Today
Current rate, income, debts
Max home price
$456k
Loan ~$410k · PI ~$2,555/mo
Independent calculator. Not a lender, broker, or NMLS-licensed mortgage professional. Disclaimer
Mortgage Pre-Approval Calculator 2026: Federal-Data DTI Math
Enter your income, debts, credit score, and down payment. See your maximum pre-approval amount and your comfortable affordability number side by side. Anchored to live Freddie Mac PMMS rates, FHFA / HUD loan limits, and the CFPB Ability-to-Repay framework. No email required. No lender upsell. Just the math.
Rates last verified 26 June 2026 from Freddie Mac PMMS (30-year fixed 6.49%, 15-year fixed 5.84%, week ending 25 June 2026). 2026 FHFA conforming limit $832,750 (FHFA; 12 U.S.C. § 4542). HUD FHA floor $541,287 (HUD ML 2025-26).
PMMS is a national average survey. Your actual rate depends on credit score, LTV, loan amount, geography, and lender. Confirm with at least three licensed lenders.
Your Financial Details
$30K$7,500/month$500K
Monthly Debt Payments
$
$
$
$
Total: $850/mo
0%$28,846 cash needed30%
Leave blank to auto-fill from credit score. Override to test scenarios.
%
$
Quick Scenarios
Maximum Pre-Approval
$288,455
$259,609 loan + $28,846 down
DTI up to 43% | 6.125% rate
Comfortable Affordability
$180,284
$1,369/mo total payment
25% of $5,475 take-home
The gap: A lender may approve you for $288,455, but your comfortable number is $180,284. That is a $108,171 difference. The maximum stretches your budget to the limit; the comfortable number leaves room for savings, maintenance, and life.
Monthly Payment at Maximum Approval
Principal & Interest$1,577
Property Tax (1.1%)$264
Homeowner Insurance$150
Private Mortgage Insurance (PMI)$108
Total Monthly Payment (PITI)$2,100
Your DTI Ratios
Front-End DTI (housing only)28.0%
Lender limit: 28%
Back-End DTI (all debts)39.3%
Lender limit: 43%
How We Calculate This
Step 1: Your gross monthly income is $90,000 / 12 = $7,500
Step 2: Your existing monthly debts total $850
Step 3: Maximum housing payment = ($7,500 x 43%) - $850 = $2,375
Step 4: After property tax, insurance, and mortgage insurance, maximum P&I = $1,577
Step 5: At 6.125% over 30 years, that supports a $259,609 loan, or a $288,455 home with 10.0% down.
Affordability stress test
Can you still afford it if life happens?
Lenders stress-test their books at +200-300bps. You should too. Enter today's numbers — we'll plot what happens if rates rise, income drops, or debt grows.
Rates +1.5ppManageable
Refinance or ARM reset to 7.86%
Max home price
$392k
↓ $64k (14%) vs today
Loan ~$353k · PI ~$2,555/mo
Income −15%Manageable
Job loss, role change, partner takes career break
Max home price
$358k
↓ $98k (21%) vs today
Loan ~$322k · PI ~$2,007/mo
+$400/mo new debtManageable
Car loan, student loan resumes, credit card balance grows
Max home price
$384k
↓ $71k (16%) vs today
Loan ~$346k · PI ~$2,155/mo
All threeHigh risk
Worst-case compound scenario (rare but possible)
Max home price
$247k
↓ $209k (46%) vs today
Loan ~$222k · PI ~$1,607/mo
Rule of thumb: a mortgage is healthy if you can still cover PITI under the "rates +1.5pp" OR "income −15%" scenario without falling behind. If the compound scenario wipes you out, dial down the target home price by 15-20%.
Authority feed
Every rate, loan limit, DTI ceiling, MIP rate, and underwriting threshold on this page is sourced from a named federal-housing publication. Rate observations come from the Freddie Mac Primary Mortgage Market Survey (PMMS) for the week ending 25 June 2026 (30-year FRM 6.49%, 15-year FRM 5.84%). Loan limits come from the FHFA Conforming Loan Limit announcement (2026 base $832,750; HERA § 1124) and the HUD FHA Single Family Mortgage Limits (2026 floor $541,287; HUD ML 2025-26 (FHA Single Family Loan Limits for Calendar Year 2026)). The Ability-to-Repay and Qualified Mortgage framework derives from 12 CFR § 1026.43 (CFPB General QM Final Rule, effective 2022-10-01).
Primary sources cited on this page: Freddie Mac PMMS (30-year and 15-year national average); FHFA Conforming Loan Limit announcement (12 U.S.C. § 4542); HUD FHA Single Family Mortgage Limits (HUD ML 2025-26); CFPB Ability-to-Repay and Qualified Mortgage Rule (12 CFR § 1026.43); Fannie Mae Selling Guide B3-6 (DTI) and B5-6 (HomeReady); FHA Single Family Housing Policy Handbook 4000.1; VA Pamphlet 26-7 Chapter 4 (residual income) and Chapter 8 (funding fee).
Refresh cadence: PMMS weekly, FHFA / HUD limits annual, CFPB rule quarterly review. Last verified 26 June 2026. Methodology and source ledger - Disclaimer (not mortgage advice).
How Lenders Calculate Your Pre-Approval Amount
The single most important number in mortgage pre-approval is the debt-to-income ratio (DTI). Lenders calculate two versions: front-end DTI (housing costs only divided by gross monthly income, capped at 28% conventional / 31% FHA per FHA Handbook 4000.1) and back-end DTI (all monthly debts including housing, divided by gross monthly income).
Back-end DTI ceilings by program (named source for each):
- Conventional: 43% standard; up to 50% via Fannie Mae Desktop Underwriter with compensating factors (Fannie Mae Selling Guide B3-6-02) or Freddie Mac Loan Product Advisor (Freddie Mac Single-Family Seller / Servicer Guide § 5401.2).
- FHA: 43% under the TOTAL Mortgage Scorecard; up to 50%+ via manual underwriting with documented compensating factors (FHA Handbook 4000.1 Section II.A.5.a.iii, HUD).
- VA: 41% is a guideline indicator, not a hard cap. The controlling test is the residual income table by region and family size in VA Pamphlet 26-7 Chapter 4 (38 C.F.R. § 36.4340).
- USDA: 29 / 41 (front / back) per USDA Single Family Housing Guaranteed Loan Program Handbook HB-1-3555 § 11.2; up to 44% with GUS automated approval.
Important correction: The CFPB General QM Final Rule (12 CFR § 1026.43(e)(2)), effective 1 October 2022, replaced the 43% back-end DTI bright-line with an APR-based price threshold (loan APR relative to the Average Prime Offer Rate, APOR). The 43% figure is no longer the legal QM safe-harbour test. It persists as an industry-standard operational ceiling because of Fannie Mae and Freddie Mac selling-guide habits, not because of the CFPB rule. See the full DTI explainer and the CFPB rule text for the APR / APOR thresholds.
The Ability-to-Repay framework (CFPB 12 CFR § 1026.43(c)(2)) requires lenders to consider and verify eight underwriting factors before originating a covered transaction: income / assets, employment status, monthly payment on the covered transaction, monthly payment on any simultaneous loan, monthly mortgage-related obligations (taxes, insurance, HOA, MIP), current debt obligations including alimony and child support, monthly DTI or residual income, and credit history. The CFPB ATR rule derives from the Truth in Lending Act (15 U.S.C. § 1639c) and the Dodd-Frank Wall Street Reform and Consumer Protection Act § 1411.
The formula: (monthly debts + proposed housing payment) / gross monthly income = back-end DTI
Worked example at $90,000/year income with $850/month in existing debts. Gross monthly income = $7,500. At the 43% operational back-end ceiling: $3,225 total debt capacity. Subtract existing debts: $3,225 - $850 = $2,375 available for housing. Housing costs include principal and interest, property tax (~1.1% of home value annually), homeowner insurance (~$1,800/year), and PMI / MIP if under 20% down. After taxes, insurance, and PMI, roughly $1,800 to $1,950 remains for P&I. At Freddie Mac PMMS 6.49% (week ending 25 June 2026) on a 30-year term, that supports a loan of approximately $290,000 to $310,000.
Compensating factors can push approval above standard DTI limits. With a credit score above 720, cash reserves of 6+ months of mortgage payments, or minimal payment increase from current rent, lenders using Fannie Mae Desktop Underwriter (Selling Guide B3-6-02) or Freddie Mac Loan Product Advisor (Single-Family Guide § 5401.2) may approve back-end DTIs up to 50% on conventional loans. FHA manual underwriting per HUD Handbook 4000.1 allows similar flexibility with documented compensating factors. VA does not use DTI as the controlling test; the residual income table per Pamphlet 26-7 Chapter 4 governs.
Where This Calculator's Numbers Come From
Every rate, DTI ceiling, loan limit, and program rule on this site traces to a named federal-housing publication. Refresh cadence below; full ledger at /methodology.
Freddie Mac PMMS
Weekly (Thursday)
Current 30-year and 15-year national average. Latest print 6.49% / 5.84%, week ending 25 June 2026.
Fannie Mae Selling Guide B3-6
Quarterly bulletin
Conventional back-end DTI policy (50% max via Desktop Underwriter), gift / asset / reserve rules, LLPA matrix.
Freddie Mac Single-Family Seller / Servicer Guide § 5401.2
Quarterly bulletin
Loan Product Advisor DTI policy, Home Possible 3% down income limits, manual underwriting framework.
FHA Single Family Housing Policy Handbook 4000.1
On HUD Mortgagee Letter
FHA DTI ceilings (43% Scorecard / 50%+ manual), MIP 0.55% annual + 1.75% upfront, 580 minimum FICO for 3.5% down.
VA Pamphlet 26-7
On VA Circular
Residual income tables (Chapter 4), funding fee schedule (Chapter 8), no-PMI / no-down-payment policy.
USDA HB-1-3555
On USDA Administrative Notice
USDA Rural Development eligible-area rules, 29 / 41 ratios, GUS automated underwriting.
FHFA Conforming Loan Limit announcement
Annual (November)
2026 base $832,750, high-cost ceiling $1,249,125; HERA § 1124, 12 U.S.C. § 4542.
CFPB ATR / QM Rule (12 CFR § 1026.43)
Quarterly review
Ability-to-Repay 8-factor framework; General QM APR / APOR threshold replacing the pre-2022 43% DTI bright-line.
HUD FHA county loan limit lookup
Annual + on HUD update
2026 floor $541,287 and ceiling $1,249,125, county lookups.
Credit Score Impact on Mortgage Rates
30-year fixed bands derived from the Freddie Mac PMMS 6.49% national average (week ending 25 June 2026) plus the GSE Loan-Level Price Adjustment (LLPA) matrix pattern (Fannie Mae Selling Guide Announcement SEL-2023-04). Monthly payments calculated on a $400,000 loan.
| Score Range | Est. Rate | Monthly P&I | 30-Year Interest |
|---|---|---|---|
| 760+ | 6.00% | $2,398 | $463,353 |
| 740-759 | 6.125% | $2,430 | $474,870 |
| 720-739 | 6.25% | $2,463 | $486,459 |
| 700-719 | 6.50% | $2,528 | $509,828 |
| 680-699 | 6.75% | $2,594 | $533,454 |
| 660-679 | 7.00% | $2,661 | $557,327 |
| 640-659 | 7.25% | $2,729 | $581,434 |
| 620-639 | 7.50% | $2,797 | $605,769 |
Source: Credit-score bands derived from Freddie Mac PMMS national average (6.49% week ending 25 June 2026) plus the GSE / FHA Loan-Level Price Adjustment matrix pattern. Adjustments are illustrative; your actual lender's pricing will differ based on LTV, occupancy, loan amount, and proprietary overlays. FHA Handbook 4000.1 Section II.A.1.b.ii sets the 580 minimum FICO at 3.5% down.
The difference between 760+ (6.00%) and 620-639 (7.50%) on $400,000 is $399/month or $142,416 over 30 years.
Down Payment Scenarios on a $400,000 Home
At Freddie Mac PMMS 6.49% (30-year fixed, week ending 25 June 2026). PMI estimates based on good credit (700+) from MGIC / Radian / Essent published rate cards. FHA MIP per HUD Mortgagee Letter 2023-05 (0.55% annual + 1.75% upfront). Property tax 1.1%, insurance $1,800/year.
| Down Payment | Cash Needed | Loan Amount | Est. PMI / MIP | Total Monthly |
|---|---|---|---|---|
| 3% (HomeReady) Fannie Mae B5-6 | $12,000 | $388,000 | $162/mo | $2,736 |
| 3.5% (FHA) FHA Handbook 4000.1; HUD ML 2023-05 | $14,000 | $386,000 | $177/mo* | $2,747 |
| 5% Conventional | $20,000 | $380,000 | $158/mo | $2,669 |
| 10% Conventional | $40,000 | $360,000 | $150/mo | $2,508 |
| 20% PMI not required | $80,000 | $320,000 | None | $2,167 |
| 0% (VA) VA Pamphlet 26-7 Chapter 8 | $0 | $400,000 | Funding fee 2.15% | $2,494 |
Source: PMI estimates from MGIC / Radian / Essent rate cards; FHA MIP 0.55% annual + 1.75% upfront per FHA Handbook 4000.1 Section II.A.5 (HUD Mortgagee Letter 2023-05); VA funding fee per VA Pamphlet 26-7 Chapter 8 (38 U.S.C. § 3729). *FHA MIP is 0.55% annually and does not drop off if you put less than 10% down, under the life-of-loan rule (HUD Mortgagee Letter 2013-04). Conventional PMI auto-terminates at 78% LTV under the Homeowners Protection Act (12 U.S.C. §§ 4901-4910). VA funding fee replaces PMI; veterans with service-connected disability are exempt (38 U.S.C. § 3729).
2026 Loan Limits at a Glance
Per the FHFA Conforming Loan Limit announcement of 2025-11-25 (HERA § 1124, 12 U.S.C. § 4542) and HUD Mortgagee Letter 2025-26 (FHA Handbook 4000.1 Section II.A.2.a.ii). VA loans have no national maximum loan amount for veterans with full entitlement since 1 January 2020 (Public Law 116-23, Blue Water Navy Vietnam Veterans Act; 38 U.S.C. § 3703(a)(1)).
| Program | 2026 One-Unit Base | High-Cost Ceiling | Source |
|---|---|---|---|
| Conventional conforming (FHFA) | $832,750 | $1,249,125 | FHFA; 12 U.S.C. § 4542 |
| FHA single-family | $541,287 | $1,249,125 | HUD ML 2025-26; 12 U.S.C. § 1709(b)(2) |
| VA loan | No national cap | No national cap | Pub. L. 116-23 § 6; 38 U.S.C. § 3703(a)(1) |
| USDA Rural Development | Property-eligibility based | Property-eligibility based | USDA HB-1-3555 § 5.3 |
Year-over-year: FHFA base rose from $806,500 (2025) to $832,750 (2026), +3.26%. The FHA floor is statutorily set at 65% of the FHFA baseline per 12 U.S.C. § 1709(b)(2)(A)(ii); the ceiling is 150% of the FHFA baseline. Alaska, Hawaii, Guam, and the US Virgin Islands carry elevated FHA limits (1.5x the high-cost ceiling) per 12 U.S.C. § 1709(b)(2)(B).
What to Do Before Applying for Pre-Approval
Pay down revolving balances
Paying off a $5,000 credit card with a $150/month minimum frees up $150/month in DTI capacity. Under Fannie Mae Selling Guide B3-6-05 monthly debt obligation rules, that translates to roughly $24,000 more in mortgage approval. Target cards below 30% utilization, ideally below 10%.
Avoid new credit applications
New hard inquiries drop your score 5-10 points temporarily per FICO scoring methodology. New accounts reduce average account age. Do not open credit cards, finance furniture, or co-sign for anyone in the 3-6 months before your mortgage application.
Gather documents early
Per FHA Handbook 4000.1 Section II.A.4 and Fannie Mae Selling Guide B3-3, lenders need 2 years of W-2s or tax returns, 30 days of recent pay stubs, 2-3 months of bank statements, and government ID. Self-employed borrowers also need 2 years of business tax returns and a year-to-date P&L per Fannie Mae B3-3.2.
Save beyond the down payment
Closing costs run 2-5% of the loan amount and are disclosed on the CFPB Loan Estimate (12 CFR § 1026.37). Lenders want to see 2-3 months of mortgage payments in reserves after closing per Fannie Mae Selling Guide B3-4 reserve requirements. On a $2,400/month payment, that means $4,800-$7,200 in reserves beyond your down payment and closing costs.
Explore More Guides
How Much House Can I Afford?
28/36 rule, take-home pay approach, affordability tables by income (Fannie Mae B3-6 framework).
DTI Ratio Explained
What counts as debt, DTI limits by loan type, the CFPB QM rule's APR / APOR test that replaced the 43% bright-line in 2022.
FHA vs Conventional
Side-by-side cost comparison with dollar amounts at 5, 10, 30 years; HUD ML 2023-05 MIP detail.
VA Loan Pre-Approval
No down payment, no PMI, residual income test per VA Pamphlet 26-7 Chapter 4.
Jumbo Pre-Approval
Above the FHFA $832,750 conforming limit. Non-QM underwriting per 12 CFR § 1026.35.
2026 Mortgage Rates
Freddie Mac PMMS history, 12-week trend, rate-lock timing under CFPB TRID (12 CFR § 1026.19).
$100K Salary Scenarios
Six debt scenarios with exact pre-approval amounts at PMMS-anchored rates.
Self-Employed Mortgage
Schedule C, K-1, bank-statement underwriting per Fannie Mae B3-3.2.
Down Payment From 401(k) / IRA
IRC § 72(t)(2)(F) first-time homebuyer exception, 401(k) loans, tax cost of each source.
Frequently Asked Questions
How much mortgage can I get pre-approved for?+
Your pre-approval amount depends on your debt-to-income (DTI) ratio. Fannie Mae Selling Guide B3-6-02 and the Freddie Mac Single-Family Seller / Servicer Guide allow conventional back-end DTI up to 50% via Desktop Underwriter (Fannie) or Loan Product Advisor (Freddie) with compensating factors; the standard ceiling is 43%. FHA Handbook 4000.1 Section II.A.5.a.iii permits 43% under the TOTAL Mortgage Scorecard and up to 50%+ via manual underwriting with documented compensating factors. On $90,000/year gross income ($7,500/month) with $850/month in existing debts, maximum total debt at 43% DTI is $3,225. Subtract debts and roughly $2,375 remains for housing. At Freddie Mac PMMS 6.49% (30-year fixed, week ending 25 June 2026), that supports approximately $380,000 in total home price with 10% down.
What is the difference between pre-approval and pre-qualification?+
Pre-qualification is an informal estimate based on self-reported financials, usually done online in 15 minutes without verifying anything. Pre-approval is a formal process where a CFPB-defined 'application' (12 CFR § 1026.2(a)(3)) is taken: the lender pulls your credit, verifies income with W-2s and pay stubs per FHA Handbook 4000.1 Section II.A.4 documentation standards, reviews bank statements, and issues a conditional commitment letter. Under the CFPB Equal Credit Opportunity Act regulation (12 CFR § 1002.9) the lender must issue a notice of action within 30 days. In competitive housing markets, sellers and their agents strongly prefer pre-approval letters with offers.
How does my credit score affect my pre-approval amount?+
Credit score determines your interest rate through the Fannie Mae and Freddie Mac Loan-Level Price Adjustment (LLPA) matrix (Fannie Selling Guide Announcement SEL-2023-04). FHA Handbook 4000.1 Section II.A.1.b.ii requires a minimum 580 FICO for 3.5% down (or 500-579 for 10% down). A 760+ score on conventional currently prices roughly at the Freddie Mac PMMS 6.49% baseline; a 620-639 score typically pays 100-150 basis points over PMMS due to the LLPA matrix. On a $350,000 loan, a 1.5% rate difference is approximately $370 more per month and over $133,000 more in total interest over 30 years.
How long does a mortgage pre-approval last?+
Most pre-approval letters are valid for 60 to 90 days. After expiration, the lender re-verifies income (Fannie Mae Selling Guide B3-3.1 employment requirements) and pulls credit again. Shopping multiple lenders within a 45-day window counts as a single hard inquiry for FICO scoring purposes (Fair Isaac Corporation rate-shopping rule), so compare at least 3 lenders during this window without worrying about credit damage.
Does pre-approval guarantee I will get the mortgage?+
No. Pre-approval is conditional. Final approval requires the property to appraise at or above purchase price per the Uniform Standards of Professional Appraisal Practice (USPAP), your finances to remain stable through closing, and clean title search. Per industry data, roughly 8-10% of pre-approved applications are denied at final underwriting, most commonly due to appraisal shortfalls, undisclosed debts found in the final credit re-pull, employment changes, or large deposits without a paper trail (Fannie Mae B3-4.2.2 source-and-seasoning rule).
What debts count in the DTI calculation?+
Per Fannie Mae Selling Guide B3-6-05 (monthly debt obligations): car loans / leases, student loans (0.5% of balance per Fannie or 1% per Freddie if no documented payment), credit card minimums, personal loans, child support, and alimony all count. Excluded: utilities, cell phone, car insurance, health insurance, groceries, subscriptions. The FHA equivalent is FHA Handbook 4000.1 Section II.A.5.a.iv. Your proposed mortgage payment (PITI plus PMI / MIP) is also added to the DTI calculation.
Should I get an FHA or conventional loan?+
FHA loans work when your credit is below 680, your DTI exceeds 43%, or you have limited down-payment savings (3.5% minimum per FHA Handbook 4000.1 Section II.A.2). Conventional wins when your credit is 680+, you can put 10-20% down, and you plan to keep the home long-term. The critical difference is mortgage insurance: FHA MIP at 0.55% annually (HUD Mortgagee Letter 2023-05, reduced from 0.85%) stays for the life of the loan if you put less than 10% down (HUD ML 2013-04), while conventional PMI cancels automatically at 78% LTV under the Homeowners Protection Act (12 U.S.C. §§ 4901-4910).
What are the 2026 conforming loan limits?+
Per the FHFA Conforming Loan Limit announcement of 2025-11-25 (12 U.S.C. § 4542; HERA § 1124), the 2026 conforming limit is $832,750 for one-unit properties in most areas, up from $806,500 in 2025. In high-cost areas (designated counties in CA, NY, MD, DC, NJ, and others), the limit reaches $1,249,125. FHA loan limits per HUD ML 2025-26: floor $541,287 (65% of FHFA baseline per 12 U.S.C. § 1709(b)(2)(A)(ii)), ceiling $1,249,125 (150% of FHFA baseline). Loans above these limits are jumbo and typically require larger down payments and higher credit scores.