The 28/36 rule is the standard guideline: spend no more than 28% of gross income on housing and 36% on all debt. Here's how to calculate your real number.
$50,000Min. Loan
$2M+Max Loan
580+Min. Credit Score
The amount you can borrow depends on several factors: your credit score, income, existing debt obligations, and the lender's maximum loan limits. Understanding these factors before you apply helps you set realistic expectations and find the right lender.
How Much Can You Borrow? By Credit Score
Rates verified May 2026 · Updated weekly
Credit Score Range
Typical Loan Amount
Typical APR Range
Best Lenders
760–850 (Excellent)
3–4x annual income
Best available rates
All lenders
720–759 (Very Good)
3–4x annual income
Near-best rates
All lenders
680–719 (Good)
2.5–3.5x annual income
Slightly higher rates
Most lenders
640–679 (Fair)
2–3x annual income
Higher rates, FHA option
FHA lenders, some conventional
580–639 (Poor)
1.5–2.5x annual income
FHA only (3.5% down)
FHA-approved lenders
Key Factors That Determine Your Loan Amount
The 28% Rule
Your monthly housing payment (PITI: principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income.
The 36% Rule
Your total monthly debt payments (housing + all other debt) should not exceed 36% of your gross monthly income.
Down Payment
A larger down payment reduces your loan amount, monthly payment, and may eliminate PMI (required when down payment is below 20%).
Credit Score
Mortgage rates vary significantly by credit score. A 760 score may get a rate 1–2% lower than a 620 score, saving tens of thousands over the loan term.
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Frequently Asked Questions
How much mortgage can I afford on a $75,000 salary? +
Using the 28% rule: $75,000 / 12 = $6,250/month gross income. 28% of $6,250 = $1,750/month maximum housing payment. At current rates (~7%), that corresponds to roughly a $260,000–$280,000 mortgage.
What is the 28/36 rule for mortgages? +
The 28/36 rule states that your monthly housing costs should not exceed 28% of gross monthly income, and your total monthly debt payments should not exceed 36% of gross monthly income.
How much house can I afford with a $100,000 salary? +
Using the 28% rule: $100,000 / 12 = $8,333/month gross income. 28% = $2,333/month maximum housing payment. At 7% over 30 years, that corresponds to roughly a $350,000–$370,000 mortgage.
Does my credit score affect how much mortgage I can get? +
Yes. A higher credit score qualifies you for lower rates, which means you can afford more house for the same monthly payment. A 1% rate difference on a $300,000 mortgage saves approximately $60,000 in interest over 30 years.
What is the minimum down payment for a mortgage? +
Conventional loans: 3–5% minimum. FHA loans: 3.5% (with 580+ score). VA loans: 0% (for eligible military). USDA loans: 0% (for eligible rural areas). A 20% down payment eliminates PMI.
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Conventional loans require a minimum score of 620. FHA loans accept scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA and USDA loans have no official minimum but most lenders require 580–620.
Conventional loans require as little as 3% down. FHA loans require 3.5% with a 580+ score. VA and USDA loans offer 0% down for eligible borrowers. A 20% down payment eliminates PMI.
As of May 2026, the average 30-year fixed mortgage rate is approximately 6.74%. Rates vary by lender, credit score, and loan type. Compare at least 3 lenders to find the best rate for your situation.
A common guideline is to keep your monthly housing payment below 28% of gross monthly income. Your total debt payments (including the mortgage) should stay below 36–43% of income. Use our mortgage calculator for a personalized estimate.