If you’re planning to buy a home, one of the first questions you’ll ask is: “How much house mortgage can I get?” Understanding your borrowing limit helps you shop for homes within your budget and avoid disappointment later.
In this post, we’ll explain how lenders determine your mortgage amount, what factors influence it, and how you can estimate your own limit — with or without a calculator.
How Do Lenders Decide How Much Mortgage You Qualify For?
Lenders use several key financial indicators to determine how much mortgage you can afford:
| Income | Your gross monthly income determines your ability to pay. |
| Credit Score | Higher scores lead to better loan terms and higher limits. |
| Debt-to-Income Ratio (DTI) | Lenders prefer DTI under 43%, though some allow up to 50%. |
| Down Payment | A larger down payment increases your buying power. |
| Interest Rates | Lower rates mean lower monthly payments and potentially a larger loan. |
Quick Formula: Estimate Your Maximum Mortgage
A common way to estimate how much mortgage you can get is by using the 28/36 rule :
- 28% Rule : Your monthly mortgage payment shouldn’t exceed 28% of your gross monthly income .
- 36% Rule : Your total monthly debt payments (including mortgage) should be less than 36% of your gross income .
Example:
If your household earns $8,000/month before taxes:
- 28% × $8,000 = $2,240 max mortgage payment
- 36% × $8,000 = $2,880 max total debt payment
This means you could likely qualify for a mortgage where the monthly payment (including taxes, insurance, and PMI) is around $2,240 , assuming no other major debts.
Step-by-Step: How to Calculate Your Mortgage Limit
- Add Up All Monthly Debt Payments
- Car loans, student loans, credit card minimums, etc.
- Calculate Gross Monthly Income
- Include all sources of income for everyone on the loan.
- Determine Your DTI
- Total monthly debt ÷ gross monthly income = DTI percentage
- Use an Online Mortgage Calculator
- Plug in your income, debts, down payment, and location to estimate your loan amount.
Average Mortgage Amounts (U.S. 2025)
As of early 2025:
- Average new mortgage amount : ~$420,000
- Median home price : ~$400,000
- Typical down payment : 7–10% (varies by loan type)
With a 30-year fixed mortgage at 6.3% , a buyer with a $2,500 monthly budget could qualify for a $375,000 loan (before taxes and insurance).
Tips to Increase Your Mortgage Limit
- Improve your credit score
- Pay off existing debt
- Increase your down payment
- Apply with a co-borrower (e.g., spouse)
- Choose a longer loan term (e.g., 30 years vs. 15 years)
Final Thoughts
Knowing how much mortgage you can get helps you set realistic expectations when house hunting. While every lender has different criteria, understanding your income, debts, and down payment gives you a strong starting point.
Use the 28/36 rule , online calculators, and pre-approval from a lender to get the clearest picture of your home-buying budget.
Frequently Asked Questions (FAQs)
Q1: How much mortgage can I get with a $100,000 salary?
Based on income alone, you may qualify for a mortgage between $300,000 and $400,000 , depending on debts, down payment, and interest rate.
Q2: Does pre-approval tell me exactly how much mortgage I can get?
Yes, pre-approval gives a detailed estimate based on your financial history and current market conditions.
Q3: Can I get a mortgage without a down payment?
Some loans like VA and USDA offer zero-down options, but they have specific eligibility requirements.
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