What is the 28/36 rule for home affordability?

The 28/36 rule is a guideline used by lenders: your monthly housing costs (mortgage, taxes, insurance) should not exceed 28% of gross monthly income (front-end ratio), and your total monthly debt payments should not exceed 36% of gross income (back-end ratio). This ensures you can comfortably afford your home while managing other debts.

Do I need 20% down payment to buy a house?

No, 20% down is not required. Many buyers purchase with 3-5% down through FHA loans (3.5% minimum), Conventional 97 loans (3% down), or first-time buyer programs. VA loans offer 0% down for veterans. While 20% down avoids PMI and lowers monthly payments, it's not necessary to start homeownership.

What credit score do I need to buy a house in Iowa?

Minimum credit scores vary by loan type: FHA loans require 580+ (or 500 with 10% down), Conventional loans need 620+, and VA loans typically require 620+ though there's no official minimum. Higher scores (740+) qualify for better interest rates. A 0.5% rate difference can save tens of thousands over the loan term.

What is the average home price in Des Moines?

The Des Moines metro median home price is approximately $290,000, though this varies significantly by neighborhood. Affordable options like Carlisle and Pleasant Hill average $275-280K, mid-range suburbs like Urbandale and Grimes run $295-300K, and premium areas like West Des Moines and Ankeny reach $375-400K+.

Smart Move Des Moines | Navigation

📞 (563) 513-8771 | ✉️ [email protected] | 📲 Download app

Contact

Home Affordability Calculator Des Moines | How Much House Can I Afford? | Smart Move DSM

💰 Free Calculator

How Much House Can You Afford?

Calculate your home buying budget based on income, debts, and down payment. See which Des Moines neighborhoods fit your budget.

$290K DSM Median

3-5% Min Down

30 sec Calculate

Calculate Your Budget

Annual Household Income

Monthly Debt Payments

Car loans, student loans, credit cards, etc.

Down Payment

Interest Rate (%)

Loan Term

Your Home Budget

Maximum Home Price

Based on 28% debt-to-income ratio

Estimated Monthly Payment

Principal, interest, taxes, insurance

Payment Breakdown

Principal & Interest: $0

Property Taxes (est): $0

Homeowners Insurance: $0

PMI (if applicable): $0

Browse Homes Get Pre-Qualified

Understanding Affordability

📊

28% Rule

Monthly housing payment (PITI) shouldn't exceed 28% of your gross monthly income.

💳

36% Total Debt

Total monthly debts (housing + car + loans) should stay below 36% of gross income.

💰

Down Payment

20% avoids PMI, but many buyers qualify with just 3-5% through FHA or first-time programs.

Factors That Affect Your Budget

Increase Your Budget

Pay down existing debts before applying
Improve credit score for lower rates
Save a larger down payment
Shop for the best mortgage rates
Include co-borrower income

Hidden Costs to Budget

Property taxes (1.5-2% in Iowa)
Homeowners insurance ($1K-$2K/year)
PMI if less than 20% down
Maintenance (1% of value/year)
Closing costs (2-5% of price)

Closing Costs

Expect 2-5% of purchase price
$300K home = $6K-$15K at closing
Appraisal, inspection, title, lender fees
Some costs negotiable with seller
Budget 1-2 months of reserves

Iowa First-Time Buyer Programs

Iowa Finance Authority FirstHome
Down payment assistance available
FHA loans (3.5% down)
Conventional 97 (3% down)
VA loans (0% for veterans)

Des Moines Neighborhoods by Budget

Carlisle

$275K

Small-town, affordable

Pleasant Hill

$280K

Value + good schools

Altoona

$285K

Entertainment hub

Norwalk

$290K

South side growth

Grimes

$295K

NW new construction

Urbandale

$300K

Central, convenient

Johnston

$325K

Family-focused

Waukee

$375K

Fastest growing

View All Neighborhoods →

Affordability FAQs

How much house can I afford on $75,000 salary?

On $75K with minimal debt, you can typically afford $275K-$325K. This uses the 28% rule at current rates (~7%). Your down payment and existing debts significantly impact this range.

What is the 28/36 rule?

The 28/36 rule is a lender guideline: housing costs shouldn't exceed 28% of gross income (front-end), and total debts shouldn't exceed 36% (back-end). This ensures comfortable affordability.

Do I need 20% down payment?

No! Many buyers use 3-5% down through FHA, Conventional 97, or first-time buyer programs. VA loans offer 0% down for veterans. 20% avoids PMI but isn't required.

What credit score do I need?

Minimums vary: FHA needs 580+, Conventional needs 620+, VA typically 620+. Higher scores (740+) get better rates. A 0.5% rate difference saves tens of thousands over the loan.

How accurate is this calculator?

This provides estimates based on standard 28/36 ratios. Actual pre-approval may vary based on credit, loan type, and lender requirements. Always get official pre-approval before making offers.