How Much House Can I Afford in CT?

What DTI means, in plain words

Your debt-to-income ratio, or DTI, is your monthly debt payments divided by your gross monthly income, the amount before taxes. Lenders look at it two ways. The housing ratio counts only the new house payment: principal and interest, property tax, homeowners insurance, mortgage insurance and HOA dues. The total ratio adds the rest of your debts: car loans, student loans, card minimums, child support and alimony. Rent you will stop paying, utilities, phone bills and groceries do not count.

So if you earn $9,000 a month before taxes and pay $600 a month on a car and student loans, those debts already use about 7% of your income before the house.

The three bands, and where they come from

Debt-to-income bands in the calculatorUpdated October 2026

Band	Housing	Total	Where it comes from
Comfortable	28%	36%	The 28/36 rule of thumb. 36% is also Fannie Mae's base limit for a manually underwritten loan.
Typical	No separate cap	43%	A common guideline, and the general QM limit until the CFPB replaced it with a price-based test in 2021.
Stretch	No separate cap	Up to 50%	Fannie Mae's maximum through Desktop Underwriter, with strong compensating factors.

The 43% history is from the CFPB's General QM final rule, effective March 1, 2021 (linked in the sources under the calculator). Source: Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios (April 2, 2025).

In my experience, a file in the typical band is routine when credit and savings are solid. The stretch band needs more: a strong score, money left after closing, sometimes a larger down payment. FHA, VA and USDA loans set their own limits, and part of my job is telling you which one fits your file.

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Why the town changes the answer

Property tax sits inside the housing payment, so the same budget buys less house where the mill rate is high. For every $100,000 of appraised value, the yearly tax is about $686 in Salisbury, $2,007 in Milford and $4,897 in Hartford. Try each town on your list; the difference in what you can afford is often bigger than buyers expect.

Down payment, PMI and cash to close

With less than 20% down on a conventional loan, PMI is added to the payment. The calculator starts it at 0.6% of the loan a year, the middle of Freddie Mac's typical range, and you can change it. Keep cash for closing too: the attorney, title insurance, recording fees and prepaids. The mortgage calculator estimates those for any town, and each band above links straight to it. CHFA down payment assistance can help eligible buyers with both.

How much house can I afford, or how much should I borrow?

A lender's maximum is not a budget. DTI ignores child care, retirement savings, commuting and the repairs every older Connecticut house needs, so many buyers settle at the comfortable band on purpose. Once you have a range, a pre-approval turns it into a number backed by your credit and documents, which is what sellers and agents want to see.

What this leaves out

Your credit score, which moves the rate, the PMI cost and how far a lender will stretch.
Loan limits. Conforming and FHA limits cap the loan by county; see FHA loans in Connecticut.
Savings left after closing, which lenders call reserves.
Fire and special district taxes, and condo special assessments.
How income is counted. Overtime, bonus and rental income need a history, and self-employed borrowers are figured differently.

The questions I get most

01How much house can I afford on a $100,000 salary in Connecticut?

It depends on your debts, down payment, town and the rate on your quote, so no single number is honest. At $100,000 a year your gross monthly income is about $8,333. The comfortable band allows about $2,333 a month for the whole housing payment, less if other debts push your total past 36%. Enter your numbers above and the calculator turns that budget into a price for your town.

02What debt-to-income ratio do mortgage lenders want?

Lower is easier. Fannie Mae's base limit for a manually underwritten loan is 36%, it can go to 45% with the required credit score and reserves, and its automated underwriting allows up to 50%. 43% is a common guideline many lenders still use. FHA has its own limits. Where you land within those depends on the rest of your file.

03Is 43% still the maximum DTI for a mortgage?

No. 43% was the cap for a general qualified mortgage until the CFPB replaced it with a test based on the loan's pricing, effective March 1, 2021. It remains a common guideline. Fannie Mae can approve up to 50% through its automated underwriting when the rest of the file is strong.

04Does property tax count in my debt-to-income ratio?

Yes. Lenders count the whole housing payment: principal and interest, property tax, homeowners insurance, mortgage insurance and HOA dues. That is why a high-tax town lowers the price you can afford, and why this calculator asks for the town and uses its mill rate.

05Do student loans count toward DTI?

Yes. Lenders use the monthly payment on your credit report or your repayment plan. If a loan is deferred or shows no payment, each loan program has its own rule for the figure to count, often a small share of the balance. Bring your statements and I will run it the way each lender would.

06Should I buy at the stretch band?

Only with your eyes open. The stretch band is what automated underwriting can allow with strong compensating factors, not a recommendation. If the payment there would leave little room for savings, repairs or surprises, aim lower or keep saving toward a larger down payment.