Can You Afford to Buy a Home? Tools to Help You Decide
Buying a home is a big step. But how do you know if you’re financially ready?
Whether you’re a first-time buyer, planning for the future, or rebuilding after hardship, this guide will walk you through simple, free tools and strategies to help you decide if buying a home fits into your budget and your goals.
At B’resheet, we believe homeownership is not just about property—it’s about stability, legacy, and building up your community. Let’s explore how to move forward with confidence.
Why It Matters: More Than Just a Mortgage
Homeownership is often the largest financial decision you’ll make. It impacts your:
- Monthly budget
- Long-term savings
- Family security
- Community investment
Before making this move, it’s important to get a full picture of what you can afford—not just now, but for the years to come.
Tools to Help You Know If You Can Afford a Home
1. Use a Mortgage Affordability Calculator
A simple tool can help you estimate how much house you can afford based on income, debt, down payment, and loan terms.
👉 Try HUD’s Housing Affordability Calculator.
2. Calculate Your Debt-to-Income (DTI) Ratio
Lenders look at your DTI to see if you can handle a mortgage. Here’s how to check yours:
DTI = Total Monthly Debt Payments ÷ Gross Monthly Income
Aim for 36% or lower. If yours is higher, don’t worry—there are still options. We’ll walk with you to explore them.
Down Payment and Closing Costs: What to Expect
- Most traditional loans need 3%–20% down.
- You’ll also need to budget for closing costs (usually 2%–5% of the home’s price).
Tip: Some programs offer down payment assistance—check with your local HUD agency for support in your area.
Common Home Affordability Questions
How much should I spend on a house based on my income?
A good rule is the 28/36 rule:
- No more than 28% of your income on housing
- No more than 36% of total debt
Can I buy a home with bad credit?
Yes, there are FHA loans and other programs for buyers with lower credit scores. Reach out for a free consultation—we’re here to help.
Are there homebuying programs for low-income families?
Absolutely. Many states and cities offer first-time buyer grants, low-interest loans, and housing counseling. Check your eligibility at https://www.hudexchange.info/programs/811-pra/pra-program-eligibility-requirements/
What if I’m not ready yet?
That’s okay. Building a strong plan now sets you up for success later. Start with budgeting and learning—your time will come.
Next Steps: What You Can Do Today
✅ Download: Home Affordability Checklist (PDF)
✅ Learn More: Estate Planning Basics
✅ Start Saving: Wealth-Building for Beginners
Talk to Us: Have questions or want a free homeownership consultation?
Frequently Asked Questions:
Can You Afford to Buy a Home?
Q: What income do I need to buy a home?
A: It depends on your area, loan type, and credit. Use an affordability calculator to get a personal estimate.
Q: How do I save for a down payment?
A: Start small, automate savings, and explore grant programs. We have saving strategies here.
Q: What credit score do I need?
A: FHA loans accept scores as low as 580. Higher scores give you better rates.
Q: What if I’m retired or on fixed income?
A: You can still qualify! Let’s review your options together—housing is for all generations.