How Much Home Can You Afford?

Calculate your maximum home price based on your financial situation. Most lenders prefer a debt-to-income (DTI) ratio of 36-43%.

This calculator uses conservative estimates to help you budget realistically.

Factors We Consider

Annual Gross Income

Before taxes, all household income

Monthly Debt Payments

Car loans, student loans, credit cards, etc.

Down Payment Available

Cash available for purchase

Interest Rate (%)

Loan Term

Target DTI Ratio

Lower DTI = easier approval, more financial cushion

How is Affordability Calculated?

Gross Income: Your total income before taxes

Monthly Debts: All recurring debt payments

DTI Ratio: Total monthly debt divided by gross monthly income

Front-end DTI: Housing costs should be under 28% of income

Back-end DTI: All debts should be under 36-43% of income

Down Payment: Larger down payment = more buying power

San Diego Home Buying Tips

Property Taxes: About 1.1% of home value annually

Insurance: Budget $1,500-$3,000/year

PMI: Required if down payment is less than 20%

HOA: Many SD communities have HOA fees ($200-800/mo)

Closing Costs: Budget 2-5% of home price