Calculator
Affordability and debt-to-income
Two ratios decide what you can borrow. This tool applies the real program caps rather than a single generic rule, and names which one is holding you back.
Two ratios decide what you can borrow
Front-end is housing over income. Back-end is all debt over income. Every program caps them differently, and the lower of the two is what actually binds.
Cap for this program: no separate cap
Cap for this program: 45%
- Maximum total housing payment
- $3,625
- Binding constraint
- The back-end ratio
- At the conservative 28/36 rule
- $2,660
- Program
- Conventional conforming
Ratios are maximums, not targets. An approval at 45% is still an approval that leaves you 45% committed before groceries. Sample figures for a demonstration site; automated underwriting, reserves and residual income change the real answer.
What each program will actually allow
| Program | Front-end | Back-end | In practice |
|---|---|---|---|
| Planning rule of thumb (28/36) | 28% | 36% | Not a guideline, a budgeting convention. Conservative and still useful. |
| Conventional conforming | Not separately capped | 45% | To 50% with reserves, 700+ FICO and loan-to-value of 75% or lower. |
| FHA | 31% | 43% | Manual underwrite figures. TOTAL Scorecard approvals routinely clear above 50%. |
| VA | Not separately capped | 41% | A benchmark, not a cap. Residual income above the regional table governs. |
| USDA guaranteed | 29% | 41% | GUS may accept higher with a 680 score and documented compensating factors. |
| Jumbo portfolio | Not separately capped | 43% | To 45% with twelve months of reserves verified. |
| DSCR investor | Not used | Not used | Personal debt ratios are irrelevant. The property must cover at 1.10 or better. |
Scroll the table sideways to see every column.
The questions behind the ratios
Most declined files fail on the back-end ratio, and most of those fail on a debt the borrower forgot to mention. Bring the credit report, not the memory.
Get a real pre-approvalMinimum credit card payments, car loans and leases, student loan payments (or 0.5% to 1% of the balance where the payment is deferred), personal loans, and court-ordered alimony or child support. Utilities, insurance, groceries, childcare and phone bills do not count.
On a conventional loan, yes, with compensating factors: a 700 or better score, twelve months of reserves and a loan-to-value at 75% or lower. FHA approvals above 50% through TOTAL Scorecard are routine. Whether you should is a separate question we will also answer.
Because VA applies a residual income test alongside the ratio. After the mortgage, all debts, taxes and an estimated maintenance and utilities figure, a set dollar amount must remain based on family size and region. Exceeding the requirement by 20% allows a higher ratio.
Rarely on its own. Income-driven repayment plan payments count at the documented amount on conventional and FHA files where that amount is above zero. A deferred loan with no documented payment is counted at a percentage of the balance, which is where files get tight.
No. The ratios are lender risk limits, not budgeting advice. The 28/36 option in the calculator above shows the conservative figure, and the gap between it and your maximum is usually several hundred dollars a month.
Turn a maximum into a pre-approval
A pre-approval letter with a named underwriter and a defined price is what listing agents in this market actually respond to.
No application fee. Soft credit pull at pre-qualification. Flat $1,095 origination at closing.