🏠 What income percentage is safe for housing and car payments?
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🏠 Affordability Reality
A first-time buyer on Reddit asked if spending 42% of their take-home pay on a mortgage and car payment is too much. Lenders use gross income to approve you for large FHA loans. But your real budget depends on your take-home pay. Use this calculator to see how much you save by capping your housing and car costs at a safe percentage of your net income.
⚖️ Income & Debts
The original poster has a $500 car payment and wants a $2,400 mortgage. This brings their total debt to 42% of their take-home pay. They want to keep it under 40%. Enter your own car payment and target ratio below to see what fits your budget.
🏦 Loan Assumptions
The buyer plans a 3.5% down payment on an FHA loan. To figure out how much house your target mortgage payment buys, we account for interest, property taxes, insurance, and PMI (Private Mortgage Insurance).
🔗 See Also
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📊 Results
Verdict
Reduce budget
Monthly Savings
Proposed Ratio
Target Mortgage
Proposed Home Price
Target Home Price
Calculator updated by heyfinfam (v26.10.0) · View history
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Disclaimer: This content and any calculations provided are for informational purposes only. The views, calculations, and methodologies expressed are those of the author and do not necessarily reflect those of this platform. Not financial advice. Users are solely responsible for any decisions made based on this information.