How Much Home Can I Afford?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
Not Sure How Much House You Can Really Afford? Start Here.
1. Use the 30% Rule to Set a Smart Monthly Budget
A solid starting point is the 30% rule—this means your total monthly housing expenses (including mortgage, taxes, and insurance) should be no more than 30% of your gross income. So if you earn $6,000/month before taxes, your max housing cost should land around $1,800. This keeps your finances flexible and your stress levels low.
Ready to see what that looks like in real numbers? Calculate your Conventional Purchase Loan Payment now to see how different home prices affect your monthly payment and whether you’re within that 30% comfort zone.
2. Don’t Overlook Hidden Costs of Homeownership
It’s easy to forget the extras that come with owning a home. Things like utility bills, HOA fees, lawn care, appliance repairs, and the occasional leaky faucet. These costs can sneak up on you, especially if you’re transitioning from renting. Build some cushion into your budget—$100–$300/month is a safe range for unexpected home expenses.
If you’re a first-time buyer working with a tight budget, FHA loans can help you get into a home with as little as 3.5% down. Calculate your FHA Purchase Loan Payment now to see your complete monthly costs including mortgage insurance, taxes, and insurance.
3. Balance Your Budget With Long-Term Goals
Yes, buying a home is a big deal. But it’s not your only financial goal. Make sure your future mortgage leaves room for savings, retirement contributions, emergency funds, and a little fun. A house shouldn’t feel like a financial straitjacket—it should be a solid step in building long-term wealth and peace of mind.
If you’re a veteran, you might have more breathing room in your budget than you think. Calculate your VA Purchase Loan Payment now to see how zero down payment and no mortgage insurance can help you afford more home while keeping monthly costs manageable.
Looking at homes in eligible rural areas? Calculate your USDA Purchase Loan Payment now to explore 100% financing options that could help you afford a home without draining your savings.
Want Help Running the Numbers?
At Stairway Mortgage, we specialize in helping first-time buyers find their perfect price point—not too high, not too low, just right for building wealth and breathing room.
📘 Download our homebuyer guides to learn how lenders calculate your buying power.
📊 Check Current Rates to see what’s available today.
🧮 Explore all our Loan Calculators to run different affordability scenarios.
🎯 Take the Discovery Quiz to find your perfect loan match.
Ready to Take Your First Step?
Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.
- Takes just 5 minutes
- Tailored results based on your answers
- No credit check required
Need a Pre-Approval Letter—Fast?
Buying a home soon? Complete our short form and we’ll connect you with the best loan options for your target property and financial situation—fast.
- Only 2 minutes to complete
- Quick turnaround on pre-approval
- No credit score impact
Got a Few Questions First?
Let’s talk it through. Book a call and one of our friendly advisors will be in touch to guide you personally.
Schedule a CallRelated Posts
