how much house can i afford fha loan calculator

To determine how much house you can afford with an FHA loan, you can use an FHA loan calculator.

Here are the steps to calculate:

1. Determine your monthly income: Add up your gross monthly income, including any bonuses, commissions, or overtime pay you receive.

2. Calculate your debt-to-income ratio (DTI): Add up all of your monthly debt payments, including credit cards, car loans, student loans, and any other outstanding debts. Divide this total by your gross monthly income. FHA loans typically require a DTI ratio of no more than 43%.

3. Determine your maximum mortgage payment: Use the FHA loan calculator to estimate your maximum monthly mortgage payment, based on your income, DTI ratio, and other factors.

4. Estimate your maximum home price: Based on your maximum mortgage payment, you can use the FHA loan calculator to estimate the maximum home price you can afford, taking into account factors such as your down payment, interest rate, and mortgage term.

Keep in mind that FHA loans require a minimum down payment of 3.5% of the home's purchase price and may have additional fees such as mortgage insurance premiums.