"How much house can I afford?" is the question every DFW buyer types into Google before they ever call a lender — and most online calculators give a number that's either wildly optimistic or unnecessarily conservative. The real answer depends on four things: your income, your existing debt, your down payment, and today's mortgage rate. Here's how to calculate it accurately, and why the number a lender gives you often looks different from what a generic calculator spits out.
The Two Ratios That Actually Determine Your Number
Lenders don't just look at your income — they look at two specific ratios:
- Front-end ratio: Your proposed monthly housing payment (principal, interest, taxes, insurance, and any HOA) divided by your gross monthly income. Many programs target 28-31% here, though this flexes by loan type.
- Back-end ratio (debt-to-income, or DTI): Your total monthly debt payments, including the new housing payment, divided by gross monthly income. Conventional loans often cap around 45-50%, while FHA can allow higher DTI for well-qualified borrowers.
Your existing debts — car payments, student loans, credit cards, other loans — eat directly into your back-end ratio, which is why two people with identical incomes can qualify for very different loan amounts. My full DTI guide breaks this down in more detail.
Sample Affordability Snapshot at Today's Rates
| Gross Annual Income | Est. Max Monthly Housing Payment* | Rough Price Range (varies by taxes/debt) |
|---|---|---|
| $60,000 | ~$1,400–$1,550 | Entry-level DFW suburbs |
| $85,000 | ~$1,980–$2,200 | Garland, Mesquite, Forney range |
| $110,000 | ~$2,570–$2,850 | Broader move-up DFW range |
| $140,000+ | ~$3,270–$3,620 | Collin County / move-up neighborhoods |
*Estimates use a 28-31% front-end ratio target at current mid-6% rates before accounting for existing debt, property taxes, insurance, HOA, or down payment size. Actual figures vary by borrower — this is illustrative, not a quote.
Why Property Taxes Change the Math in Texas
Texas has no state income tax, but property tax rates run higher than many out-of-state buyers expect — often 2-2.7% of assessed value annually depending on the county and city. That gets baked into your monthly escrow payment alongside principal, interest, and insurance, which is why the same loan amount produces a noticeably different payment in Rockwall versus Dallas County. My property tax guide shows how this plays out by county.
Four Ways to Increase What You Can Afford
- Pay down or pay off a debt before applying. Eliminating a $300/month car payment can meaningfully raise your approved loan amount by improving your DTI.
- Improve your credit score. A higher score often means a lower rate, which directly increases your buying power at the same monthly payment. See my credit score guide.
- Explore down payment assistance. Programs through TSAHC, TDHCA, and city-level grants can free up cash you'd otherwise need for a down payment, indirectly expanding what fits your budget. See my DPA guide.
- Compare loan types. FHA, conventional, and VA loans allow different DTI limits and pricing, which can shift your max affordable price by tens of thousands of dollars.
Get Your Real Number, Not an Estimate
Every online affordability calculator uses generic assumptions. I pull your actual credit, income, and debt profile and run it against real loan programs to give you a precise number — not a ballpark — for buyers in Garland, Mesquite, Irving, Rockwall, Forney, and across DFW. Call or text me at 469-545-7180, or start at bondmortgagesolutions.com to find out exactly what you can afford before you fall in love with a listing that's out of reach.
Frequently Asked Questions
How much house can I afford making $70,000 a year in Texas?
As a rough starting point, many lenders use 28-36% of gross monthly income as a target housing payment, though your exact number depends on existing debts, credit score, down payment, and loan program. On $70,000 a year, that generally lands in a specific affordable price range once property taxes and insurance are factored in. I run your exact numbers for free — call or text me at 469-545-7180.
What is the 28/36 rule for buying a house?
The 28/36 rule is a general guideline suggesting your housing payment stay under 28% of gross monthly income, and your total debt payments (including housing) stay under 36%. It's a useful starting point, but many loan programs, including FHA, allow higher debt-to-income ratios for well-qualified borrowers. I'll show you where you actually fall — visit bondmortgagesolutions.com.
Does my student loan or car payment affect how much house I can afford?
Yes. Every recurring monthly debt — student loans, car payments, credit cards, other loans — counts toward your debt-to-income ratio, which directly limits your maximum mortgage payment. Paying down or paying off a debt before applying can meaningfully increase your buying power. I can show you the exact impact — call or text me at 469-545-7180.
How much do I need saved to buy a house in DFW?
It depends heavily on loan type. VA loans can require $0 down, FHA loans require as little as 3.5% down, and conventional loans can go as low as 3-5% down for qualified buyers, plus closing costs typically running 2-5% of the purchase price. Down payment assistance programs can reduce upfront cash further. I'll map out your specific savings target — call or text me at 469-545-7180 or visit bondmortgagesolutions.com.
Want your real affordability number?
I'm Bond Peter Njoku (NMLS #2670329), and I calculate your exact buying power using your real income, debt, and credit — not generic online assumptions. Text or call me at 469-545-7180, message me on WhatsApp, or fill out my contact form.