Can You Afford a Home
Use our calculator to see what you can afford based on your income, debts, and current interest rates. Get real numbers for the South Florida market — no guesswork, no obligation.
Affordability Tool
How Much Home Can You Afford?
Adjust the sliders below to estimate your maximum home price and monthly payment breakdown.
Your Financial Profile
Maximum Home Price
$267,461
Based on 43% debt-to-income ratio
Monthly Breakdown
$2,187FHA Loan
With less than 20% down, an FHA loan offers flexible credit requirements and competitive rates. Great for first-time buyers.
Loan Options
Find Your Loan Program
Every buyer is different. Compare the most popular mortgage programs side by side to find the right fit for your situation.
FHA
3.5%
Minimum Down Payment
Government-backed loan ideal for first-time buyers. Accepts lower credit scores and down payments as low as 3.5%. Requires mortgage insurance for the life of the loan, but overall monthly costs are often competitive with conventional options for buyers with scores under 700.
Conventional
3%
Minimum Down Payment
Standard loan with competitive rates for borrowers with good credit. PMI is required below 20% down but cancels automatically once you reach 20% equity. Best for buyers with credit scores of 680 or higher who want the lowest long-term cost.
VA
0%
Minimum Down Payment
Exclusive to veterans, active-duty military, and eligible surviving spouses. Offers zero down payment and no monthly mortgage insurance. The VA funding fee can be financed into the loan. Best overall terms available for those who qualify.
USDA
0%
Minimum Down Payment
Zero-down-payment option for eligible rural and suburban areas. Parts of western Miami-Dade near Homestead and certain Broward communities qualify. Income limits apply based on household size and county. Mortgage insurance rates are lower than FHA.
Rent vs. Own
5-Year Savings Snapshot
See how renting compares to owning over 5 years in the Miami market. The numbers speak for themselves.
Renting for 5 Years
Total Rent Paid
$144,000
100% of payments go to your landlord
Owning for 5 Years
Total Housing Cost
$191,830
Your payments build wealth you keep
* Estimates based on a $400,000 home with 3.5% down, 6.75% interest rate, 4% annual appreciation, and typical Miami-Dade tax and insurance costs. Actual results will vary. This is not a commitment to lend.
Common Questions
Homebuyer FAQ
A common guideline is that your total monthly housing cost — including mortgage, taxes, insurance, and HOA — should not exceed 28% to 33% of your gross monthly income. For someone earning $75,000 per year in Miami, that translates to roughly $1,750 to $2,062 per month in total housing costs, which could support a home price of approximately $300,000 to $370,000 depending on your down payment and current rates. Our calculator above gives you a precise estimate based on your specific numbers.
Your total monthly housing payment includes several components: principal and interest on the loan, property taxes (approximately 1.1% of the home value annually in Miami-Dade), homeowner's insurance (roughly $150 to $250 per month depending on the property), flood insurance if required by FEMA maps, mortgage insurance if your down payment is below 20%, and HOA fees if applicable. Our affordability calculator factors in all of these so you see the complete picture, not just the loan payment.
Market timing is less important than personal readiness. Miami home values have appreciated roughly 42% over the past five years and inventory remains tight, which supports continued price growth. Waiting for a market dip means continuing to pay rising rent while home prices may keep climbing. Interest rates fluctuate, but you can always refinance later if rates drop. The best time to buy is when you are financially prepared — pre-approved, debts under control, and emergency savings in place.
Lenders use your debt-to-income (DTI) ratio to determine how much you can safely borrow. DTI is calculated by dividing your total monthly debt payments — including your future mortgage, car loans, student loans, credit card minimums, and other obligations — by your gross monthly income. Most loan programs allow a maximum DTI of 43% to 50%. For example, if you earn $6,250 per month gross and have $500 in existing debts, a lender would allow up to $2,187 to $2,625 for your total housing payment at a 43% to 50% DTI limit.