How Expensive Of A House Can I Buy May 2026

Some experts stretch this to 4x or 5x income if you have zero debt and a large down payment. 2. The 28/36 Rule (Standard Lender Guideline)

To figure out how much house you can afford "on paper," you can use a few standard financial "rules of thumb" that lenders and financial advisors use to assess budget safety. 1. The 3x Annual Income Rule (Simplest) This is a quick way to find a target purchase price. how expensive of a house can i buy

Your monthly housing costs—including principal, interest, taxes, and insurance (PITI)—should not exceed 28% of your gross monthly income. Some experts stretch this to 4x or 5x

If you earn $100,000, your target home price is $300,000. If you earn $100,000, your target home price is $300,000

The house price should not exceed three times your annual gross income. 4. The "Divide by 0.008" Rule (Quick Payment Estimate)

Spend no more than 30% of your gross monthly income on your mortgage payment.