How to run a price check
Put in the price first. Then add what you know about the buyer: gross monthly income, monthly debt payments, credit score range and cash on hand. If you're standing in a kitchen at a showing and only know the income, run it with that and leave debts at zero. The result tells you how much room is left for debts, which is the next question to ask.
Pick the county so taxes and loan limits are right. The opening rate is 5.75% on a 30-year fixed. If the buyer already ran the main affordability calculator, their numbers carry over and the check runs on its own.
How the income and cash figures are calculated
Income needed
The tool builds the full payment for each program at the price you entered: principal and interest, property taxes, homeowners insurance, HOA dues and mortgage insurance. FHA adds the 1.75% upfront mortgage insurance premium (UFMIP) to the loan and charges 0.55% a year when the buyer puts down less than 5%. VA adds its funding fee to the loan. USDA adds its 1% guarantee fee and a 0.35% annual fee.
Then it divides. On FHA, income needed is the larger of the payment divided by 46.9% or the payment plus debts divided by 56.9%. On Conventional it's payment plus debts divided by 50%. USDA uses 29% and 41%. VA uses 41% as a guideline and lets residual income (the money left each month after the house, debts, taxes and family living costs) decide.
Cash needed
Cash is the down payment plus estimated closing costs and prepaids, minus any seller credit up to the program's cap. FHA caps seller help at 6% of the price, VA at 4% in concessions, and Conventional at 3% when the buyer puts down less than 10%. If the down payment is the gap, FHA 100% financing closes it.
Checking a $350,000 house in Broward
A buyer earns $6,200 a month, pays $400 a month in debts, has a 660 score and $5,000 saved.
| FHA at $350,000 | Amount |
|---|---|
| Base loan (96.5%) | $337,750 |
| Loan with UFMIP financed | $343,660.63 |
| Principal and interest | $2,005.51 |
| Monthly mortgage insurance | $154.80 |
| Property taxes | $277.08 |
| Homeowners insurance | $283.00 |
| Full payment | $2,720.39 |
Income needed is $2,720.39 divided by 46.9%, which is $5,800.40 a month. With $400 in debts, the total ratio needs only $5,484, so housing is the limit. At $6,200 the buyer sits at 43.9% housing and 50.3% total. FHA works.
Cash is the open question. The 3.5% down payment is $12,250 and the buyer has $5,000. FHA 100% financing removes the $12,250, and a seller credit can cover closing costs up to $21,000 (6%).
Copy the one-line summary
The summary button writes a single line you can paste into a text, like this:
"$350,000 in Broward: FHA works. About $2,720/mo at 5.75%, buyer at 43.9% housing / 50.3% total. $0 down with FHA 100% financing."
It's short enough to read on a lock screen and gives the buyer one clear next step.
When a program comes back short
Look at the line that failed. Short on income means adding a co-signer, so open the co-signer calculator. A parent or grandparent on Social Security or SSI can co-sign, and it's how most AAA approvals get done. When debts are the problem, the DTI calculator shows the payoff that clears it. And if the payment itself feels high, compare programs in the mortgage payment calculator.
For a buyer who's ready to write an offer, AAA Capital Funding at 888-601-8344 can turn this check into a full pre-approval with verified numbers. Give us a call and we'll work through it together.