Affordability Guide
How Much House Can I Really Afford?
A no-fluff, lender-grade walkthrough of the math behind mortgage affordability — and the free tool that runs it for you in 60 seconds.
Skip the math — run your number
ReadinessIQ runs the FHA, VA, USDA, and Conventional formulas live as you answer.
The 28/36 rule (and why lenders ignore it)
The classic guideline says housing should stay under 28% of gross monthly income and total debt under 36%. It's a clean starting point but every loan program has its own real ceiling:
- FHA: up to 56.9% DTI with compensating factors
- VA: residual income test, often allows 50%+ DTI
- USDA: 41% DTI standard, 44% with waiver
- Conventional: 45% standard, 50% with strong reserves
The five inputs that actually move the number
- Gross monthly income — base + verifiable bonus/OT history
- Monthly debts — minimum payments on the credit report
- Down payment — and the source (gift, savings, retirement)
- Credit score band — drives rate, MI, and overlays
- Property taxes & insurance — varies wildly by ZIP
Quick reference: affordability by income
| Annual income | Conservative (28%) | Stretched (FHA 50%) |
|---|---|---|
| $50,000 | $175K–$210K | $240K–$280K |
| $75,000 | $260K–$310K | $355K–$410K |
| $100,000 | $350K–$415K | $475K–$545K |
| $150,000 | $525K–$620K | $715K–$820K |
Assumes 6.75% rate, 5% down, 1.1% taxes, 0.4% insurance. Your actual number depends on credit, debts, and ZIP — run the Scorecard for a precise figure.
Common questions
How much house can I afford on a $75K salary?
Most buyers qualify for $260K–$310K conservatively, or up to $410K with FHA's stretched ratios — depending on debts, rate, and down payment.
Does ReadinessIQ pull my credit?
No. The free Scorecard uses the credit range you provide. A soft pull is opt-in only, inside your portal.
What if I have student loans?
Each program handles deferred or income-driven student loans differently. The Scorecard already accounts for FHA, VA, USDA, and Fannie/Freddie overlays.
Ready for your real number?
The Readiness Scorecard runs lender-grade math in under 60 seconds — free, no credit pull, no SSN.
Calculate My Score