are the limits?

Seller concessions are contributions from the home seller toward the buyer's closing costs and prepaid expenses. For conventional loans, maximum seller contributions are: 3% with less than 10% down payment, 6% with 10-24.99% down, and 9% with 25% or more down. These contributions reduce out-of-pocket closing costs but do not affect the loan amount.

What is PMI and when is it required on a conventional loan?

Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20% of the purchase price. PMI costs range from 0.19% to 2.33% of the loan amount annually, depending on your credit score, down payment percentage, and loan type. PMI protects the lender if you default and automatically cancels when you reach 22% equity (or can be removed at 20% equity).

What's the maximum home price I can afford with my income?

Your maximum affordable home price depends on your gross monthly income, total monthly debt payments, target debt-to-income ratio, down payment amount, interest rate, and loan program. Use this calculator to determine your personalized maximum purchase price across Conventional, FHA, VA, and USDA loan programs, including all monthly costs like taxes, insurance, HOA fees, and mortgage insurance.

Can I get a mortgage with 0% down payment?

Yes, both VA loans (for eligible veterans and service members) and USDA loans (in eligible rural areas) offer 0% down payment options. Conventional loans typically require at least 3% down, while FHA loans require 3.5% down. This calculator shows your maximum loan amount for each program, including zero-down options where available.

Mortgage Loan Calculator

Estimate your maximum home loan amount across all major mortgage programs

Finding out how much house you can afford is the most important first step in your home buying journey. This comprehensive mortgage loan calculator takes the guesswork out of budgeting by analyzing your income, existing debts, and credit profile to determine your maximum borrowing power across multiple loan programs.

Unlike basic affordability tools, this calculator provides detailed results including your maximum purchase price, estimated monthly payment (PITI), PMI costs, closing costs, and cash needed at closing. You can compare conventional loans, FHA, VA, and USDA programs side by side to find the best fit for your financial situation.

Whether you're a first-time homebuyer, looking to refinance, or exploring investment property options, this tool gives you the clarity you need to make confident home-buying decisions. Enter your financial information below to discover your true buying power today.

Personal Information

Gross Monthly Income ($): Monthly Debt Payments ($): Credit Score:

Loan Program

Select Loan Program:

Loan Details

Down Payment: Target DTI Ratio (%): Loan Term (years): Interest Rate (%): Loan Type: (Choose Fixed Rate or Adjustable Rate)

Insurance & Fees

Private Mortgage Insurance:
PMI will be automatically calculated based on your down payment percentage, credit score, and loan type.

PMI Requirements:
• 20%+ down payment: No PMI required
• Less than 20% down: PMI required

PMI Rate Factors:
• Loan-to-Value (LTV) Ratio: Higher LTV = Higher PMI
• Credit Score: Lower score = Higher PMI
• Loan Type: Adjustable Rate = Higher PMI than Fixed Rate
• LTV Ranges: 97-95%, 95-90%, 90-85%, 85% and below

Property Costs

Closing Costs (% of loan amount):

Annual Property Taxes (% of home price):

Annual Insurance (% of home price):

Monthly HOA ($):

Seller Contribution

Seller Pays Buyer's Closing and Prepaid Expenses up to:

Seller Concession Limits by Down Payment:

How to Use This Mortgage Loan Calculator

Understanding Your Inputs

Gross Monthly Income: Enter your total gross monthly income before taxes and deductions. Include all regular income sources such as salary, bonuses, commissions, overtime, and any rental or investment income. For self-employed borrowers, use your average monthly income over the past two years after business expenses. (Use our income calculator for detailed calculations)

Monthly Debt Payments: List all minimum monthly payments on existing debts including credit cards, auto loans, student loans, personal loans, and any other recurring obligations. Do not include utilities, groceries, or the proposed mortgage payment. Use our debt-to-income calculator for a comprehensive debt analysis.

Credit Score: Select your credit score range. Higher scores unlock lower interest rates and lower PMI premiums. For joint borrowers, lenders typically use the lower of the two middle scores. For couples with different scores, see our Credit Score Average Calculator to understand which score lenders use.

Down Payment: Choose the percentage of the home price you plan to pay upfront. A 20% down payment eliminates PMI entirely. If you're considering a low-down-payment conventional loan, check our 3% down conventional loan programs guide for options.

Target DTI Ratio: This determines your maximum allowable debt-to-income ratio. The standard is 41% for manually underwritten loans, but Automated Underwriting Systems (AUS) can approve up to 50% with compensating factors. Higher DTIs reduce your maximum loan amount.

Understanding Your Results

Estimated Home Price: This is the maximum purchase price you can afford based on your income, debts, and selected loan program. This figure includes the loan amount plus your down payment.

Total Loan Amount: The amount you'll borrow after accounting for your down payment and any applicable upfront fees (FHA MIP, VA funding fee, USDA funding fee). This is the actual mortgage amount you'll be approved for.

Monthly Payment Breakdown: Your total monthly housing cost includes principal & interest, property taxes, homeowners insurance, PMI (if applicable), and HOA fees. This is your total PITI+HOA payment.

PMI Costs: Private Mortgage Insurance is required for conventional loans with less than 20% down. The cost varies by credit score, down payment amount, and loan type. PMI automatically cancels when you reach 22% equity.

FHA Loans: FHA loans require both an upfront MIP (1.75% of loan amount, rolled into the loan) and annual MIP (0.50-0.55% depending on LTV). Unlike conventional PMI, FHA MIP typically remains for the life of the loan with less than 10% down.

VA & USDA Loans: These programs don't require monthly mortgage insurance but do charge a one-time funding fee (VA: 1.25-3.3%, USDA: 1.0%) that can be rolled into the loan amount.

Cash Needed at Closing: This includes your down payment plus closing costs and prepaids, minus any seller contributions. This is the total cash you'll need on closing day.

Qualification Gap Analysis: Shows if your current DTI ratio exceeds limits and provides actionable steps to improve your qualification, such as reducing debts or increasing income.

Scenario Comparison: Compare your current plan with alternatives like a 20% down payment (eliminating PMI) or a more conservative home price to see how different scenarios affect your monthly payment and upfront costs.

Cash Flow Analysis: Analyzes your monthly budget after housing costs, debts, and estimated taxes. It also evaluates if your payment falls within the recommended 28% "comfort zone" for housing expenses.

Loan Program Recommendations: Personalized recommendations based on your credit score, down payment, and financial profile. For more detailed comparisons, see our FHA vs conventional loans guide and VA vs conventional loan comparison.

Important Notes About Seller Contributions

Seller Contribution: The maximum seller contribution depends on your down payment percentage. For conventional loans: 0-9.99% down = max 3%, 10-24.99% down = max 6%, 25%+ down = max 9%. FHA, VA, and USDA loans typically allow up to 6% of the sale price toward closing costs and prepaids.

Additional Resources

For a complete overview of all mortgage planning tools, visit our mortgage calculators hub. If you're considering a cash-out refinance or rate/term refinance, check our specialized refinance calculators.

For first-time homebuyers, understanding your income requirements and down payment options is essential. Learn about when conventional loans require PMI and how to cancel PMI when you reach 20% equity.

Qualification Gap Analysis

Scenario Comparison

Monthly Cash Flow Analysis

Loan Program Recommendations

How to Use This Mortgage Loan Calculator

Understanding Your Inputs

Understanding Your Results

Important Notes About Seller Contributions

Additional Resources