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Home Buying

How Much House Can I Afford?

Debt-to-income, front-end and back-end ratios, and Florida-specific costs that shape your budget.

7 min readBy NexGen Capital Corp · NMLS 1766649Updated 2026Home Buying

Short answer

Debt-to-income, front-end and back-end ratios, and Florida-specific costs that shape your budget.

Most lenders target a front-end ratio (housing payment ÷ gross income) at or below 28%, and a back-end ratio (all debts ÷ gross income) at or below 43%. Some programs allow higher.

The 28/43 guideline

Most lenders target a front-end ratio (housing payment ÷ gross income) at or below 28%, and a back-end ratio (all debts ÷ gross income) at or below 43%. Some programs allow higher.

Florida-specific costs matter

Homeowner's insurance and windstorm coverage in coastal Florida can add hundreds per month. Flood insurance may be required in specific FEMA zones. Get real quotes before finalizing your budget.

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Reserves and lifestyle buffer

Aim to keep 2–6 months of housing payments in reserve after closing, and leave room in your monthly budget for maintenance, utilities, and life goals.

Key takeaways

  • Housing under ~28% of gross income is a healthy target.
  • Insurance can significantly change your Florida payment.
  • Keep reserves after closing.

Frequently asked questions

Related mortgage option

Ready to apply this to a real loan? Review how Conventional Loans work in Florida, or estimate your monthly payment before you talk to an advisor.

Sources

Program rules change and individual lender overlays apply. Verify specifics with the agency or with a licensed NexGen Capital advisor before relying on them.

Reviewed by NexGen Capital Corp

Written and reviewed by the licensed mortgage team at NexGen Capital Corp, a Florida mortgage brokerage (NMLS #1766649). Verify our license on NMLS Consumer Access.

Last reviewed: 2026

This article is educational and is not a commitment to lend or an offer of credit. Speak with a licensed NexGen advisor about your own situation.

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