Calculate home affordability for real estate investments and properties
Enter annual income, monthly debts, down payment, interest rate, and loan term. The calculator determines maximum home price you can afford using debt-to-income ratios.
With $100,000 income, $500 monthly debts, and 20% down, you can afford approximately $375,000 home at 6.5% interest.
Housing costs shouldn't exceed 28% of gross monthly income; total debt payments (including housing) shouldn't exceed 36%. Lenders use this for qualification.
20% avoids PMI but 5-15% is common. FHA allows 3.5% down. Consider opportunity cost of tying up more cash vs PMI costs.
No, pre-approval is conditional. Final approval requires property appraisal, title review, and verification that your financial situation hasn't changed.