Calculator
Affordability and debt-to-income
Two ratios decide what you can borrow. This tool applies the real program caps rather than a single generic rule, and names which one is holding you back.
Two ratios decide what you can borrow
Front-end is housing over income. Back-end is all debt over income. Every program caps them differently, and the lower of the two is what actually binds.
- Housing payment
- Other monthly debts
- Guideline limits
The payment at the maximum price
- Principal & interest$2,70774.7%
- Property tax$57715.9%
- Homeowners insurance$1343.7%
- Mortgage insurance$2045.6%
- HOA dues$00.0%
- Maximum housing payment
- $3,625
- Loan amount
- $445,500
- Down payment
- $49,500
- Front-end ratio
- 38.1%
- Back-end ratio
- 45.0%
- Binding constraint
- The back-end ratioConventional conforming
- Payment at the 28/36 rule
- $2,660
Show the numbers as a table
| Program | Front-end cap | Back-end cap | Max payment | Max price |
|---|---|---|---|---|
| Conventional | None | 45% | $3,625 | $495,000 |
| FHA | 31% | 43% | $2,945 | $393,000 |
| VA | None | 41% | $3,245 | $460,000 |
| USDA | 29% | 41% | $2,755 | $376,000 |
| 28/36 rule | 28% | 36% | $2,660 | $358,000 |
Estimates only. Ratios are maximums, not targets. An approval at 45% is still an approval that leaves you 45% committed before groceries. Sample figures for a demonstration site; automated underwriting, reserves and residual income change the real answer.
What each program will actually allow
| Program | Front-end | Back-end | In practice |
|---|---|---|---|
| Planning rule of thumb (28/36) | 28% | 36% | Not a guideline, a budgeting convention. Conservative and still useful. |
| Conventional conforming | Not separately capped | 45% | To 50% with reserves, 700+ FICO and loan-to-value of 75% or lower. |
| FHA | 31% | 43% | Manual underwrite figures. TOTAL Scorecard approvals routinely clear above 50%. |
| VA | Not separately capped | 41% | A benchmark, not a cap. Residual income above the regional table governs. |
| USDA guaranteed | 29% | 41% | GUS may accept higher with a 680 score and documented compensating factors. |
| Jumbo portfolio | Not separately capped | 43% | To 45% with twelve months of reserves verified. |
| DSCR investor | Not used | Not used | Personal debt ratios are irrelevant. The property must cover at 1.10 or better. |
Scroll the table sideways to see every column.
The questions behind the ratios
Most declined files fail on the back-end ratio, and most of those fail on a debt the borrower forgot to mention. Bring the credit report, not the memory.
Get a real pre-approvalMinimum credit card payments, car loans and leases, student loan payments (or 0.5% to 1% of the balance where the payment is deferred), personal loans, and court-ordered alimony or child support. Utilities, insurance, groceries, childcare and phone bills do not count.
On a conventional loan, yes, with compensating factors: a 700 or better score, twelve months of reserves and a loan-to-value at 75% or lower. FHA approvals above 50% through TOTAL Scorecard are routine. Whether you should is a separate question we will also answer.
Because VA applies a residual income test alongside the ratio. After the mortgage, all debts, taxes and an estimated maintenance and utilities figure, a set dollar amount must remain based on family size and region. Exceeding the requirement by 20% allows a higher ratio.
Rarely on its own. Income-driven repayment plan payments count at the documented amount on conventional and FHA files where that amount is above zero. A deferred loan with no documented payment is counted at a percentage of the balance, which is where files get tight.
No. The ratios are lender risk limits, not budgeting advice. The 28/36 option in the calculator above shows the conservative figure, and the gap between it and your maximum is usually several hundred dollars a month.
Turn a maximum into a pre-approval
A pre-approval letter with a named underwriter and a defined price is what listing agents in this market actually respond to.
No application fee. Soft credit pull at pre-qualification. Flat $1,095 origination at closing.