The math lenders run on $100,000
Lenders start from your gross monthly income, the pay before taxes come out. $100,000 a year is $8,333 a month, or about $48.08 an hour if you work 40 hours a week.
On FHA with an automated approval, your house payment can use up to 46.9% of that, which is $3,908 a month. Your house payment and your other monthly debts together can reach 56.9%, or $4,742. With a $300 car payment, $4,442 would be left for housing under the 56.9% line, so the 46.9% line is the one that sets your price. That's why debts up to about $834 a month don't lower your number at this income.
The house payment covers principal and interest at a 5.75% rate on a 30-year fixed loan, property taxes at Florida's statewide estimate of 0.74% of the price a year, $283 a month for homeowners insurance, and FHA mortgage insurance.
Your price by monthly debts
Each row uses a 650 credit score and $5,000 in savings. The first column needs no savings for the down payment.
| Other debts each month | FHA 100% financing, $0 down | FHA with $5,000 saved | Conventional with $5,000 saved |
|---|---|---|---|
| $0 | $533,000 | $142,000 | $166,000 |
| $300 | $533,000 | $142,000 | $166,000 |
| $600 | $533,000 | $142,000 | $166,000 |
The FHA and Conventional columns stop where $5,000 runs out as a down payment: FHA wants 3.5% down and Conventional wants 3%. Closing costs come on top, and on FHA the seller can pay up to 6% of the price toward them. FHA 100% financing takes the down payment ceiling away by covering the 3.5% with down payment assistance.
What raises or lowers the number
- A 600 credit score still reaches $533,000 on FHA, though Conventional doesn't open until 620. At 720 the top price stays near $533,000, and Conventional's mortgage insurance gets cheaper.
- With $20,000 saved instead of $5,000, FHA reaches $535,000 on your own down payment.
- A parent or grandparent with $1,500 a month in Social Security or SSI who co-signs raises the reachable price to about $560,000, where FHA's limit for most Florida counties caps it.
- An eligible veteran, service member or surviving spouse reaches about $742,000 with VA and $0 down.
- USDA's tighter 29% and 41% ratios put a $0 down rural home at about $313,000 on this income.
Overtime, a second job, a spouse's pay and non-taxable income can all raise these numbers. Put your own figures into the QualRate calculator, or call AAA Capital Funding at 888-601-8344 and we'll run yours on FHA, VA, USDA and Conventional.