What is a good debt-to-income ratio for a mortgage in the US?
Conventional lenders follow the 28/36 rule: housing costs should not exceed 28% of gross monthly income (front-end DTI), and all monthly debt payments combined should not exceed 36% (back-end DTI). FHA loans allow up to 31% front-end and 43% back-end. VA and USDA loans focus primarily on back-end DTI, often allowing up to 41%.
How much down payment do I need in the US?
Conventional loans: minimum 3–5% for first-time buyers, 20% to avoid private mortgage insurance (PMI). FHA loans: 3.5% with credit score ≥580. VA loans (veterans): 0% down. USDA loans (rural areas): 0% down. Jumbo loans: typically 10–20% minimum. PMI costs 0.5–1.5% of the loan amount annually until you reach 20% equity.
Does my credit score affect how much home I can afford?
Yes significantly. Your credit score affects both your ability to qualify and your interest rate. Conventional loans typically require 620+; FHA allows 580+ (or 500 with 10% down). A higher score means a lower rate — the difference between a 620 and 760 score can be 0.5–1.5% in rate, which translates to tens of thousands in interest over the loan term and changes your maximum qualifying amount.