Mortgage Affordability Calculator
How Much House Can I Afford in 2026?
Enter your income and savings — get three real scenarios in seconds. FHA, 3% down, and 20% down, with monthly payment, cash needed, and DTI analysis. Powered by live FRED rate data.
What the calculator shows you
Most affordability calculators give you one number. HomeRates.ai gives you three real loan scenarios side-by-side, so you can see exactly what each path costs — and which one you can actually close on today.
Three real scenarios
FHA 3.5% down, conventional 3% down, and conventional 20% down — with the exact home price you qualify for on each path.
Full monthly payment
Principal & interest, property taxes, insurance, PMI or FHA MIP — every component broken out so there are no payment surprises at closing.
Cash needed to close
Down payment + closing costs, compared against what you have saved. Shows your exact savings gap — or tells you you're ready today.
DTI analysis
Front-end and back-end debt-to-income ratio per Fannie Mae 43% guidelines. Shows exactly where you stand and what a loan officer will see.
Live 2026 rates
Pulls live 30-year average from FRED (Freddie Mac PMMS) weekly. Your payment estimate uses the actual current market rate, not a guess.
Debt impact analysis
Add your monthly car, student loan, or credit card payments — see exactly how much buying power they cost you and whether paying them off first makes sense.
How much house can I afford? — by income
These are approximate qualifying ranges at current 2026 rates (~6.1% 30-year fixed) using Fannie Mae 43% back-end DTI guidelines. Your actual number depends on your savings, debts, and local property taxes — use the calculator above for a precise figure.
| Annual income | Savings | Monthly debts | FHA (3.5% down) | Conv. 3% down | Conv. 20% down |
|---|---|---|---|---|---|
| $75k | $25k | none | $268k | $252k | $294k |
| $95k | $40k | none | $339k | $319k | $372k |
| $120k | $50k | $400/mo | $381k | $358k | $421k |
| $150k | $80k | none | $535k | $503k | $587k |
Estimates assume 2026 FRED 30-year rate, standard property tax (1.2%), and homeowner insurance. Actual results may vary by county, credit score, and lender. For educational purposes only.
How HomeRates.ai calculates affordability
The calculation is deterministic — not AI-estimated. The same inputs always produce the same output, using the same math a loan officer would use.
- Maximum qualifying payment — your gross monthly income × 43% back-end DTI, minus your monthly debts. This is the most you can spend on housing including taxes and insurance.
- Maximum home price — solved backwards from the qualifying payment using the current FRED 30-year rate, estimated tax (1.2%), and insurance, for each down payment scenario.
- Cash to close — down payment + closing cost estimate (3% FHA, 2.5% conventional), compared against your savings input.
- MIP and PMI — FHA MIP calculated per current HUD rates (0.55%/yr on loan balance). PMI estimated at 0.5%/yr, with automatic removal at 80% LTV flagged.
- 2026 loan limits — FHA floor ($541,287) and conforming limits ($832,750 standard, up to $1,249,125 high-cost) applied per FHFA.
Frequently asked questions
How much house can I afford on a $80,000 salary?
On $80,000/year with $30,000 saved, you typically qualify for $285,000–$310,000 using FHA or conventional 3% down at 2026 rates. With 20% down, your range extends to ~$340,000. Enter your exact income above for a precise three-scenario breakdown.
How much house can I afford on a $100,000 salary?
On $100,000/year with $40,000 saved and no other debts, you typically qualify for $360,000–$390,000 with FHA or 3% conventional, or $420,000+ with 20% down. Your monthly debts and property tax rate will move this number — enter them above for your real figure.
What is the 28/36 rule for mortgage affordability?
The 28/36 rule means your housing payment should be ≤28% of gross monthly income, and total debts ≤36%. In practice, conventional lenders allow up to 43% back-end DTI and FHA up to 50% with compensating factors. HomeRates.ai uses the 43% standard to calculate your maximum qualifying price.
How much do I need saved to buy a house?
Minimum cash needed: FHA requires ~6.5% of purchase price (3.5% down + 3% closing costs). Conventional 3% down requires ~5.5%. Conventional 20% down requires ~22.5%. On a $350,000 home: $22,750 for FHA, $19,250 for conventional 3%, or $78,750 for 20% down. The calculator shows your exact savings gap for each scenario.
Does my debt affect how much house I can afford?
Yes — significantly. A $400/month car payment on a $95,000 income can reduce your maximum home price by $50,000–$80,000. This is because monthly debts eat into your DTI allowance. Enter your monthly debts above to see the exact impact on your qualifying range.
Is FHA or conventional better for a first-time buyer?
FHA is typically better if your credit score is below 680 or you have less than 5% saved. Conventional 3% down is better if your credit is 700+ because PMI cancels automatically at 80% LTV, whereas FHA MIP lasts the life of the loan with less than 10% down. HomeRates.ai shows both side-by-side with real cost comparison.
How accurate is the HomeRates.ai affordability calculator?
HomeRates.ai uses a deterministic calc engine — same inputs always produce the same output. It applies Fannie Mae 43% DTI guidelines, live FRED rate data (updated weekly), FHA HUD guidelines, and 2026 FHFA loan limits. Results match what a loan officer would calculate. For educational purposes only — not a pre-approval.