Edited and reviewed by CEO Vatche Saatdjian — 30+ years of experience — Expert on FHA loans
Calculate how much house you can afford based on your income, debts, down payment, and current mortgage rates in Nevada.
Home affordability is the maximum home price you can comfortably purchase based on your income, debts, down payment, and other financial factors. Lenders use the debt-to-income (DTI) ratio to determine how much mortgage you qualify for.
Most conventional loans require a DTI ratio of 43% or less, while FHA loans can go up to 50% with strong compensating factors like good credit or cash reserves.
Housing Expense Ratio
Your monthly housing costs (mortgage, taxes, insurance, HOA) should not exceed 28% of gross monthly income
Total Debt Ratio
All monthly debt payments (housing + car loans + credit cards + student loans) should not exceed 36% of gross income
Your pre-tax monthly income determines your maximum monthly housing payment. Higher income = higher buying power.
Car loans, student loans, credit card minimums, and other recurring debts reduce how much you can afford. Pay down debts to increase affordability.
A larger down payment reduces your loan amount and monthly payment, allowing you to afford a more expensive home. FHA loans require just 3.5% down.
Lower interest rates mean lower monthly payments, increasing your buying power. A 1% rate difference can save hundreds per month.
Better credit scores qualify for lower interest rates. FHA loans accept scores as low as 580, but higher scores (680+) get better rates.
Nevada has relatively low property taxes, but insurance costs vary. In Las Vegas and Henderson, budget 1-1.3% of home value annually for taxes and insurance combined.
Eliminate credit card balances and pay down car loans to lower your DTI ratio
Side income, bonuses, and raises count toward qualification if documented for 2+ years
Pay bills on time, reduce credit utilization, and dispute errors to boost your score
20% down eliminates PMI and reduces monthly payments significantly
Get pre-approved in minutes and start shopping for your Nevada home with confidence