Original article updated 2026-07-30. Retained for reference. Confirm current requirements with an appropriate provider or administering agency.
Direct answer
There is no single income percentage that makes a mortgage affordable for every household. Start with take-home cash flow, other obligations, savings and a buffer for changes. Include the full costs of ownership when deciding on a monthly payment, even if a lender would approve a larger loan.
Use the full housing payment, not principal and interest alone
Budget for principal, interest, property taxes, homeowners insurance, mortgage insurance, and homeowners association dues when applicable. Lenders often review housing and total debt ratios using gross income, while your personal budget must work with the cash that actually reaches your account. A loan may be approvable without being comfortable, so leave room for repairs, utilities, emergencies, and changes in income.
Turn the percentage into a workable budget
Use the affordability planning guide to estimate a price range, then check the full payment with the mortgage payment calculator. Adjust the down payment, rate, taxes, and insurance rather than relying on a rule of thumb. Compare the result with your current monthly spending and savings plan before choosing a target payment.
Frequently asked questions
Should I use gross income or take-home pay?
Lenders usually calculate ratios with gross income. For your own budget, take-home pay is often more useful because it reflects taxes and payroll deductions.
Is 28% of income always safe for a mortgage?
No. It is a common benchmark, not a guarantee. High debts, variable income, major expenses, or limited savings may call for a lower housing percentage.
Primary sources for this update
These specific statements were checked on November 11, 2026. Requirements can change; verify the rules for your own loan.