What counts as monthly debt?

Car payments, student loans, and credit-card minimums. Rent you will drop after you close is not counted the same way. Groceries and utilities are not on the debt list. HOA, tax, and insurance are in the housing payment, not in “other debts.”

Is 40% total debt share of income the most a lender will allow?

No. 40% is a starting point so you are not shopping a house the loan cannot support. Total debt share is the house payment plus car payments, student loans, and card minimums, as a percent of monthly income. Many files go a little higher or a little lower. Your file is still credit, property, and investor specific.

Aon Center granite sign at night, with the tower rising behind the garden

Egan Financial Group LLC · NMLS 2647764

How much house can I afford?

Type monthly income, other debts, and down payment. The rate starts at HousingWire’s 30-year conventional average. Total debt share of income starts at 40% — house payment plus car, cards, and student loans. Change it. This is a worksheet, not an approval.

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What this number is telling you

Being able to make a payment and being approved for a loan are not the same thing. This page is the payment side: income, debts, down payment, and a rate you typed. Credit, the property, and the investor still have to fit.

How much house can I afford?: Enter your monthly income, other monthly debts, down payment, and the rate you want to model. The worksheet uses a total debt share of income you can change (it starts at 40%). That is the house payment plus car, cards, and student loans, as a percent of monthly income. The rate starts at HousingWire’s 30-year conventional print. The result is an estimated purchase price, not an approval from Egan Financial Group LLC.
What counts as monthly debt?: Car payments, student loans, and credit-card minimums. Rent you will drop after you close is not counted the same way. Groceries and utilities are not on the debt list. HOA, tax, and insurance are in the housing payment, not in “other debts.”
Is 40% total debt share of income the most a lender will allow?: No. 40% is a starting point so you are not shopping a house the loan cannot support. Total debt share is the house payment plus car payments, student loans, and card minimums, as a percent of monthly income. Many files go a little higher or a little lower. Your file is still credit, property, and investor specific.

Egan Financial Group LLC NMLS 2647764. Estimate only. Not a commitment to lend.