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UpdatedAugust 22, 2026ReviewedAugust 23, 2026Where our FHA figures come from
Couple reviewing their household budget on a laptop to see how much house they can afford
Affordability & DTI

How much home can you actually buy?

Works backward from your income and debts using FHA's 31/43 debt-to-income benchmarks to show the purchase price, down payment and full monthly payment you qualify for.

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3.5%
Min. down payment
580
Min. FICO score
$1,249,125
2026 high-cost ceiling
Quick answer

How much house can you afford with an FHA loan?

FHA affordability is driven by your debt-to-income ratio. Add your new housing payment to all other monthly debts; FHA approvals commonly go to 43% of gross income and can reach 56.9% with compensating factors like reserves, residual income, or a long stable job history.

What this means for your mortgage

Your income and existing debts set the ceiling — clearing one small monthly payment often buys more house than saving another month.

Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 23, 2026 against HUD Handbook 4000.1

Price out that payment
TL;DR

FHA affordability: key takeaways

  • Front-end (housing) ratio guideline: 31%
  • Back-end (total debt) ratio guideline: 43%, up to 56.9% with strong factors
  • Student loans count at the actual payment or 0.5% of the balance
  • Non-occupant co-borrower income can raise your ceiling
  • Paying off a car loan often adds more buying power than a bigger down payment
  • Property taxes and insurance vary widely by county and change affordability

FHA Loan Rates for FHA Affordability

Everything on this page about FHA Affordability comes back to one question: what does the loan actually price at? What you are quoted depends on the file — credit profile, base loan amount, down payment, property type, term and lock period each shift FHA pricing. Use the pricing form below to see live FHA options for your file, including provider APR and whether each option costs points or returns a lender credit.

Snapshot pricing unavailable

No current pricing snapshot — we never show sample rate figures.

Sample scenario: Florida primary residence, 30-year fixed FHA. Pricing is refreshed once every business day and can change between refreshes.

Loading the most recent FHA pricing snapshot…

Snapshot pricing is an example for the sample scenario described above. It is not a quote, an application, a pre-approval, a rate lock, an offer of credit or a commitment to lend, and it is not personalized to you.

APR is supplied by our pricing provider for the exact scenario priced. Other lender or third-party charges listed separately may not be reflected, and the final APR can change. Your final mortgage disclosures control.

A lender credit reduces eligible closing costs only. It cannot exceed those costs and is never cash back to the borrower.

Get my own FHA pricing

The three cards above are examples from the latest daily snapshot. Enter your own purchase price, down payment, credit score and location to see every eligible FHA option for your scenario, priced right now.

Your numbers

Estimated maximum purchase price
$291,610
Maximum housing payment
$2,325
Down payment needed
$10,206
Base loan amount
$281,404
Principal & interest
$1,810
FHA monthly MIP
$131
Property tax
$267
Homeowner's insurance
$117
HOA
$0
Total monthly payment
$2,325
Front-end / back-end DTI
31.0% / 39.0%

Your limiting factor is the 31% housing ratio. Estimates only — final qualification depends on credit, reserves, documented income and an automated underwriting decision, and your county's FHA loan limit may cap the loan amount.

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Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.

How FHA underwriters measure affordability

FHA uses two debt-to-income ratios, both based on gross (pre-tax) monthly income.

Front-end ratio — 31%

Your total housing payment divided by gross monthly income. The housing payment includes principal, interest, FHA mortgage insurance, property taxes, homeowner's insurance, flood insurance where required, and HOA dues.

Back-end ratio — 43%

Housing payment plus every other recurring monthly obligation: car loans, student loans, minimum credit card payments, personal loans, child support and alimony. Utilities, insurance premiums other than the escrowed ones, and groceries are not counted.

Going above 43%

The 31/43 pair is a benchmark, not a hard ceiling. When FHA TOTAL Scorecard returns an Approve/Eligible finding, lenders routinely close loans with back-end ratios in the low 50s. Manual underwrites need documented compensating factors — verified cash reserves, a minimal payment shock, or residual income — and HUD caps the ratio at 40/50 in most manual scenarios.

What can raise your number

  • Paying off a small installment loan with fewer than 10 payments remaining
  • Adding a non-occupant co-borrower (allowed on FHA purchases)
  • Down payment assistance that lowers the loan amount
  • Buying in a lower property-tax jurisdiction

Affordability questions

What DTI ratio does FHA allow?

FHA's benchmark ratios are 31% front-end (housing payment to gross income) and 43% back-end (all monthly debts to gross income). With compensating factors and an Approve/Eligible finding from TOTAL Scorecard, back-end ratios above 50% are regularly approved.

How much house can I afford with an FHA loan?

Take 43% of your gross monthly income, subtract your existing monthly debt payments, and the remainder is the maximum housing payment. That payment has to cover principal, interest, FHA mortgage insurance, property taxes, homeowner's insurance and any HOA dues.

Does FHA count student loans in DTI?

Yes. Under HUD Handbook 4000.1, lenders use the actual documented monthly payment reported on the credit report; if the payment is zero or deferred, 0.5% of the outstanding balance is used instead.

How this calculator works

FHA affordability calculator: methodology and assumptions

Maximum payment is derived from your gross monthly income and the selected debt-to-income ratio, less existing monthly debts. That payment is then solved back into a purchase price using rate, term, taxes, insurance and FHA mortgage insurance.

Assumptions used

  • • FHA total DTI generally up to 43%, with higher ratios possible with documented compensating factors
  • • 3.5% minimum down payment at a 580 or higher FICO
  • • Gross (pre-tax) qualifying income
  • • Annual MIP per HUD ML 2023-05 included in the payment
  • • County FHA loan limits cap the financeable amount

Limitations — what it does not include

  • • Automated underwriting findings, which control the real approval
  • • Income documentation and stability review
  • • Reserves, residual income and payment-shock review
  • • Employer bonus or variable income averaging rules
  • • Credit events such as collections or judgments

Data year 2026. Program figures last checked against their source on 2026-01-01. Sources: HUD 2026 loan limits, HUD Mortgagee Letter 2023-05, CFPB — mortgage basics. Results are estimates for planning only — not a quote, rate lock, approval, or commitment to lend. Your binding numbers appear on the Loan Estimate and Closing Disclosure.

Ready to see what you qualify for?

Talk with a licensed FHA broker about your scenario. Licensed in Florida and Colorado.

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Quick answers

How much house can I afford on $60,000 a year?
Roughly $230,000–$280,000 with minimal other debt, depending on rate, taxes, and insurance in your county.
Do deferred student loans count?
Yes. FHA uses the actual documented payment, or 0.5% of the outstanding balance if none is reported.
Does a co-signer help?
A non-occupant co-borrower's income is added to yours, which lowers the ratio and raises the price you qualify for.
How does this estimate affordability?
It works backward from your income, monthly debts, and a target debt-to-income ratio to a maximum housing payment, then to a price range.
Which DTI should I use?
Automated FHA approvals often reach the mid-50s with compensating factors, but budgeting to a lower ratio leaves room for real-life costs.
Should I use gross or net income?
Mortgage ratios use gross monthly income before taxes, which is why the qualifying number often exceeds a comfortable budget.
Do student loans count even if deferred?
Yes. FHA requires a payment to be counted even in deferment, which can meaningfully change your maximum price.
Does the estimate include MIP?
Yes, FHA mortgage insurance is part of the housing payment used in the ratio.
What about property tax differences by county?
Tax rates vary widely — a $400,000 home can carry very different payments across Florida and Colorado counties. Enter local figures.
Is affordability the same as approval?
No. Approval depends on credit, documentation, property, and the lender's underwriting, not on a ratio calculation alone.
How do I make my budget more conservative?
Lower the target ratio, add a maintenance line, and stress-test the payment against an insurance increase.
Included with your FHA estimate

Get your FHA Pre-Approval Summary.

Complete the short form and we send back a full FHA breakdown: your county loan limit, the minimum FHA down payment, financed upfront MIP, monthly mortgage insurance, and an estimated payment — plus whether down payment assistance can cover your cash to close.

  • Maximum FHA loan amount for your county
  • Minimum FHA down payment and cash-to-close estimate
  • Upfront and annual MIP included
  • Estimated monthly payment with taxes and insurance
Get my FHA estimate

Takes about 3 minutes · No obligation · Summary emailed and shown on screen

Illustration only, generated from the information you enter. Not a Loan Estimate, pre-qualification, commitment to lend, or approval. Subject to appraisal, credit and income review, FHA guidelines, and final lender approval. Equal Housing Opportunity.

FHA Estimate Summary
Purchase price
$385,000
Down payment (3.5%)
$13,475
Base loan amount
$371,525
Financed UFMIP (1.75%)
$6,502
Est. monthly payment
Shown in your summary

Sample figures for illustration only — not a quote, rate lock, offer of credit or commitment to lend. Simply Approved Mortgages · NMLS #2620881 · Equal Housing Opportunity

Weighing it up

Pros and cons of FHA financing

The trade-offs below are specific to FHA financing. Reviewed August 23, 2026 against HUD Handbook 4000.1 and the current HUD county loan limit file.

What works in your favor

  • 3.5% down from a 580 FICO, with 100% of the down payment giftable.
  • Seller contributions of up to 6% of the sale price toward closing costs.
  • No income caps, and higher DTI is possible with documented compensating factors.

What to plan around

  • Annual mortgage insurance for the life of the loan at 3.5% down.
  • County loan limits cap the financed amount, not the purchase price.
  • HUD minimum property standards apply at appraisal.
Worked example

The FHA numbers behind this page

A $425,000 example shows the cash and loan structure FHA produces before pricing is added.

The FHA numbers behind this page
Purchase price$425,000
FHA down payment at 3.5%$14,875
Base loan amount$410,125
Upfront MIP at 1.75%, financed$7,177
Conventional 20% down for comparison$85,000

Illustration only — not a quote, rate lock, offer or commitment to lend. Subject to lender underwriting and approval.

Document checklist

What documents you need for FHA financing

This is the set an FHA underwriter typically asks for. Having it ready before you write an offer is the single biggest difference between a two-week and a six-week file.

Identity and residency

  • Government-issued photo ID and Social Security number
  • Two-year residence history with landlord contact where you rented

Assets

  • Two months of statements for every account used for down payment or reserves
  • A signed gift letter plus the donor's source of funds for any gifted money
  • Retirement statements when reserves are drawn from those accounts

Property and credit

  • Fully executed purchase contract with all addenda
  • Homeowners insurance quote, plus flood coverage where required
  • Written explanation for credit events, plus bankruptcy or foreclosure paperwork if applicable
Income documentation

Self-employed vs. W-2 employed: what it means for your FHA loan

Income documentation is where most FHA files slow down, and it depends on how you are paid. FHA does not apply a different credit score, down payment or county limit to self-employed borrowers — it applies a different documentation standard.

FHA documentation differences between W-2 employed and self-employed borrowers
ItemW-2 employedSelf-employed
History requiredTwo-year employment history, with gaps explained. A job change inside the same field is usually fine.Generally two years of self-employment. A shorter history can sometimes be considered when there is documented prior experience in the same line of work.
How income is calculatedBase pay from pay stubs and W-2s. Bonus, overtime and commission generally need a two-year history to be averaged in.Net income from tax returns, averaged and adjusted for allowable add-backs such as depreciation. Write-offs that reduce taxable income also reduce qualifying income.
Documents that open the file30 days of pay stubs, two years of W-2s, and a verification of employment.Two years of personal and business returns, year-to-date P&L and balance sheet, and evidence the business is still operating.
Verification at closingThe employer is re-verified shortly before closing; do not change jobs mid-process without telling your loan officer.Continued existence of the business is re-verified close to closing, typically through a third-party or licensing check.
Most common delayUnexplained gaps, a new job with variable pay, or a VOE the employer never returns.A declining year over year, or a large deduction that removes the very income needed to qualify.
What we suggestGet the VOE moving on day one — it is the item most often outstanding at the end.Have your accountant produce the year-to-date P&L before you shop, so qualifying income is known before you write an offer.

If you are W-2 employed

  • Pay stubs covering the most recent 30 days
  • W-2 forms for the last two years
  • A verification of employment; HUD Handbook 4000.1 Update 18 tightened the written and electronic VOE rules, so expect the employer record to be verified directly
  • Documentation of bonus, overtime or commission income if you want it counted

If you are self-employed

  • Two years of personal federal tax returns, all schedules
  • Two years of business returns for a partnership, S-corp or C-corp, plus K-1s
  • A year-to-date profit and loss statement and balance sheet
  • Business license, CPA letter or equivalent evidence the business is active

General FHA documentation guidance per HUD Handbook 4000.1, including Update 18 changes to written and electronic verification of employment. Requirements vary by borrower, property, lender and program, and all loans are subject to lender underwriting and approval. Sources: HUD Handbook 4000.1

Simply Approved Mortgages Expert Insight
Affordability commentary · Last reviewed August 23, 2026

Qualifying amount and comfortable amount are different numbers

FHA's 31/43 benchmarks tell us what a file can support; they do not account for childcare, tuition, medical costs, or savings goals that never appear on a credit report. We routinely help borrowers set a target payment below their maximum, which also leaves room for rate movement between pre-approval and contract.

Our recommendation

Set your shopping budget below the maximum the ratios allow.

Simply Approved Mortgages · licensed mortgage broker · NMLS #2620881 · Equal Housing Opportunity
Ask Simply AI

Ask SAM anything about FHA loans in the United States

SAM is the Simply Approved Mortgages AI assistant, grounded in HUD Handbook 4000.1 and the 2026 HUD county limit file. It answers general FHA questions instantly. A licensed loan officer reviews every scenario before any terms are confirmed.

Hi — I'm SAM. Ask me about FHA loan limits, credit, mortgage insurance, down payment assistance or what an underwriter will need from you. General education only: I don't quote rates, and nothing I say is an offer or commitment to lend.

General information only — not advice, a quote, or an offer of credit.

Popular on this page

Talk to a licensed loan officer 877-813-7219

Ask Simply AI provides general educational information about FHA loan programs. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.

Where to go next

Continue with the FHA topic that matches where you are, or talk to a licensed loan officer about your own numbers.

How FHA loans work

What FHA insurance is and who it fits.

FHA requirements

Credit, income, DTI and property rules.

FHA credit score rules

580 vs 500–579 and what they change.

Down payment & assistance

3.5% minimum, gift funds and DPA options.

Mortgage insurance (MIP)

Upfront and annual MIP, and how long it lasts.

FHA loan limits

County-by-county HUD maximums.

FHA closing costs

What you pay and what a seller can cover.

FHA loan programs

203(b), 203(k), streamline, cash-out and more.

FHA calculators

Payment, affordability, MIP and break-even tools.

First-time buyer guide

Step-by-step from budget to closing.

Start My Approval Contact a licensed loan officer Submitting a request is not an application, approval or commitment to lend.
Down Payment Assistance

The FHA DPA Program

Short on cash to close? Ask about the FHA DPA, offered through Simply Approved Mortgages: 2.5%, 3.5%, or 5% of your loan amount toward your down payment and closing costs, structured as a 10-year repayable second lien at your first-mortgage rate + 2%. FICO 580+, primary residence only — it's an option on every loan program on this site.

How it works

Three tiers. Real money toward your home.

  • 2.5% / 3.5% / 5% of the lesser of purchase price or appraised value
  • Pairs with FHA, Conventional, VA, and USDA first mortgages
  • 10-year repayable second lien — no silent forgivable strings
  • Available to FICO 580+ primary-residence buyers
Full DPA program details
Not available in: New York, Washington, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa. All loans subject to underwriting approval and program guidelines.
Amount calculator & eligibility checker

See how much assistance you may qualify for

Enter a purchase price, pick an assistance tier, and confirm property and residency. Results are illustrative — not a quote or commitment.

Simply Approved Mortgages DPA

DPA amount calculator & eligibility checker

Estimate 3.5% assistance on the lesser of price or appraisal, layered over a 30-year fixed FHA first mortgage.

Estimated DPA
$14,000
3.5% of $400,000
2nd-lien P&I
$174
10-yr · 8.500%

Amount calculator

Assistance tier
Lesser of price or appraisal
$400,000
DPA at 3.5%
$14,000
2nd-lien term
10-year fixed, repayable
2nd-lien rate
8.500%
Monthly P&I
$174/mo

Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear only on your Loan Estimate and Closing Disclosure.

Eligibility checker

Documentable qualifying income?

Willing to complete homebuyer education before closing?

Property in NY, WA, USVI, Guam, MP, or AS?

Answer each question above to see your preliminary result.

See Today's Rates

Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.

Preliminary self-check only — no credit pulled. Not a quote, lock, offer, or commitment to lend. Simply Approved Mortgages is not affiliated with HUD, FHA, VA, USDA, FHFA, or any government agency. Equal Housing Opportunity. NMLS# 2620881.

Our pricing philosophy

Transparency. Simplicity. Consumer Choice.

At Simply Approved Mortgages, we believe borrowers deserve clear information, professional guidance, and access to competitive mortgage solutions.

Our company is built around a straightforward philosophy: provide transparent mortgage guidance, maintain a consistent compensation structure on most transactions, and help borrowers make informed financing decisions based on their individual needs and goals.

For many mortgage transactions, Simply Approved Mortgages typically operates using a lender-paid compensation structure of approximately 1.50%. Actual compensation may vary based on lender requirements, loan program, state regulations, loan amount, and other transaction-specific factors.

We believe transparency helps consumers better understand the mortgage process and make informed decisions when comparing financing options.

Our promise

Mortgage financing should be understandable, transparent, and focused on helping consumers make informed decisions.

Our goal isn't to maximize compensation per transaction. Our goal is to build lifelong client relationships through transparency, service, and competitive mortgage solutions.

Why compensation transparency matters

Understanding all aspects of the financing process

Many borrowers spend significant time comparing interest rates, but may be less familiar with how mortgage companies and loan originators are compensated.

Compensation structures can vary among lenders, mortgage brokers, banks, credit unions, and other mortgage providers. Compensation is only one component of a mortgage transaction and should be evaluated alongside interest rates, APR, lender fees, discount points, closing costs, loan features, and overall loan suitability.

At Simply Approved Mortgages, we believe consumers benefit from understanding all aspects of the financing process before making a decision.

Interactive illustration

See how compensation scales by loan amount

Move the slider to compare a hypothetical 1.50% Simply Approved Mortgages compensation structure with a hypothetical 2.75% used by some other lending options. For educational purposes only.

$400,000
$50,000$2,000,000
Typical market comp at 2.75%$11,000
Simply Approved Mortgages at 1.50%$6,000
Potential closing cost difference
Hypothetical impact on lender compensation only
~$5,000

For illustration only. Figures are hypothetical and not a quote, offer, rate lock, or guarantee of savings. Lender compensation is one component of closing costs; actual loan terms, interest rates, fees, APR, and total costs vary by program, loan amount, credit qualifications, property, occupancy, state, and market conditions.

Illustrative compensation comparison

Comparing a hypothetical 1.50% to a hypothetical 2.75%

The example below compares a hypothetical 1.50% compensation structure used by Simply Approved Mortgages to a hypothetical 2.75% structure used by some other lending options, solely for educational purposes.

Loan AmountSimply Approved Mortgages (1.50%)Other lending options (2.75%)Difference
$250,000$3,750$6,875$3,125
$350,000$5,250$9,625$4,375
$500,000$7,500$13,750$6,250
$750,000$11,250$20,625$9,375
$1,000,000$15,000$27,500$12,500

These examples are illustrative only and are intended to demonstrate how different compensation percentages may produce different compensation amounts based on loan size.

These examples do not represent borrower fees, interest rates, APR, closing costs, loan terms, pricing, or savings, and should not be interpreted as a guarantee that any borrower will receive lower costs or better loan terms.

Our commitment to borrowers

Our goal is to provide

  • Professional mortgage guidance
  • Transparent communication throughout the loan process
  • Access to a broad range of mortgage programs
  • Competitive financing options based on borrower qualifications
  • A streamlined application and approval experience
  • Support for homebuyers, homeowners, and real estate investors
A team-focused approach

Support for every type of borrower

Whether you're purchasing a home, refinancing an existing mortgage, consolidating debt, or financing an investment property, our team is committed to helping you evaluate available options and make informed decisions.

Compare more than just the interest rate

When evaluating mortgage options, borrowers should consider the complete financing package

  • •Interest Rate
  • •Annual Percentage Rate (APR)
  • •Lender Fees
  • •Discount Points
  • •Closing Costs
  • •Loan Features and Flexibility
  • •Prepayment Terms
  • •Product Eligibility Requirements
  • •Customer Service and Support

The most appropriate mortgage solution depends on each borrower's individual financial circumstances, objectives, qualifications, and preferences.

Important Disclosure: Simply Approved Mortgages LLC typically utilizes a lender-paid compensation structure of approximately 1.50% on many mortgage transactions; however, compensation may vary based on lender requirements, loan program, state law, loan amount, borrower qualifications, and other transaction-specific factors. Compensation is only one component of mortgage pricing and does not, by itself, determine interest rates, APR, lender fees, closing costs, loan terms, or overall borrower costs. The information provided on this page is for general educational and informational purposes only and should not be construed as mortgage advice, a commitment to lend, an offer to extend credit, a rate quote, a loan approval, or a guarantee of savings. All mortgage loans are subject to credit approval, underwriting requirements, property approval, and program eligibility guidelines. Borrowers should carefully review all disclosures, including the Loan Estimate and Closing Disclosure, before proceeding with any mortgage transaction. Simply Approved Mortgages LLC • NMLS #2620881 • Equal Housing Opportunity.

Ready when you are

Get pre-qualified in minutes — no obligation.

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Simply Approved Mortgages LLC | NMLS #2620881 — a mortgage broker, not a direct lender. Submitting this form is an inquiry only; it is not an application, quote, pre-approval, approval or commitment to lend. All loans are subject to lender underwriting and approval. Equal Housing Opportunity. See our Privacy Notice.

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