≈ $15,000 down
Ongoing housing costs
PMI is included below since the down payment is under 20%.
Estimated total
$1,958/mo
$1,839 payment + $119 PMI
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By Alex Diaz · How we calculate this
Twenty-eight and thirty-six - those are the two numbers most lenders build their approval decision around, housing costs capped near the first and total debt near the second, and they're the same numbers this calculator leans on. Enter the home price, down payment, rate, and term, and it works out the monthly payment, then checks that payment against your income and whatever debt you're already carrying.
These key factors affect starter home affordability
Income and expenses
Income sets the ceiling, but it's rarely the number that ends up mattering most. Existing debt - a car payment, student loans, credit cards - eats into that ceiling before the new mortgage payment even enters the picture, so we weigh everything you've logged together, not the mortgage against your paycheck alone.
Credit score
Rate matters more for a first-time buyer than it might later on, simply because a low down payment is so common at this stage - less equity cushion means the rate itself is carrying more of the weight. A stronger credit score is usually the difference between a manageable payment and a tight one.
Low down payment options
You don't necessarily need 20% down to buy a starter home. Conventional loans go as low as 3% down, FHA loans 3.5%, and plenty of states run their own first-time buyer assistance programs on top of that. The trade-off: anything under 20% down typically means paying mortgage insurance every month until you've built enough equity to drop it, so it's worth running the math both ways rather than assuming a smaller down payment is free.
Room to grow into it
How long do you actually plan to stay? A starter home is usually meant as a stepping stone, not a forever house, so it's worth weighing what's affordable right now against your realistic timeline before you sell or refinance into something bigger.
Property taxes, insurance, and HOA fees
Principal and interest are only part of the monthly bill. Property taxes, homeowners insurance, and HOA dues if the home has any all stack on top, and together they add up to more than most first-time buyers expect - pad your estimate for them instead of budgeting down to the penny of the loan payment alone.
How to use your results
Your risk score reflects the mortgage payment at the price, down payment, rate, and term you entered. Try adjusting each one to see how it moves the needle:
- Down payment - see how a lower down payment plus mortgage insurance compares to waiting to save more.
- Loan term - compare a 15-year term's higher payment against a 30-year term's lower one.
- Existing debt - add any car payments, student loans, or credit cards you're carrying for a more realistic number.
Ways to increase how much starter home you can afford
- Look into first-time buyer assistance programs in your state, which can lower the upfront cash needed.
- Pay down existing debt to improve your debt-to-income ratio before applying for a mortgage.
- Work on your credit score - even a modest improvement can unlock a meaningfully better rate.
- Add a second income source if you have one - joint applications are evaluated together.
More housing calculators
Peer comparison data
Bureau of Labor Statistics (median income by age), Experian (credit score by age)
Used by the “how you compare” figures in the sidebar, not by the costs on this page.
Every figure on this site, with its source and the date it was last verified
How you compare
Income
Credit score
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