Enter your gross monthly income, existing debts, and down payment. The 28/36 rule gives you a conservative maximum home price — with context on FHA loans, conventional 20% down, PMI, and VA loan options.
A US household earning $8,000/month gross with $400/month in debts and an $84,000 down payment: the housing cap is $2,240 (28%) and the total-debt cap leaves $2,480 for housing. Binding limit: $2,240/month.
At 6.8% over 30 years, $2,240/month services a loan of ~$341,000. Add $84,000 down: maximum affordable price roughly $425,000. A conventional loan at 20% down on $420,000 avoids PMI; at less than 20% down, budget for PMI of $100–$200/month until you reach 20% equity.
The 28/36 rule is used by Fannie Mae, Freddie Mac, and most conventional lenders as a baseline affordability guideline. FHA loans are more flexible (up to 31/43 or higher with compensating factors), but the 28/36 rule remains the most conservative and widely applicable benchmark.
US specifics: Property taxes (0.5–2.5% of value/year depending on state) and homeowner’s insurance (~0.5%/year) are not included in this calculator but are part of the PITI payment lenders evaluate. To account for them, reduce your target price by roughly $100–$300/month worth of loan.
An FHA loan requires as little as 3.5% down for borrowers with a 580+ credit score (10% for 500–579). FHA allows a back-end DTI up to 43%. An upfront MIP of 1.75% plus annual MIP of 0.55–1.05% adds to the total cost.
PMI is required when your down payment is less than 20% (LTV above 80%). It costs roughly 0.5–1.5% of the loan per year. It cancels automatically at 22% equity or upon your request at 20% equity.
Housing PITI should not exceed 28% of gross monthly income; all monthly debts should not exceed 36%. Conventional lenders apply this; FHA and VA allow higher ratios with compensating factors.
VA loans are available to eligible veterans and service members. No down payment required, no PMI, and DTI up to 41%. A one-time funding fee (1.25–3.3%) applies in most cases.
The 2026 baseline conforming limit is $806,500 for a single-unit property in most US counties. High-cost areas have higher limits. Loans above the limit are jumbo loans and require stricter qualification.
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