Enter your income and debts to get a realistic price range based on the DTI guidelines Austin lenders actually use. Defaults are set to Travis County 2026.
I can pull current rates, walk you through loan options, and show you what homes in your range look like right now in Austin.
For a $550,000 home — close to Austin's 2026 median — with 20% down at 7%, total PITI runs about $4,023/month. At the 28% front-end guideline you need roughly $14,368/month gross income, or $172,400/year. With a co-borrower, combined income is what lenders count.
At $100,000/year ($8,333/mo gross) with no other debts, 20% down, and a 7% rate, the 28% front-end guideline allows $2,333/mo for housing — PITI on roughly $340,000-$360,000. A car payment or student loan brings that number down. Many Austin buyers at this income level look at Round Rock, Cedar Park, and Pflugerville.
Yes, but options narrow. At $80,000/year with no existing debts and 20% down, the 28% guideline allows about $1,867/mo for PITI — enough for roughly $270,000-$290,000. In Austin proper that is limited, but Round Rock, Manor, Pflugerville, and Leander have homes in this range.
Conventional lenders allow up to 43-45% total DTI in most cases, higher with strong compensating factors. FHA allows up to 57%. The 28% front-end (housing only) is an older rule of thumb; today most lenders focus on total back-end DTI. Aim for under 40% if you want the broadest approval options.
Conventional loans start at 3% (first-time buyers) or 5% down. Below 20%, PMI applies — typically 0.5-1.5%/year of the loan. FHA requires 3.5%. VA loans are 0% down for qualifying veterans. In Austin's market, a larger down payment sometimes strengthens your offer depending on the situation.
Travis County averages about 1.95%/year. On a $500,000 home that is $813/month in taxes, counted by lenders toward your DTI. This is a major reason Austin buyers qualify for less home than buyers in lower-tax states at the same income level. The lack of state income tax partially offsets it, but not dollar for dollar.
Under 36% total DTI is considered strong. 36-43% is acceptable to most conventional lenders. 43-50% requires compensating factors. Above 50%, options narrow to FHA in specific circumstances. I recommend targeting under 40% before applying — it gives you more lender options and often a better rate.
Minimum: down payment + closing costs (2-3% of purchase price in Texas) + 3-6 months PITI in reserves. On a $500,000 home with 20% down: $100,000 down + $10,000-$15,000 closing costs + $12,000-$25,000 reserves — roughly $122,000-$140,000 total. Lenders verify reserves; more than the minimum strengthens your approval.
Yes. Texas funds public services through property taxes instead of income tax. Austin's effective rate of about 1.95% is roughly double the national median. Dallas is similar. Compared to California or Florida metro areas, Texas property taxes are significantly higher, even without state income tax.
At 7% rates and Austin's 1.95% tax rate, monthly ownership costs are typically higher than renting the same home short-term. But buying builds equity, and Austin's long-term appreciation has averaged 4-6%/year. For buyers planning to stay 5+ years, buying generally wins when equity is factored in. Use the Rent vs Buy calculator for a side-by-side comparison.
This calculator uses two standard mortgage underwriting guidelines to find your price range. The front-end ratio (28%) limits your housing payment to 28% of gross monthly income. The back-end ratio (your chosen DTI limit) limits total debt — housing plus all existing obligations — to that percentage of income.
For each price point, monthly housing cost is calculated as: P&I (standard amortization formula) + property taxes (your input rate, default 1.95% for Travis County) + homeowners insurance + PMI if down payment is under 20% + HOA. The calculator binary-searches to find the maximum price satisfying both constraints and returns the more conservative of the two as your recommended budget.
This is an estimate. Your actual qualification depends on credit score, employment history, loan type, asset reserves, and the specific lender. Always get pre-approved before making offers. Last updated July 2026 with Travis County 2026 tax rate data.
