For Sellers
For Buyers
Mortgage 101
Foreclosure Information
Calculators and Tools
Real Estate Glossary
Community Information
Consumer Links
Free Listing Updates
Contact Me


Jonson Tran Nguyen

Broker Associate - Realtor
CalBRE #01840344
130 E. Huntington Drive
Arcadia, CA 91006
Direct: 626.456.1911

How Much Can You Afford?


Here's how to figure out your price range.

Qualification ratios are set by the lender that state your housing expense to income, and housing expense plus other debts to income, cannot exceed a specified number. Many lenders use a 28% housing expense to income and a 36% housing expense plus debts to income. Ratios will vary from lender to lender and each application is handled on an individual basis.


Housing Expenses

Your monthly housing costs include the mortgage principle, interest, taxes and insurance (PITI).

  • Usually to qualify for conventional loans, housing expenses should not exceed 26% to 28% of your gross monthly income.


Annual Income

Months in a Year 

Gross Monthly Income

Maximum Conventional Loan Housing Expense

Monthly Payments


÷ 12


X 28%



 Long-Term Debt

Any expenses that extend 11 months or more into the future, such as car loans, are termed long-term debt.

  • For conventional loans, total monthly costs, including PITI and all other long-term debt, should equal no greater than 33% to 36% of your gross monthly income.

Budgeting for Your Home

When budgeting to buy a home, it is important to allow enough money for additional expenses such as:

  • maintenance

  • utilities

  • homeowner’s insurance

  • property insurance

Want to find out how much you can borrow? Contact me and I will put you in contact with a loan professional.

I serve the entire San Gabriel Valley: Alhambra, Monterey Park, San Gabriel, Rosemead, Temple City, Arcadia, Pasadena, South Pasadena, San Marino, El Monte, Irwindale, Monrovia, Bradbury, Sierra Madre, Duarte, Altadena, La Puente, Covina, Azusa, La Verne, San Dimas, Montclair, Claremont, Upland, Rancho Cucamonga, Hacienda Heights, Rowland Heights, West Covina, Diamond Bar, Walnut, Chino Hills, and surrounding areas.

Home | About | Site Map | Terms of Use | Privacy Policy | Disclaimer

Copyright © JTN Real Estate. All rights reserved.