How Much Home Can You Afford?
Determining a home-buying budget is an important step in starting your home search. Find out how much you may qualify for.
Calculate Your Home Buying Budget in Just a Few Minutes
You may qualify for a home up to:
Estimated Monthly Payment:
$0
*Principle and interest payments only. Based on a conventional loan type. Based on percentage of down payment, PMI may be required. Not included in this estimate. Monthly loan payment does not include homeowner’s insurance or property taxes.
Take the Next Step
If you’d like to start your pre-qualification, send your info to a Homie Loans™ Pro now. Then, start shopping for homes in your projected price range!
First Time Home Buyer Myths Debunked
You don’t need 20% down to buy a home.
You don’t need a perfect credit score.
You don’t need to be entirely debt free.
You don’t have to figure out your budget alone.
What You Should Know About Affording a Home
Annual Income
The total income you (and your co-buyer/borrower) take home each year before taxes.
Monthly Debts
How much you spend toward loans of all kinds, like credit cards, cars, or student loans. This will help determine how much you spend on other expenses per month and help assess what a healthy additional home payment expense could be.
Debt-to-Income Ratio (DTI)
This is a percentage calculated based on the two definitions above, your income and debts. In order to qualify for some types of loans, you need below a certain percentage of DTI. A loan officer from Homie Loans™ can help you figure out what kind of loan you might qualify for.
Down Payment
Your down payment is how much you plan to put down on the home you wish to buy from your pocket. You are not always required to have a certain percentage of the home’s value to put down, but it may affect the type of loan you get and it may add an additional cost to your monthly payments.
Loan Types
Conventional loans are some of the most common. They are not backed by the government, but they do adhere to the government standards for lending. They do require a certain percentage of DTI and downpayment to qualify.
FHA stands for Federal Housing Administration. They are a type of loan that is backed by the government. Typically lower-income borrowers qualify for and use these loans because they do not require as high of a credit score or down payment.
VA loans are backed by the Department of Veteran Affairs. They assist US veterans, active duty service members, and military families in buying a home. You don’t have to have a minimum credit score, and you don’t need a down payment.
USDA loans are a type of loan that requires no down payment and is meant for buyers moving into rural areas. These loans are backed by the United States Department of Agriculture. The DTI threshold is a bit higher than traditional loans.
Interest Rate
The total income you (and your co-buyer/borrower) take home each year before taxes.