Affordability Calculator
How much home can you afford?
Compare Conventional, FHA, and USDA loans side by side. Real credit-score adjustments, local tax defaults, and full mortgage insurance math.
Active-duty or veteran? Use our VA Calculator for specialized VA underwriting math.
Your Finances
Income and debts
Enter your total household income before taxes and your existing monthly debt payments. The calculator uses these to determine the maximum monthly payment you can qualify for.
Your total household income before taxes.
Car loans, student loans, credit card minimums, alimony, etc. Do not include rent or future mortgage.
Your credit score affects your interest rate and mortgage insurance cost.
Learn more: How your credit score affects buying power
Your credit score is one of the biggest factors in the interest rate you'll receive. A borrower with a 760+ score might get a rate 0.5% to 0.75% lower than someone with a 640 score. On a $300,000 loan over 30 years, that difference means roughly $100 to $150 more per month and $35,000 to $55,000 more in total interest paid over the life of the loan.
For conventional loans, the impact is even more direct. Fannie Mae and Freddie Mac apply Loan-Level Price Adjustments (LLPAs) based on your credit score and down payment. These are upfront fees that lenders typically roll into your interest rate, which is why you see your rate adjust as you change the credit score dropdown above.
Real-world example: A buyer earning $85,000/year with a 760+ credit score might qualify for a home priced around $350,000. The same buyer with a 660 score might qualify for only $310,000 due to the higher rate.
Your credit score affects your interest rate. A higher score means a lower rate and more buying power. This calculator adjusts the rate automatically based on your selected credit score range using Fannie Mae's Loan-Level Price Adjustment (LLPA) schedule.
Loan Details
Loan assumptions
Adjust these to match your situation. Defaults are set for a typical West Michigan purchase.
Conventional: min 3%
National 30-year fixed average from the Federal Reserve. Talk to a lender for a personalized quote.
Base: 6.85% + credit adj: 0.16% = 7.01%
Fallback rate · as of 2026-04-03
Learn more: Down payment requirements by loan type
Down payment requirements vary significantly by loan program. Conventional loans require as little as 3% down, but anything less than 20% triggers Private Mortgage Insurance (PMI). FHA loans require 3.5% down with a 580+ credit score (10% if below 580). USDA loans offer true 0% down payment for homes in eligible rural areas.
Real-world example: On a $300,000 home, a conventional loan at 5% down means $15,000 out of pocket. FHA at 3.5% means $10,500. USDA at 0% means $0 down but the home must be in a USDA-eligible area and your household income must be within program limits.
Grand Rapids avg (homestead)
West Michigan avg
Learn more: PMI, MIP, and mortgage insurance explained
Mortgage insurance protects the lender if you default on the loan. Different loan programs handle it differently:
Conventional PMI: Required when your down payment is less than 20%. Annual cost ranges from 0.3% to 1.5% of the loan amount depending on your credit score and down payment. The good news: PMI automatically cancels when your loan balance reaches 78% of the original home value.
FHA MIP: FHA charges two types of mortgage insurance: an upfront premium of 1.75% of the loan (typically financed into the loan amount) and an annual premium of 0.50% to 0.55% paid monthly. If your down payment is 10% or more, MIP cancels after 11 years. Otherwise, it lasts the life of the loan.
USDA Guarantee Fee: USDA charges a 1% upfront guarantee fee (financed) and 0.35% annual fee. These are generally lower than FHA or conventional PMI.
Learn more: Debt-to-income ratio (DTI)
Your debt-to-income ratio is the percentage of your gross monthly income that goes to debt payments, including your future mortgage. Lenders use DTI as a key qualification metric. Most conventional and FHA lenders cap at 43% DTI, while USDA caps at 41%.
Real-world example: If you earn $7,000/month gross and have $500/month in existing debts, a lender using a 43% DTI cap would allow up to $3,010/month total debt. That means your housing payment (PITI + any mortgage insurance) can be up to $2,510/month.
This calculator provides estimates for educational purposes only. Actual loan terms, eligibility, and qualifying income are determined by your lender. Consult a licensed lender for official loan qualification. Interest rates shown are national averages and may not reflect the rate you will receive.
Compare Loan Types
| Conventional | FHA | USDA | VA → | |
|---|---|---|---|---|
| Min down | 3% | 3.5% (10% if credit < 580) | 0% | 0% |
| Mortgage insurance | PMI (drops at 78% LTV) | 1.75% upfront + 0.50–0.55%/yr MIP | 1% upfront + 0.35%/yr | No PMI. Funding fee (waivable) |
| DTI limit | 43% | 43% | 41% | 41% + residual income test |
| Min credit score | 620 | 500 (580 for 3.5% down) | 640 (typical) | No VA minimum (620 typical lender overlay) |
| Pros | Flexible. PMI cancels. No geographic limits. | Low down. More lenient credit. Assumable. | Zero down. Lowest fees. Low rate. | Zero down. No PMI. Competitive rates. |
| Cons | PMI if < 20% down. Rate depends on credit. | MIP may last life of loan. Loan limits. | Geographic & income limits. Slower process. | VA eligibility required. Funding fee on first use. |
Why this calculator
What most online calculators miss
Most affordability calculators online assume a single loan type and ignore the details that actually determine what you qualify for. This one is different.
1. Credit score actually changes your rate
Conventional loans use Loan-Level Price Adjustments (LLPAs) that penalize lower credit scores with higher rates. A 640 score pays roughly 0.75% more than a 760+ score on the same loan. Most calculators use a single "average" rate and call it a day. This one adjusts the rate in real time as you change your credit score range, using the actual Fannie Mae LLPA schedule.
2. Mortgage insurance differs by program
PMI on a conventional loan is not the same as MIP on an FHA loan, and neither works like the USDA guarantee fee. Each program has different upfront costs, annual rates, and cancellation rules. This calculator computes the exact monthly cost for each program and shows you when (or if) it goes away.
3. Local tax and insurance defaults
National calculators use national averages for property tax and insurance. Michigan property taxes are based on taxable value (roughly 50% of market value), not the full purchase price, and rates vary significantly by municipality. This calculator defaults to actual Grand Rapids homestead millage rates and West Michigan insurance averages so your estimate matches your real market from the start.
Important: This calculator provides estimates for educational purposes only. Actual loan terms, eligibility, and qualifying income are determined by your lender. Consult a licensed loan officer for an official qualification. Interest rates shown are national averages and may not reflect the rate you will receive.