A simple breakdown of how lenders calculate what you qualify for — and how to think about it yourself.
Understanding affordability is the first real step. Here's how lenders think about it — and how you should too.
Most lenders follow this guideline:
Household income: $85,000/year ($7,083/month)
Max housing payment (28%): ~$1,983/month
At today's rates, that could support a home price around $350,000–$400,000 depending on down payment, taxes, and insurance.
Remember: what you qualify for and what you're comfortable paying can be two different numbers. I always encourage buyers to think about their lifestyle, not just the maximum.
Want a personalized number? Let's talk →The 28/36 rule says your housing costs shouldn't exceed 28% of your gross monthly income, and your total debt payments shouldn't exceed 36%. It's a guideline, not a hard rule — some loan programs like FHA allow higher ratios.
Yes, if you apply together. Both incomes are combined, but so are both debts. Sometimes it's better for only one spouse to apply if the other has significant debt or credit issues. I can run the numbers both ways.
Absolutely. Self-employed borrowers typically need 2 years of tax returns and a year-to-date profit and loss statement. Your qualifying income is usually your net income after business deductions, so start organizing early.
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