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

Credit Score RangeTypical Loan AmountTypical APR RangeBest Lenders
760–850 (Excellent)3–4x annual incomeBest available ratesAll lenders
720–759 (Very Good)3–4x annual incomeNear-best ratesAll lenders
680–719 (Good)2.5–3.5x annual incomeSlightly higher ratesMost lenders
640–679 (Fair)2–3x annual incomeHigher rates, FHA optionFHA lenders, some conventional
580–639 (Poor)1.5–2.5x annual incomeFHA 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.

How to Maximize Your Loan Amount

Improve your credit score — Even a 20-point improvement can unlock significantly higher loan amounts and lower rates.
Pay down existing debt — Reducing your debt-to-income ratio is one of the fastest ways to qualify for more.
Add a co-signer — A co-signer with strong credit and income can dramatically increase your borrowing power.
Apply with multiple lenders — Different lenders have different underwriting criteria. Pre-qualifying with 3–4 lenders gives you the best picture of your options.

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.

Related Guides

Mortgage Calculator → Best Mortgage Rates 2026 → FHA Loan Requirements → VA Loan Requirements → First-Time Homebuyer Guide →

Advertiser Disclosure: WiseIQ may earn a referral fee from some lenders and financial products on this page. This does not influence our editorial ratings or recommendations. Our reviews are independently researched and editorially independent.

Sources & Methodology: WiseIQ's editorial team researches and fact-checks all content using primary sources including the Consumer Financial Protection Bureau (CFPB), Federal Reserve G.19 Consumer Credit Report, myFICO Credit Education, and lender websites for current rates and terms. Last reviewed: April 2026. How we rank products.