How much house can I actually afford?
Not what a lender will approve at the outer edge. What fits your income, your debts, and Arkansas carrying costs without squeezing the rest of your life.
Ready to see what this buys in Central Arkansas?
Send us your range and a Rackley Realtor will show you what is actually on the market at that number, plus what it takes to win it.
Questions, answered honestly.
How is the maximum price calculated?
We use the two debt-to-income ratios lenders actually underwrite to. The front-end ratio caps your full housing payment as a share of gross monthly income. The back-end ratio caps your housing payment plus every other monthly debt. We take whichever limit binds first, then solve backward for the highest price whose full payment, including Arkansas taxes, insurance, and PMI, fits underneath it.
Which comfort level should I pick?
Conservative at 28/36 is the classic conventional guideline and the one that leaves room to live. Moderate at 31/41 is common ground. Stretch at 36/45 is closer to the outer edge of what many programs will approve, and approval is not the same thing as comfortable. If the stretch number is the only one that reaches your target, that is useful information about the target.
Does this replace a pre-approval?
Not at all, and please do not treat it that way. Lenders look at credit score, employment history, reserves, loan program, and documentation we cannot see here. Get pre-approved before you shop. In a multiple-offer situation a strong pre-approval letter is worth more than another few thousand in price.
Why does my number drop when I add a car payment?
Because the back-end ratio counts it. As a rough rule, every $100 of monthly debt costs you somewhere around $15,000 to $18,000 of buying power at current rates. Paying off a small balance before you apply can move your range more than you would guess.
What about down payment assistance in Arkansas?
The Arkansas Development Finance Authority runs programs, including the ADFA Move-Up loan and down payment assistance, and there are USDA rural options across much of Central Arkansas plus VA loans for those who qualify. Eligibility and terms change, so ask your Rackley Realtor for a current lender introduction rather than relying on anything you read online, here included.