How much house can I afford on my income?

By Darryn Stephen, Mortgage Advisor, Smart Home Loans · Jupiter, FL · Updated November 2, 2026

What do lenders look at to decide how much I can borrow?

Lenders look at four main things. First, your income and how steady it is. Second, your monthly debts, such as car payments, student loans and credit card minimums. Third, your credit history. Fourth, the money you have for the down payment, closing costs and a cushion afterwards.

The key comparison is called debt-to-income. The lender adds up your monthly debts plus the new house payment and compares that to your gross monthly income. Each loan program and lender has its own limits, so the same buyer may qualify for different amounts with different programs.

Why does the Florida payment matter more than the price?

In Florida, the price tag is only part of the story. Your monthly payment usually includes principal and interest, property taxes, homeowners insurance, and often flood insurance and HOA or condo fees. In Jupiter, Tequesta and Palm Beach Gardens, insurance and HOA dues can change the budget a lot from one street to the next.

Two homes at the same price may have very different payments. A home in a newer community with a lower insurance quote may fit when an older waterfront home at the same price does not. That is why I build the full monthly payment for the actual neighborhoods you like, not a national average.

What counts as income?

Most steady, documented income may count. That includes W-2 wages and salary, overtime and bonus with enough history, self-employment and 1099 income, Social Security, pensions and retirement draws, and in some cases rental income or investment income.

• Salaried and hourly workers: usually pay stubs and W-2s.
• Self-employed buyers: often tax returns, or with some programs bank statements instead. See Can I get a mortgage if I’m self-employed?
• Retirees and investors: some lenders may count income from retirement and investment accounts. See 55+ communities and asset depletion.

How do my debts change what I can afford?

Every monthly payment on your credit report reduces what is left for a house payment. Paying off a small car loan or a credit card before you apply may raise your buying power more than you expect. On the other hand, opening a new card or financing furniture right before closing can hurt. If you are not sure which debts to tackle first, ask me before you move any money.

Is what I qualify for the same as what I should spend?

Not always. A lender approval tells you the most a lender may lend. A comfortable budget also leaves room for savings, repairs, hurricane season costs and the life you want. I always show buyers more than one price point so you can pick the payment you are comfortable with, not just the largest number.

How can I find my real number before I shop?

The quickest way is a short income review. You tell me how you earn your income, roughly what you make and what you want to do. I look at which programs may fit and how much buying power you may have, then I call you to walk through it. From there, a full pre-approval with documents gives you a number sellers and agents in Palm Beach County take seriously.

Want to know your real price range?

Answer a few quick questions in my Instant Income Review and see which loan programs may fit you, right now. No call unless you want one, and no credit pull.

Smart Home Loans NMLS #1734077 · Darryn Stephen NMLS #2664300 · Equal Housing Opportunity. Not a commitment to lend. Programs, terms and eligibility depend on the lender and the borrower’s profile. This is general information, not legal, tax or financial advice.