How Much House Can You Afford?
The 28/36 rule, down payments and the hidden costs of owning a home.
October 21, 2026 · 6 min read
Before you shop for homes, know your budget.
The 28/36 rule
Keep housing costs below 28% of gross income and total debt below 36%.
Down payment
Conventional loans allow as little as 3% down, FHA 3.5% and VA 0%. Putting down 20% avoids private mortgage insurance.
Do not forget
- Property taxes and homeowners insurance
- HOA dues
- Maintenance, about 1% of the home value per year
- Closing costs of 2-5%
Get pre-approved with several lenders to compare offers.