|Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debt service obligations, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a lower down payment.
Total monthly payments, including housing and other debt service should generally not exceed 41% of your gross monthly income. Housing expenses, including principal, interest, insurance and taxes, should usually not exceed 29% of your gross monthly expenses. Give one of our friendly loan officers a call, and we'll help you determine exactly how much you can afford.