How Much Home Can I Afford?
Enter your income, debts, and down payment to estimate the maximum California home price you can afford.
Your Financial Details
You Can Afford Up To
$344,942
Loan Amount
$244,942
Max Monthly
$4,875
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Disclaimer: This calculator provides estimates for educational purposes only. Actual qualification depends on credit score, loan program, property type, and other factors. Contact Save Financial for a personalized pre-approval — Sponsored by Save Financial, Inc. (NMLS #377740).
How to Calculate Home Affordability in California
Your home affordability depends on four main factors: gross income, existing debts, down payment, and the interest rate you qualify for. Lenders use your debt-to-income ratio (DTI) — total monthly debt payments divided by gross monthly income — as the primary affordability measure.
Most conventional loans cap DTI at 43-45%, while FHA allows up to 50% with compensating factors. VA loans are more flexible. In California, where median home prices exceed $750,000, higher income or larger down payments are typically needed compared to other states.
Tips to Increase What You Can Afford
Pay down existing debts before applying — every $500 reduction in monthly debt obligations increases your buying power by roughly $80,000–$100,000. Improve your credit score to qualify for lower rates. Consider a larger down payment to reduce the loan amount. Explore programs with higher DTI limits like FHA (50%) or bank statement loans.
Save Financial analyzes all 35 of our loan programs to find the one that maximizes your specific buying power. Contact us for a free consultation, or call (888) 703-1840.
Last updated: July 2026. Sources: FHFA, HUD, VA, CalHFA, CFPB, California DRE, California Association of Realtors. All loans subject to credit approval. Rates subject to change.