# How much house can I afford?

By Godfrey Aguwa Jr (@godfreyaguwajr) · Published 2026-10-28

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What you can get pre-approved for and what you can actually live with are two different numbers. As an independent mortgage broker, I run this math daily with first-time buyers, and the gap between a lender's ceiling and a comfortable budget is wider than most people expect. Here's the framework I use to help clients land on their right figure — not just the maximum one.

The most common shortcut is the **28/36 rule**: a budgeting guideline that says no more than 28% of your gross monthly income should go to housing costs, and no more than 36% should go to all your debts combined. It's a rule of thumb, not a legal requirement — but it's the cleanest way to estimate affordability before you ever talk to a lender.

## How the 28/36 rule sets your budget

Start with your **gross monthly income** — what you're paid before taxes, health insurance, or retirement contributions come out. The rule splits that income into two checks: your housing payment should stay under 28%, and your total debt (housing plus car, student, and credit card payments) should stay under 36%.

So on $6,000 a month gross, that caps housing at **$1,680** and all debts combined at **$2,160** (Rocket Mortgage). Your other debts eat directly into what's left for a mortgage — which is why two buyers with identical incomes often qualify for very different homes.

![calculator budget planning](https://convex.voce.com/api/storage/c1e89cd4-71a3-4372-8b1a-d123581c619b)

## Why the bank's number isn't your number

Here's the part most buyers miss. Lenders can push debt-to-income (DTI) ratios well above the 28/36 guideline — **FHA loans**, for example, use standard benchmarks of 31% for housing and 43% for total debt, and can stretch higher with strong compensating factors like a good credit score or cash reserves. That approval is a ceiling, not a target.

A $480,000 approval that leaves your emergency fund drained isn't affordable. One client I worked with was approved for a higher-priced home but chose to buy below it to keep savings intact — a reminder that the rule is a starting point for your own budget, not just a lender's box (New American Funding).

## The hidden costs that change the math

The payment you budget for is never just principal and interest. The 28% figure should include **property taxes, homeowners insurance, and mortgage insurance**, plus HOA dues when they apply. Omit those and your real monthly cost can land far above the number you planned for.

On top of the payment, set aside for **closing costs, a down payment, and ongoing maintenance** — repairs, utilities, and routine upkeep that never show up on a lender's worksheet. The clearest affordability test is honest: if a payment fits within 28% of your income AND leaves room for the rest of your life, it's your number.

## What to do next

Run your own 28/36 numbers before you shop. Total your debts, estimate your full housing payment, and be honest about the lifestyle you want to keep. If the math feels tight, a strong credit score and a larger down payment can open up even more breathing room — and an experienced broker can show you which loan programs fit your actual situation.