How the "How Much Home Can I Afford" Calculator Works

This calculator works backward from your income. Lenders qualify you using two debt-to-income (DTI) ratios: your front-end ratio (proposed housing payment ÷ gross monthly income) and your back-end ratio (housing payment + all other monthly debts ÷ gross monthly income). The calculator applies the DTI guideline for your loan type to your income and existing debts to find the maximum monthly housing payment you'd likely qualify for, then solves the amortization formula in reverse for the loan amount that produces that payment at your rate and term.

Add your planned down payment to that loan amount to get your estimated maximum home price.

California rules & 2026 figures that apply

• Typical debt-to-income (DTI) guidelines by loan type: conventional loans generally allow up to 36% DTI on manual underwriting, up to 45% with strong compensating factors, and up to 50% through Fannie Mae's Desktop Underwriter (Fannie Mae Selling Guide, B3-6-02). FHA commonly benchmarks 31% housing / 43% total DTI, and USDA benchmarks 29% housing / 41% total DTI, both allowing higher ratios with automated underwriting or documented compensating factors (Lower, DTI Limits By Loan Type). VA loans weigh residual income more heavily than a strict DTI ceiling.
• The 2026 FHFA baseline conforming loan limit for Sacramento County (1-unit) is $832,750, up 3.3% from $806,500 in 2025; CA high-cost counties top out at $1,249,125 (150% of the baseline) for 2026 (FHFA, 2026 Conforming Loan Limit Values).
• Sacramento County's 2026 FHA loan limit is estimated at roughly $764,750 for a single-family home (Community First Mortgage, Sacramento County FHA Loan Limits 2026) - confirm the exact current figure with your loan officer or HUD's official lookup tool.
• Veterans and service members with full VA entitlement have no maximum VA loan amount cap under the Blue Water Navy Vietnam Veterans Act of 2019 - approval is still based on income, credit and the appraisal (Military.com, 2026 VA Loan Limits).
• First-time buyers in California may qualify for CalHFA down-payment/closing-cost assistance - e.g., the MyHome Assistance Program (a deferred junior loan up to 3% of the purchase price) - subject to income limits and a homebuyer-education requirement (CalHFA, MyHome Assistance Program).
• Under California's Proposition 13, the base property tax rate is 1% of assessed value; with voter-approved local bonds and assessments layered on top, most Sacramento County parcels land at an effective rate of roughly 1.05%-1.3% (about 1.10% within Sacramento city limits) (JVM Lending, Sacramento Property Taxes 2026). Buying a home also triggers a one-time supplemental property tax bill once the county reassesses to the new purchase price.

Estimates only, not a commitment to lend. Figures above reflect publicly reported 2026 program limits and CA tax rules as of this writing and can change - confirm current numbers and your specific eligibility with one of our loan officers before making a decision. The Home and Commercial Loan Company, Inc. is an Equal Housing Opportunity lender, NMLS #1665729.