How Much Mortgage Can I Afford?
Published by Cash Flow Deals · Last updated 2026-07-22 · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®), affiliated with Silver Door Realty, LLC (License #CQ1064903)
Most lenders size your mortgage using the 28/36 rule: housing costs stay under 28 percent of gross monthly income, and total debt stays under 36 percent. In practice, a $70,000 salary supports about $1,633 a month in housing, which lands in the $245,000 to $280,000 range at a 6.5 percent rate with 20 percent down. A $100,000 salary stretches that to roughly $350,000 to $400,000. The catch: your interest rate, credit score, and existing debt move those numbers more than most people expect, and the amount a lender approves is almost always higher than what you can comfortably pay. If you're selling into this market, Cash Flow Deals is one option that removes that buyer-financing risk from your sale entirely.
| Cash Flow Deals | Traditional Listing | |
|---|---|---|
| Timeline | Closes in as little as 10 business days | Averages four to six months from offer to keys |
| Buyer financing risk | Buyers pre-vetted (FHA, conventional, VA, DSCR) before contract | Deal can collapse late if the buyer's DTI or rate math falls apart |
| Repairs | Sold as-is; net price locked before repairs are scoped | Inspection and appraisal contingencies can force repairs or a price cut |
| Fees/Costs | No listing commission; net price set upfront | Typical 5-6% agent commission plus 2-5% closing costs |
The 28/36 Rule, Worked Out in Dollars
Take a household earning $6,000 a month in gross income. The 28 percent housing cap puts the maximum monthly payment at $1,680. The 36 percent total-debt cap allows $2,160 across everything: mortgage, car loans, student loans, credit card minimums. If that household already carries $500 a month in other payments, the real mortgage ceiling drops to $1,660. That subtraction step is the one most buyers skip, and it is why two families with identical salaries qualify for very different loans.
Working backward from home price: a $250,000 home takes roughly $55,000 in annual income, a $400,000 home takes about $88,000, and a $600,000 home takes around $132,000. A quick sanity check that holds up across those brackets: a comfortable purchase price sits at roughly 2.5 to 3 times your annual gross income. For context, the National Association of Realtors put the median U.S. home price near $415,000 in early 2025, while the Census Bureau's median household income sits around $77,000. That gap between the median home and the median paycheck is exactly why buyer financing terms decide so many deals.
The Mistake That Makes Buyers House Poor
The most common affordability mistake is treating the lender's approval number as a budget. Approval math runs on gross income, before taxes. Your checking account runs on take-home pay. Conventional lenders cap debt-to-income between 36 and 43 percent, some stretch to 50 percent with strong compensating factors, and FHA loans allow up to 50 percent in certain cases. Borrow at those outer limits and the loan closes fine, but the monthly budget does not.
Interest rates compound the problem. On a $400,000 loan, the payment at 5 percent runs about $2,148 a month. At 7 percent it runs about $2,661. That is a $513 monthly swing, over $6,100 a year, on the exact same house. A two-point rate move quietly deletes an entire price bracket from what a buyer can carry.
A safer target: keep housing at 20 to 25 percent of gross income instead of the full 28, and confirm you can still save 10 to 15 percent of your income after the mortgage payment clears. If the numbers only work with zero savings, the house costs too much, whatever the pre-approval letter says.
Why Buyer Mortgage Math Matters When You Sell in Florida
Flip the table for a moment. If you own a Florida home, every number above describes the person on the other side of your sale. When rates move two points, the pool of buyers who can carry your price shrinks. When a buyer maxes out their debt-to-income ratio to reach your number, the deal is fragile: one appraisal surprise or one new car payment and the financing falls through mid-contract.
That is the problem Cash Flow Deals is built around. Cash Flow Deals is a Florida real estate investor that connects homeowners directly to vetted FHA, conventional, VA, and DSCR buyers through a novation agreement. The buyers in that network have already been screened against the same affordability math this page walks through, so you are not gambling on a stranger's pre-approval letter holding up between contract and closing. Listing-side details run through Silver Door Realty, a licensed Florida brokerage. If you are weighing a sale and want the financing risk handled before it becomes your problem, start at the Florida hub: /florida/sell-my-house-fast.
Cash Flow Deals is a Florida real estate investor that locks in a net price for a seller's house before repairs are scoped, using a novation-based, flat-fee process arranged through its licensed FL brokerage partner, Silver Door Realty — not a traditional listing, and not a brokerage itself.
Here's how Cash Flow Deals turns that math into a closed deal:
1. Cash Flow Deals reviews your property against the same affordability math buyers face, then locks in a net price before any repairs are scoped.
2. Your file moves through Silver Door Realty's licensed paperwork while a vetted FHA, conventional, VA, or DSCR buyer is confirmed, so there is no shaky pre-approval letter riding on the deal.
3. Closing happens on a fixed date, in as little as 10 business days, without a financing contingency putting the deal at risk.
Common questions
What income do I need to buy a $400,000 home?
Roughly $88,000 a year under the 28/36 rule, assuming a 6.5 percent rate, 20 percent down, and a 30-year loan. Existing debt lowers what you qualify for: every $500 in monthly payments you already carry comes straight out of your mortgage ceiling.
Can I get a mortgage with a debt-to-income ratio above 36 percent?
Often, yes. Conventional lenders typically cap DTI between 36 and 43 percent, some go to 50 percent with strong compensating factors, and FHA loans allow up to 50 percent in certain cases. Qualifying at those limits and comfortably affording the payment are two different things, since approval math uses gross income, not take-home pay.
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What this means for your options
Every path to selling a house has real tradeoffs. Cash Flow Deals is built for the middle: faster than a traditional listing, more money than a cash investor.
Wait and see
Keep the property as-is and hope conditions improve. The mortgage, insurance, and upkeep keep costing money while you wait, with no set date for things to turn around.
List with a traditional agent
Standard MLS listing, typically 5-6% in commission, and a financed buyer whose deal depends on appraisal, inspection, and lender approval — any of which can fall through after weeks on market.
Sell to Cash Flow Deals
No repairs, no showings, no financing contingency on your side — our novation structure connects you with a bank-financed buyer at a price locked at signing. Usually within one business day.
See your selling options before you decide anything.