Calculate your maximum purchase price based on income and debts
Before taxes, all sources
Car, student loans, credit cards, etc.
Maximum Home Price (43% DTI)
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Max Monthly PITI
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Max Loan Amount
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Front-End DTI
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Back-End DTI
Understanding DTI Ratios
Front-End DTI — Your housing costs (PITI) divided by gross monthly income. Most lenders want this under 28-31%.
Back-End DTI — All monthly debts (housing + other) divided by gross monthly income. The max for most loans is 43%, though some programs allow up to 50%.
How to improve — Pay down debts, increase income, or choose a less expensive home to lower your DTI ratios.