Mortgage Prequalification Estimator
Get a quick estimate of how much house you can afford based on your income, debts, and down payment. Compare Conventional and FHA qualification side by side. This estimate uses standard DTI guidelines and is not a commitment to lend.
Prequalification Estimator Inputs
Enter Your Financial Details
Your Prequalification Estimate
Important: This is an estimate only, not a commitment to lend. Actual qualification depends on credit history, employment verification, property appraisal, and lender-specific requirements.
Conventional — Max Home Price
- Maximum Home Price (Conventional)
- $284,042
- Max Monthly Payment
- $1,982.72
- Loan Amount
- $234,042.36
- Down Payment
- $50,000.00 (17.6%)
- Front-End DTI
- 28.0% / 28.0%
- Back-End DTI
- 35.1% / 36.0%
- Binding Constraint
- front-end DTI
FHA — Max Home Price
- Maximum Home Price (FHA)
- $315,399
- Max Monthly Payment
- $2,195.47
- Loan Amount
- $265,399.17
- Down Payment
- $50,000.00 (15.9%)
- Front-End DTI
- 31.0% / 31.0%
- Back-End DTI
- 38.1% / 43.0%
- Binding Constraint
- front-end DTI
Payment Breakdown Comparison
Debt-to-Income Ratio
Your DTI of 38.1% qualifies for Conventional & FHA.
Conventional vs FHA Qualification
| Conventional | FHA | |
|---|---|---|
| Max Home Price | $284,042 | $315,399 |
| Loan Amount | $234,042.36 | $265,399.17 |
| Down Payment | $50,000.00 (17.6%) | $50,000.00 (15.9%) |
| Monthly P&I | $1,479.31 | $1,677.50 |
| Monthly Tax | $284.04 | $315.40 |
| Monthly Insurance | $82.85 | $91.99 |
| Monthly PMI / MIP | $136.52 | $110.58 |
| Max Monthly Payment | $1,982.72 | $2,195.47 |
| Front-End DTI Limit | 28.0% | 31.0% |
| Back-End DTI Limit | 36.0% | 43.0% |
How Mortgage Prequalification Works
Mortgage prequalification gives you a preliminary estimate of how much you can borrow based on your income, debts, and available down payment. Lenders use two key ratios — the front-end and back-end debt-to-income (DTI) ratios — to determine how much housing payment you can afford.
The front-end DTI measures your housing costs as a percentage of your gross monthly income. The back-end DTI includes all monthly debts (housing, car payments, student loans, credit card minimums). Lenders require both ratios to be within program-specific limits.
DTI Ratio Limits by Loan Program
| Loan Program | Front-End DTI | Back-End DTI |
|---|---|---|
| Conventional | 28% | 36% |
| FHA | 31% | 43% |
| VA | N/A | 41% |
| USDA | 29% | 41% |
Prequalification vs Preapproval
Prequalification
- Based on self-reported financial info
- No credit check required
- Quick estimate — minutes to complete
- Not a commitment to lend
- Good starting point for house hunting
Preapproval
- Verified income, assets, and credit
- Requires hard credit inquiry
- More thorough — days to process
- Conditional commitment from lender
- Carries weight with sellers
How to Improve Your Qualification
Increase Buying Power
- Pay down existing debts to lower your DTI
- Increase income (raise, side income, co-borrower)
- Save a larger down payment
- Improve credit score for a better rate
Lower Your DTI
- Pay off credit card balances
- Avoid new debt before applying
- Consolidate high-interest debts
- Ask about DTI exceptions for strong reserves
Frequently Asked Questions
What is mortgage prequalification?
Mortgage prequalification is a preliminary assessment of how much a lender might be willing to lend you. It is based on self-reported financial data — income, debts, and available down payment. Unlike preapproval, prequalification does not require documentation or a hard credit inquiry.
Does prequalification guarantee I will get a mortgage?
No. Prequalification is an estimate only. Actual approval depends on verified income, employment history, credit report, property appraisal, and lender-specific underwriting guidelines. It is a useful starting point, but not a commitment to lend.
Why can I qualify for more with an FHA loan?
FHA loans have more lenient DTI limits (31/43% vs 28/36% for Conventional). This means a larger portion of your income can go toward housing costs, resulting in a higher maximum qualification. However, FHA loans require mortgage insurance for the life of the loan (if down payment is less than 10%).
How does my credit score affect prequalification?
Your credit score affects the interest rate you receive. A lower rate means lower monthly payments, which means you can qualify for a higher home price within the same DTI limits. This calculator applies rate adjustments by credit tier: excellent (-0.25%), good (baseline), fair (+0.50%), poor (+1.25%).
What debts should I include in "Monthly Debts"?
Include all recurring monthly obligations that appear on your credit report: car payments, student loans, credit card minimum payments, personal loans, child support, and alimony. Do not include utilities, groceries, subscriptions, or other expenses that do not appear on a credit report.
Should I apply for preapproval after prequalification?
Yes. Once you have a general idea of your budget from prequalification, getting preapproved is the recommended next step. Preapproval involves a full credit check and income verification, giving you a stronger position when making offers on homes. Most sellers and real estate agents expect buyers to have a preapproval letter.