Own It Group
Strategic real estate and mortgage guidance.
Broker BRE: 01518677 | NMLS: 967779
Own It Group
Purchasing Power Executive Summary
User Guide & Instructions
1. Start Here
Start with income and debts so the calculator knows your budget, then choose the loan type, FICO, down payment, DTI, rate, and property costs.
2. Financial Foundation
Enter total household gross monthly income before taxes. Include salary, bonuses, and stable side income.
3. Loan Strategy
Select the loan type, enter FICO, choose down payment, and set the max DTI. Conventional works best with stronger credit; FHA is more flexible; VA is for eligible veterans.
4. Property Costs
Keep DTI realistic: 740+ FICO ≈ up to 50%, 700–739 ≈ 45%, 660–699 ≈ ~43%. Higher DTI reduces approval strength.
Conventional Loan
Best for strong credit. PMI depends on FICO and down payment. PMI drops at 20% equity.
FHA Loan
Lower credit allowed. 3.5% down. Includes upfront MIP and monthly MIP that usually stays for the life of the loan.
VA Loan
0% down possible. No monthly MI. Includes a one-time funding fee that can be financed. May be waived for disabled veterans.
Property Costs
Taxes, insurance, and HOA directly impact your buying power. Higher HOA lowers the price you qualify for.
2. Monthly Debts
Include recurring debts like car payments, student loans, credit cards, and personal loans. Do not include rent or utilities.
3. Loan Type
Conventional uses FICO and LTV to estimate PMI. FHA uses upfront and monthly MIP. VA estimates the funding fee and assumes no monthly MI.
4. Back-End DTI
Add taxes, insurance, and HOA if any. HOA directly reduces buying power because it is included in the qualifying housing payment.
Know your number before you shop.
This calculator estimates maximum purchase price using income, debts, loan type, rate, down payment, taxes, insurance, HOA, and mortgage insurance.
Henry Cossio
Real Estate Broker | Mortgage Banker | Investor
BRE: 01518677 | NMLS: 967779
714.920.4809 · [email protected]