First-Time Home Buyer Calculator

Find your max affordable home price, the right loan program, state down payment assistance programs, and how long it will take to save — all in one calculator.

$
$
$
Max Affordable Home Price
$316,472
Recommended: Conventional 5%Lower rate than FHA, PMI cancels at 80% LTV.
Est. Monthly Payment
$2,550
Down Payment Needed
$15,824
Savings Shortfall
Ready!
Months to Save
Now!

Comparing loan programs on a $316,472 home. Best option highlighted.

ProgramDown PaymentP&IPMI/MIPTotal Monthly30-yr Total Cost
FHA 3.5%3.5% ($11,077)$2,041$142$2,184$802,575
Conv 3%3.0% ($9,494)$2,017$192$2,208$804,550
Conv 5%5.0% ($15,824)$1,950$150$2,100$771,940
Conv 20%20.0% ($63,294)$1,600$1,600$639,386
★ Recommended based on your inputs. Conv 3%/5% PMI cancels at 80% LTV; FHA MIP lasts full term if down < 10%.

Complete cash needed to close — beyond just the down payment.

Down Payment: $15,824
Closing Costs (~3%): $9,494
Cash Reserves (3 mo): $7,650
Inspection: $450
Moving: $2,500
Initial Furniture: $5,000
Down Payment
$15,824
5% — Conventional 5%
Closing Costs
$9,494
~3% of purchase price
Cash Reserves
$7,650
3 months of PITI
Move-In Costs
$7,950
Inspection + moving + furniture
TOTAL NEEDED
$40,918
All-in cash required
Savings Gap
$15,918
Additional savings needed

How to Use This First-Time Buyer Calculator

Enter your income, savings, existing debts, and credit score range. The calculator instantly shows your maximum affordable home price, recommends the best loan program, estimates your monthly payment, and tells you how long until you can buy.

Quick Calculator

Enter your Annual Income (gross, before taxes), Current Savings (total available for down payment and closing costs), Monthly Debts (car loans, student loans, minimum credit card payments — not rent), and your Credit Score range. Select your state and whether you're a veteran or active duty service member.

Advanced: Program Comparison

The Program Comparison tab shows all available loan options side by side — FHA 3.5%, Conventional 3%, Conventional 5%, Conventional 20%, and VA if eligible. You can see exactly how much each costs monthly and over 30 years.

Professional: Full Budget

The Full Budget tab shows every dollar you'll need: down payment, closing costs, 3-month cash reserves, inspection, moving costs, and initial furniture. This is the real number you need to save before buying.

How Max Affordable Home Price Is Calculated

Monthly Income = Annual Income ÷ 12
Max Monthly Housing = Monthly Income × 36% DTI
Max Monthly P&I = Max Monthly Housing − Monthly Debts

Max Loan = Max P&I × [(1 − (1 + r)^−360) ÷ r]
Max Home = Max Loan ÷ (1 − Down Payment %)

Example: $75,000 income, $300/mo debts, 6.75% rate
Monthly Income = $6,250
Max Housing = $6,250 × 36% = $2,250
Max P&I = $2,250 − $300 = $1,950
Max Loan ≈ $304,000
Max Home (3.5% FHA down) ≈ $315,000

This uses the standard 36% front-end and back-end DTI rule. Some lenders allow up to 43-50% DTI with strong compensating factors (high credit score, large reserves), but 36% is a conservative, lender-safe target.

Example: First-Time Buyer in Austin, TX

Sarah: $72,000 income, $22,000 savings, fair credit

Annual Income$72,000
Monthly Debts (car)$380/mo
Savings$22,000
Credit Score680–719 (Fair)
Recommended ProgramFHA 3.5% Down
Max Affordable Home~$285,000
Down Payment (3.5%)$9,975
Closing Costs (est.)$8,250
Reserves Needed$5,400
Total Cash Needed~$26,000
Savings Gap$4,000
Months to Save (at $500/mo)~8 months

Texas also has the My First Texas Home program offering up to 5% DPA — Sarah may qualify, potentially eliminating the gap entirely.

Frequently Asked Questions

FHA requires just 3.5% down with a 580+ credit score and is more lenient on DTI ratios. However, FHA mortgage insurance (MIP) lasts the life of the loan if you put less than 10% down. Conventional 3% (HomeReady/Home Possible) requires 620+ credit but PMI cancels at 80% LTV — usually saving money over time if your score is good.
Many programs define "first-time buyer" as someone who hasn't owned a home in the past 3 years. This means even previous homeowners may qualify after a few years of renting. FHA and VA loans have no first-time buyer requirement at all. State DPA programs typically require first-time buyer status by the 3-year rule.
Credit score tiers for conventional loans: 760+ earns the best available rate; 720-759 is very good with minimal premium; 680-719 adds about 0.25-0.5% to your rate; 620-679 can add 0.5-1.5% and higher PMI. Improving from 679 to 680 or 719 to 720 can meaningfully reduce your rate and monthly payment.
Yes — FHA, Conventional, and VA all allow gift funds for down payments from family members, with proper documentation (gift letter stating no repayment expected). FHA allows 100% of down payment to be gifted. Conventional requires some of your own funds if putting down less than 20%. USDA also allows gift funds for eligible properties.
HUD-approved housing counselors are trained advisors who provide free or low-cost guidance on buying a home, down payment assistance programs, credit improvement, and avoiding predatory lending. Many DPA programs require completing a homebuyer education course. Call 800-569-4287 or visit HUD.gov to find a counselor near you.

Related Calculators

Sources & References