First-time home buyer calculator
This first-time home buyer calculator assumes a small down payment and PMI, which is typical for first purchases, and finds the price that fits your income.
Low down payments are possible
You do not need 20% down. Conventional loans start at 3% to 5% down, and FHA loans at 3.5% with a qualifying credit score. The trade-off is mortgage insurance, which adds to the monthly payment until you build enough equity.
Down-payment assistance programs from state and local housing agencies can help, often with income limits and a homebuyer-education requirement. Ask a lender or your state housing finance agency what you qualify for.
Costs beyond the mortgage
Budget for closing costs, commonly 2% to 5% of the price, moving costs, immediate repairs and a cash reserve. A home also adds utilities, maintenance and often HOA dues. A common rule is to set aside 1% of the home’s value each year for maintenance.
Home price by income
With $15,000 down, a 6.75% rate, $300 a month of other debt and a 30-year term, here is the price each income supports under the 28/36 guideline.
| Gross income | Max monthly housing | Home price | Monthly payment |
|---|---|---|---|
| $60,000 | $1,400 | $172,000 | $1,397 |
| $80,000 | $1,867 | $230,000 | $1,865 |
| $100,000 | $2,333 | $287,000 | $2,325 |
| $120,000 | $2,800 | $345,000 | $2,793 |
| $150,000 | $3,500 | $432,000 | $3,495 |
| $200,000 | $4,667 | $577,000 | $4,665 |
How rates and debts move the answer
At your income of $85,000, each full point of interest rate changes the price you can afford by about $18,000. Paying off $300 a month of other debt would raise it by about $0.
| Scenario | Home price |
|---|---|
| Rate 5.75% | $264,000 |
| Rate 6.75% (base) | $244,000 |
| Rate 7.75% | $226,000 |
| No other monthly debt | $244,000 |
Frequently asked questions
How much do I need to buy my first home?
You need the down payment plus closing costs, usually 2% to 5% of the price, and a reserve. A low-down-payment loan reduces the first number but adds mortgage insurance.
Is PMI always required?
On conventional loans with less than 20% down, yes. It can be removed once you reach enough equity.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.