Question 1

How much house can I afford on my income?

Accepted Answer

A common guideline is that your total housing payment (principal, interest, taxes, insurance, HOA) should not exceed 28–31% of your gross monthly income. Your total monthly debts including housing typically should stay under 43–50% of income, depending on the loan type.

Question 2

What is a debt-to-income ratio and why does it matter?

Accepted Answer

Your debt-to-income (DTI) ratio is your total monthly debt payments divided by your gross monthly income. Lenders use it to measure how much of your income goes toward debt. Most conventional loans require a DTI under 45%. FHA allows up to 50% in some cases. A lower DTI means more borrowing power.

Question 3

Does the affordability calculator account for property taxes and insurance?

Accepted Answer

Yes. The calculator estimates a full PITI payment — principal, interest, taxes, and insurance. Property tax rates vary by location, so you can adjust the estimate to match your target area. Kern County averages roughly 1.1–1.2% annually.

Question 4

How much do I need for a down payment?

Accepted Answer

It depends on the loan type. VA loans allow 0% down for eligible veterans. USDA loans offer 0% down in eligible rural areas. FHA requires 3.5% with a 580+ credit score. Conventional loans start at 3% down. The more you put down, the lower your monthly payment and the less you pay in mortgage insurance.

Question 5

Can my spouse's income be included even if they are not on the loan?

Accepted Answer

Generally, only the income of borrowers on the loan application is counted toward qualification. However, in community property states like California, a non-borrowing spouse's debts may be counted, which can affect your DTI. Dan can walk you through the specific rules for your situation.

Question 6

Should I get pre-approved before starting to shop?

Accepted Answer

Yes. A pre-approval shows sellers you're a qualified buyer and gives you a firm budget so you don't waste time looking at homes outside your range. Dan issues pre-approvals within 1–3 business days with no impact to your credit at the initial review stage.

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