Enter your financial information below to estimate how much home you may qualify for. This calculator uses standard debt-to-income guidelines used by most conventional mortgage lenders.

Combined income if applying with a co-borrower.
Car loans, student loans, credit card minimums — not utilities or groceries.
Example rate only — APR will differ. Use the note rate quoted by your lender.
Use ~0.35% of purchase price for Mobile County, ~0.40% for Baldwin.

What You May Qualify For
Estimated Maximum Purchase Price
Maximum Loan Amount
Maximum Monthly Payment (PITI)
DTI Analysis
Gross Monthly Income
Front-End Limit (28% of income)
Back-End Limit (43% minus existing debts)
Binding Constraint
Comfortable Budget (Conservative)
Recommended Max Purchase Price
Monthly Payment at Comfortable Price

How Lenders Determine Affordability

Mortgage lenders use two debt-to-income (DTI) ratios to evaluate how much you can borrow:

Front-End Ratio (Housing Ratio): Your total monthly housing payment — principal, interest, taxes, and insurance (PITI) — divided by your gross monthly income. Most conventional lenders allow a maximum of 28–31%.

Back-End Ratio (Total DTI): Your total monthly debt payments (housing + all other debts) divided by gross monthly income. Most conventional lenders allow a maximum of 43–45%. FHA and VA loans may allow up to 50% in some cases.

The calculator uses the more restrictive of the two ratios as your binding constraint.

Maximum vs. Comfortable: Being approved for a loan amount doesn’t mean you should borrow it. The “Comfortable Budget” figure — 85% of the calculated maximum — leaves margin for:

  • Homeownership costs not captured in PITI (maintenance, repairs, HOA, utilities)
  • Income fluctuation or unexpected expenses
  • Life changes after purchase

What This Calculator Doesn’t Include

  • PMI: If your down payment is under 20%, add $50–$150/month to the PITI estimate depending on your loan amount and credit score
  • HOA fees: Common in Baldwin County — can range from $100 to $1,200+/month in some communities
  • Flood insurance: Required for properties in AE/VE flood zones — can add $150–$500+/month
  • Credit score impact: Your credit score affects both your rate and whether you qualify; a lower score means a higher rate, which reduces your buying power

This calculator provides estimates for planning purposes only. Actual loan qualification depends on your credit score, employment history, assets, lender guidelines, and loan type. Consult a licensed Alabama mortgage lender for an actual pre-approval. Equal credit opportunity is available to all — we do not discriminate on any basis prohibited by law.

Know your budget — now find the right home.

Once you have a budget range in mind, the next step is a conversation about what's available in your price range across Baldwin and Mobile County. Get in touch and we'll talk through the market.

Contact Milton Christ, REALTOR®

Milton Christ, REALTOR® | naf Cash Certified | Keller Williams Alabama Gulf Coast | AL License #172097