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    • Home
    • Loan Options
      • Mortgage Loan Options
      • Conventional Mortgages
      • VA Home Loans
      • FHA Loans 2025
      • Jumbo Home Loans
    • Purchase
      • How Much Can I Afford
      • Home Buying Process
      • Down Payment Assistance
      • Temporary Rate Buydown
      • Mortgage Loan Process
    • Refinance
      • Refinancing your home
      • Cash-Out Refinance
      • Refinance vs. HELOC
      • Streamline Refinance
    • Mortgage News
    • WC Team
      • Zach Wain
      • Sharon Olson
      • Ashley Wain
      • Jonas Helstab
    • Calculators
    • Mortgage Glossary
    • Reviews
    • Contact Us
    • Apply Now
    • Mortgage FAQs

(480) 336-3737

Wain Capital

Signed in as:

filler@godaddy.com

  • Home
  • Loan Options
    • Mortgage Loan Options
    • Conventional Mortgages
    • VA Home Loans
    • FHA Loans 2025
    • Jumbo Home Loans
  • Purchase
    • How Much Can I Afford
    • Home Buying Process
    • Down Payment Assistance
    • Temporary Rate Buydown
    • Mortgage Loan Process
  • Refinance
    • Refinancing your home
    • Cash-Out Refinance
    • Refinance vs. HELOC
    • Streamline Refinance
  • Mortgage News
  • WC Team
    • Zach Wain
    • Sharon Olson
    • Ashley Wain
    • Jonas Helstab
  • Calculators
  • Mortgage Glossary
  • Reviews
  • Contact Us
  • Apply Now
  • Mortgage FAQs

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How Much House Can I Afford? (2025 Guide)

Get a clear affordability number before you shop. We’ll show you how lenders calculate debt-to-income (DTI), what counts in your monthly housing payment, and smart ways to boost buying power—then we’ll confirm everything with a fast pre-approval.


Quick rule of thumb

  • Aim for a housing payment ≈ 25–31% of gross monthly income.
     
  • Keep total DTI (all debts + housing) near 36–45% depending on program.
     
    • Conventional typically caps near 45% (strong files can reach ~50%).
       
    • FHA can allow higher DTIs on approve/eligible findings.
       
    • VA uses residual income instead of a strict DTI cap. 


What lenders look at

  • Income & stability (W-2/1099/self-employed rules)
     
  • Credit score & history (pricing and PMI depend on this)
     
  • Down payment & assets (plus a cushion of reserves if required)
     
  • Property type & HOA (condos/townhomes may affect payment)
     
  • Appraisal (value and condition)

Estimate your budget in 5 steps

  1. List gross monthly income. Include eligible co-borrowers.  
  2. Add monthly debts. Cards (min payments), auto, student loans, child support, etc.  
  3. Choose a target DTI. Many buyers use 36–43% as a planning range.  
  4. Back into a payment. Target DTI × income − other debts = max housing payment.  
  5. Adjust for taxes, insurance, MI, HOA. What’s left is the principal & interest your price must fit.  


What’s in the monthly housing payment


PITI + (MI/HOA) = Principal + Interest + Taxes + Insurance + Mortgage Insurance (if <20% down on Conventional; FHA has MIP) + HOA dues (if applicable)

Ways to increase buying power (without over-stretching)

  • Improve credit (often lowers PMI and rate).  
  • Rate buydown (permanent points or 1-0 / 2-1 buydown).  
  • Seller credits toward closing costs to free cash for buydown.  
  • Consider ARMs (5/6, 7/6, 10/6) if you expect to move/refi in 5–10 years.  
  • Compare FHA vs Conventional; FHA’s MIP vs Conventional PMI can change the winner.  
  • Increase down payment or pay debts to reduce DTI.

FAQs: How affordability works

What DTI should I target?

Planning around 36–43% total DTI keeps you competitive and comfortable. Program caps vary.


Does PMI hurt affordability?

PMI (Conventional) or MIP (FHA) adds to payment but can enable lower down payments. We’ll compare total cost and PMI-removal timing.


How much should I budget for closing costs?

Plan ~2–5% of price (plus prepaids for taxes/insurance). Seller credits can offset some costs.


Do taxes, insurance, and HOA count in DTI?

Yes—lenders use full housing payment (PITI + MI + HOA) when calculating DTI.


How fast can I get pre-approved?

Often same day with complete docs. Pre-approval strengthens offers and clarifies budget.


Ready to dial in your number?

Start a pre-approval and we’ll run scenarios that fit your comfort payment and price range.


Compare loan options

See how affordability shifts with each program:

  • Conventional Loans – /conventional-loans  
  • FHA Loans – /fha-loans  
  • VA Loans – /va-home-loans  
  • Jumbo Loans – /jumbo-loans

What Documents do I need for the Mortgage Application

  • Government issued ID - such as a drivers license
  • Income and Employment
  • W-2 forms and Tax Returns
  • Assets and Debts

Gathered All Your Documents?

Apply Now!

Wain Capital, LLC, Arizona - 0951257 & 1825506 Zachary Wain, 207079, Wain Capital LLC, 1825506 Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, 1825506 Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, 207079 or Licensed by the Department of Business Oversight under the California Finance Lenders Law, 207079 NMLS# 1825506 Wain Capital, LLC (480) 336-3737 NMLS# CO-100507291 Zachary Wain (480) 336-3737

1825506 - 207079 Wain Capital LLC, 15848 N 51st Place, Scottsdale, AZ, 85260, 1825506, Residential Mortgage Loan Company Zachary Wain, Residential Mortgage Loan Originator, 207079, Wain Capital LLC, 15848 N 51st Place, Scottsdale, AZ, 85254, Oregon Mortgage Lending License 1825506

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Wain Capital | Scottsdale, AZ | 480-336-3737