Experts say you should understand what you can afford before you start looking for a house. Use this calculator to get an idea of how much you can borrow, and explore which ZIP Codes have a typical home price that will fit your budget.
This calculator is designed for conforming loans. These are the most common mortgages, but they are limited size.
In Riverside and San Bernardino counties, the cap is $647,200. In San Diego County the cap is $879,750. In Ventura County the cap is $851,000. In Los Angeles and Orange counties, the cap is $970,800, meaning you can buy a $1.2 million house with a 20% down payment.
If you are looking to buy a house that requires a mortgage above these caps, you’ll need to take out something called a jumbo loan. You can still use the calculator to get a sense of what you might be able to afford, though it will be less accurate.
How much you ultimately will be approved for depends on several factors specific to your situation. Multiple mortgage brokers said they find lenders will generally approve you for conforming loans if your debt-to-income ratio doesn’t exceed 45%.
For these mortgages — those backed by government-controlled mortgage giants Fannie Mae and Freddie Mac — it’s possible to be approved with a debt-to-income ratio up to 50%, but you’ll probably need to show that you are a really solid borrower, such as one with a really good credit score and significant savings.
If you have a low credit score, it may make sense to look at FHA loans instead. You can find FHA specific calculators here.