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NOOKLENDING

Affordability

How much house can I actually afford?

This runs your income and your monthly debts through the same debt-to-income math a lender actually applies, not a rule of thumb like a multiple of your salary.

In short, this gives you a starting price ceiling based on your real numbers, a place to start the search, not a guarantee of what you will be approved for.

How to use this calculator

  1. Enter your monthly income before taxes, not your take-home pay
  2. Add up your monthly debts, car payments, student loans, minimum credit card payments
  3. Leave the debt-to-income ceiling where it is unless you already know your target, most lenders start around here
  4. Adjust your down payment and the rate you want to test to see how the price ceiling moves
$7,500
$600
43%
10%
6.5%

Home price this points to

$326,002

Max monthly housing payment
$2,625
Loan amount at that price
$293,402

Lenders weigh your full debt load together, not just the mortgage. This gives you a starting ceiling to work from, not a guarantee.

How this number is built

Income × DTI ceiling
$3,225
Minus monthly debts
$600
Estimated monthly tax
$571
Estimated monthly insurance
$200
Leaves this for principal and interest
$1,854

The tax estimate above uses a placeholder rate. It varies by city and county, so check the city page for the area you are looking in for a more accurate number.

See how First-Time Homebuyer works

Debt-to-income is the real gatekeeper, not your income alone

Lenders do not just look at what you make. They look at what you make against what you already owe, all of it added together against your gross monthly income. That ratio, not your salary by itself, is usually what actually caps how much house you can buy.

Two people earning the same income can qualify for very different loan amounts depending on what else shows up on their credit report. A car payment or student loan you barely notice month to month can meaningfully change this number.

This is a ceiling, not a target

The number this calculator gives you is the top of what the math allows, not what I would necessarily recommend you spend. Plenty of buyers qualify for more than they actually want their payment to be, and that is a completely reasonable place to land.

I would rather show you the real ceiling and let you decide how close to it you want to live, than quietly assume you want to max it out.

Your down payment changes the ceiling more than people expect

A larger down payment does two things at once. It lowers your loan amount, which lowers your payment, and it can improve your pricing depending on the loan type. Both of those push your affordable price up, sometimes by more than people assume from a percentage point or two of difference.

This is also where down payment assistance programs can change the math entirely for a first-time buyer. If your savings are the limiting factor rather than your income, that is worth a real conversation before you assume a number is out of reach.

Getting pre-approved is a different, more precise step

This tool works off a target debt-to-income ceiling you set yourself. An actual pre-approval runs your real credit, your real income documentation, and the specific guidelines of the loan program that fits your file, which can move this number in either direction.

Think of this as the conversation starter, the number that tells you roughly where to start looking, before we run the real one together.

Planning tools, not quotes. Every number on this page comes from what you type in. None of it touches your credit, and none of it is a pre-qualification, an application, or an offer of credit.

Jennifer Ferrara, loan officer and owner of Nook Lending

Jennifer Ferrara

Loan Officer · NMLS #2781982

Fourteen years navigating real estate deals taught me to listen before I recommend anything. Tell me what you're working with, and let's talk it through.

Text meStart your pre-approval

Where I Lend

Licensed throughout Texas, and I speak Spanish. Don't see your town? Ask, I am probably still in reach.

Cities I specialize in:

Kyle, TX · Buda, TX · San Marcos, TX · South Austin · Dripping Springs, TX · Driftwood, TX

See all service areas

Ready to see the real numbers, not the estimate?

Send me what you are working with and I will run it against your actual file, not a placeholder rate. Fifteen minutes tells you where you really stand.

Start Scenario Review
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