Mortgage
How Much House Can You Afford? The Real Math
·By Julia Kovalskiy
"How much house can I afford?" is the first question every buyer asks — and the answer is really two answers: what you can be approved for, and what you'll be comfortable paying. As a broker licensed in Texas and Florida, here's how to figure out both, without ending up house-poor.
What lenders use: DTI
Approval largely comes down to your debt-to-income (DTI) ratio — the share of your gross monthly income that goes to debt payments, including your new mortgage. Lenders look at your total monthly debts (the new housing payment plus car loans, credit cards, student loans) against your gross income. Many programs stretch DTI toward the mid-40s percent, and some non-QM programs higher, but a lower DTI leaves you breathing room.
What your payment actually includes: PITI
Your monthly housing payment is more than principal and interest. It's PITI:
- Principal
- Interest
- Taxes (property taxes)
- Insurance (homeowners, plus mortgage insurance if applicable)
This matters enormously in Texas and Florida, where property taxes (higher in Texas) and insurance (higher in Florida) can add hundreds to your monthly payment — so two identically priced homes can cost very different amounts to own.
Approved vs comfortable
A lender might approve you for a payment that technically fits your DTI but leaves nothing for savings, travel, or a slow month. The smarter question is what payment fits your real life — after retirement contributions, childcare, and the buffer you want. I always build a budget around the number you'll be happy paying, not just the maximum you can pay.
What moves your number
- Down payment — more down lowers your loan and payment (and can drop mortgage insurance).
- Interest rate and term — a shorter term raises the payment but cuts lifetime interest.
- Taxes and insurance — location-specific and often underestimated.
- Your other debts — paying down a car or card can meaningfully raise your buying power.
Frequently asked
Frequently asked questions.
Related guides
- Pre-Qualification vs Pre-Approval vs Commitment: What's the Difference?The difference between mortgage pre-qualification, pre-approval, and a loan commitment — what each proves, which sellers trust, and when you need them. For buyers in TX & FL.
- Down Payment Assistance in Texas & Florida: How It WorksHow down payment assistance (DPA) works in Texas and Florida — grants and second-lien programs, who qualifies, and how to pair DPA with FHA, conventional, or VA loans.
- What Credit Score Do You Need to Buy a House?The credit score you need to buy a house by loan type — FHA, VA, conventional, and non-QM — plus how your score affects your rate and quick ways to improve it. TX & FL.
- Second Home Financing: How to Buy a Vacation HomeHow second home financing works — down payment, how lenders define a second home vs investment property, and program options. For vacation-home buyers in TX & FL.
- How Student Loans Affect Buying a House (and How to Still Qualify)How student loans affect mortgage qualifying — how lenders count IBR vs deferred payments in your DTI, and programs that help high-debt buyers qualify. For TX & FL buyers.
Explore related programs
- ConventionalThe most widely-used residential loan in the country. Flexible on property type, competitive on overall cost, and available as low as 3% down for qualified buyers.
- First-Time BuyerBuying your first home in Texas or Florida. Conventional, FHA, and down payment assistance options — built for buyers new to the process.
Let's find your comfortable number
Tell me your income, debts, and target areas, and I'll build a real budget — the payment you'll be approved for and the one you'll actually be happy with.
Written by
Julia Kovalskiy
Residential Mortgage Loan Originator · NMLS #2661068 · Licensed in Texas & Florida
I'm an Austin-based mortgage broker sponsored by C2 Financial Corporation, working with first-time and self-employed buyers across Texas and Florida. I shop 120+ lender partners to match your real situation to the loan built for it — and when you call me, you reach me.
Julia Kovalskiy is a residential mortgage loan originator (NMLS #2661068) licensed in Texas and Florida. This article is educational and is not a commitment to lend; programs, terms, and eligibility vary by lender and individual circumstances.