Home Affordability Calculator

Educational estimate only. This calculator uses standard formulas and the figures you enter. It is not a loan offer, a guarantee of terms, an appraisal, or tax advice. Property tax rates vary substantially by municipality and school district in Montgomery and Chester County. Confirm every number with your lender, title company, and tax professional before making a decision.

What a lender approves is not what you should spend

Pre-approval tells you the ceiling. It does not account for childcare, retirement contributions, the car you will need to replace, or the fact that a house generates expenses an apartment does not. Plenty of buyers get approved for a number that would make their life worse to actually spend.

The useful way to use this tool is twice. Once with the standard 43 percent debt-to-income ratio to see the ceiling, and once with a number you would actually be comfortable paying every month to see the realistic target. Shop against the second number.

Notes on using this

• Debt-to-income ratio limits vary by loan program and lender. 43 percent is a common conventional guideline; FHA and some portfolio products allow higher with compensating factors.
• Monthly debt payments means minimum required payments on car loans, student loans, credit cards, and personal loans. It does not include utilities, groceries, or insurance you pay outside of housing.
• The estimate applies PMI automatically below 20 percent down. If you qualify for a VA loan, there is no monthly mortgage insurance, which changes this math substantially.
• You also need cash for closing costs, typically 2 to 5 percent of the purchase price on top of the down payment, plus reserves after settlement.
• Pennsylvania PHFA programs and county-level assistance can supplement your down payment. Check current eligibility with a participating lender before assuming your down payment is fixed.