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How Much House Can We Afford?

Calculate your maximum home price using combined income and lender DTI rules. See the 28% front-end and 36% back-end debt-to-income limits, full PITI breakdown, and cash needed to close.

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Before taxes
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Car payments, student loans, min. credit card
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Annual, as % of home value
Maximum Affordable Home Price (DTI-Based)
$474,418
Combined gross income$144,000/yr
2.5× income rule$360,000
3× income rule$432,000
Max loan amount$414,418
Est. monthly PITI$3,360/mo
Back-end DTI33.0%
Based on the 28% front-end DTI (PITI only) and 36% back-end DTI (PITI + all debts). Lenders vary — some allow up to 43% back-end DTI for qualified mortgages.

How Much House Can a Couple Afford?

Buying a home together is one of the biggest financial decisions a couple makes. Lenders use debt-to-income ratios (DTI) to determine how much they'll lend you. Understanding these rules helps you set a realistic price range before house hunting.

The 28% Front-End Rule

Your total housing payment (PITI — Principal, Interest, Taxes, Insurance) should not exceed 28% of your combined gross monthly income. This ensures housing doesn't consume an unsustainable share of your income.

The 36% Back-End Rule

All monthly debt payments combined (PITI + car loans + student loans + minimum credit card payments) should not exceed 36% of gross monthly income. Some lenders allow up to 43% for qualified mortgages.

Max PITI (front-end) = Combined Gross Monthly × 28%
Max All Debts (back-end) = Combined Gross Monthly × 36%
Max PITI (back-end constrained) = Max All Debts − Other Monthly Debts
Max PITI = min(front-end PITI, back-end PITI)

PITI = Principal + Interest + Property Tax/12 + Insurance/12
Max Loan = derived from max P&I payment at current interest rate

Worked Example — $12,000 Combined Gross Monthly

Combined income: $12,000/mo gross. Monthly debts (car + student loans): $600. Rate: 6.75%, 30yr.

Front-end limit (28%)$3,360/mo PITI
Back-end limit (36%)$4,320 total − $600 debts = $3,720 PITI
Binding constraint$3,360/mo (front-end)
Max home price~$480,000
Down payment (20%)$96,000
Max loan amount~$384,000

Beyond DTI — Other Factors for Couples

Dual Income Risk

Lenders count both incomes, which increases your purchasing power — but if one partner loses their job, can you make the payment on one income alone? Many financial advisors recommend sizing your mortgage so you could handle payments on 1.5 incomes (one full + one part-time) rather than two full incomes.

Down Payment and PMI

A down payment below 20% typically requires Private Mortgage Insurance (PMI) — an additional 0.5–1.5% of the loan annually added to your monthly payment. This reduces the loan amount you qualify for and increases the true cost of ownership.

Closing Costs

Budget 2–4% of the purchase price for closing costs (lender fees, title insurance, prepaid items, escrow setup). On a $400,000 home, this is $8,000–$16,000 in addition to your down payment.

Frequently Asked Questions

Yes, if both names are on the application. Lenders count all verifiable income: W-2 wages, self-employment income (usually averaged over 2 years), part-time income (typically requires 2-year history), and rental income (usually 75% of gross rents). Both partners' credit scores are reviewed — lenders typically use the lower of the two primary borrowers' mid-scores. If one partner has significantly lower credit, it may make sense for only the higher-credit partner to be on the loan.
If only one partner is on the mortgage but both are on the deed, the non-borrowing partner owns equity but isn't liable for the debt. This can be advantageous if one partner has bad credit or high debts. However, the qualifying income drops to one salary, reducing the purchase price you can afford. In community property states, the non-borrowing spouse may still need to sign certain documents.
At minimum: 3-5% down (FHA or conventional with PMI) + 2-4% closing costs + 2-3 months emergency fund. For best terms: 20% down to avoid PMI + 3-4% closing costs. On a $400,000 home, 20% down means saving $80,000–$96,000 total before purchasing. First-time buyer programs in many states offer down payment assistance, allowing lower down payments with favorable terms.
No — qualifying for an amount and affording it comfortably are different things. The bank's maximum is based on your ability to make the payment, not your ability to maintain your lifestyle, save for retirement, or handle unexpected expenses. Most financial advisors suggest targeting housing costs at 25-28% of take-home pay (not gross), leaving room for life goals beyond home ownership. Buying below your maximum also provides a buffer if one income disappears.
Use current 30-year fixed rates plus 0.25-0.5% as a buffer for rate movement during your search. As of early 2026, 30-year fixed rates are in the 6.5-7.5% range. For longer-term planning, recognize that rates change — the ability to refinance if rates drop is valuable. A 1% rate reduction on a $400,000 mortgage saves approximately $235/month in payment.

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Marriage Tax Calculator
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Advanced

Affordability zone chart (conservative/moderate/aggressive), full PITI breakdown with PMI, and rent-vs-buy break-even analysis.

+ Advanced Affordability Analysis
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Affordability Zones (Combined Income: $145,000)
Max by DTI: $555,967
Conservative (2.5x)$362,500
PITI: $2,669/mo (22.1% of income) — 28% guideline line shown
Moderate (3.5x)$507,500
PITI: $3,850/mo (31.9% of income) — 28% guideline line shown
Aggressive (4.5x)$652,500
PITI: $5,030/mo (41.6% of income) — 28% guideline line shown
28% DTI = front-end limit (PITI only). 36-43% = back-end (all debt). Couples should target keeping PITI below 28% of gross monthly income.
Professional

Full mortgage qualification with all debts and DTI ratios, stress test for job loss and rate changes, and year-by-year equity building projection.

+ Professional Mortgage Modeling
Income
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All Monthly Debts
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Mortgage Details
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Full Mortgage Qualification
Likely to Qualify
Monthly PITI$3,381
All Monthly Debts$1,200
Total Monthly Debt Payments$4,581
Front-End DTI28.0% (limit: 28%)
Back-End DTI37.9% (limit: 43%)
Max Qualified (28% front-end)$450,318
Max Qualified (43% back-end)$544,271
Conservative Max$450,318