How do I know how much home I can afford?

Affordability is based on your income, debts, credit, and estimated taxes and insurance. Lenders use debt-to-income ratios to estimate a price range, but your comfort level with the payment is just as important.

What percentage of my income should my house payment be?

Many buyers stay in the 28–35% range of gross monthly income for their total housing payment, depending on debts, loan program, and local costs.

Do property taxes and HOA dues affect how much home I can afford?

Yes. Higher taxes or HOA dues increase your monthly payment, which can lower the price you qualify for. We always factor local tax rates and HOA fees into your affordability estimate.

How does my credit score impact how much I can afford?

Your credit score can affect your interest rate, mortgage insurance costs, and which loan programs you qualify for. Better credit can improve your payment and, in some cases, increase your affordable price range.

Can down payment assistance change how much home I can afford?

Down payment assistance often reduces how much cash you need at closing. It may or may not change your maximum approved price, but it can make a comfortable payment more achievable by lowering upfront costs.

How Much Home Can I Afford? | North County San Diego, Inland Empire & Atlanta Buyers

How Much Home Can I Afford?

Q: How much home can I afford with a VA loan?

VA affordability depends on income, debts, residual income, and local taxes, even though VA allows 0% down. We build VA-specific scenarios through our Valor Home Advantage program.

“How much home can I afford?” is usually the first question buyers ask. This page explains how we estimate your price range, how lenders look at your numbers, and how things like taxes, insurance, HOA dues, and debt affect your payment in North County San Diego, the Inland Empire, and Metro Atlanta.

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The Two Numbers That Really Matter

Affordability isn’t just about what a lender will approve. It’s about two separate numbers:

1. What the lender approves: Based on income, debts, credit, and program rules.
2. What you’re comfortable paying: Based on your lifestyle, savings, and future plans.

Our job is to help you understand both — then build a plan that respects your life, not just the maximum the system will allow.

How Lenders Estimate Your Price Range

Most lenders use a few core factors to estimate how much home you can afford:

Gross monthly income (before taxes).
Monthly debts (credit cards, car loans, student loans, etc.).
Credit score & history.
Loan program (FHA, Conventional, VA, etc.).
Estimated taxes, insurance, and HOA dues.

They then calculate a debt-to-income ratio (DTI) — the percentage of your income that goes to debt and housing.

For a deeper look at your credit and pre-approval, visit the Credit Boost & Pre-Approval page.

What Goes Into Your Monthly Payment?

Your monthly housing payment usually includes:

Principal & interest (the actual loan payment).
Property taxes.
Homeowner’s insurance.
Mortgage insurance (if applicable).
HOA dues (if applicable).

In higher-tax areas (parts of North County San Diego, some Inland Empire and Atlanta counties), the tax line alone can significantly affect how much home you can afford at a given payment.

A Simple Framework for Estimating Affordability

While exact numbers depend on your situation, many buyers use these general guidelines as a starting point:

Total housing payment: Often in the range of 28–35% of gross monthly income, depending on debts and program.
Total debts + housing: Usually capped around 40–50% of gross income, depending on program and credit.

From there, we reverse-engineer price ranges for your specific markets: