Before you fall in love with a listing, it helps to know your ceiling. This calculator estimates the top purchase price your income supports, using the same debt-to-income math lenders rely on.
Estimate only — not financial advice. Confirm rates, taxes, and figures with your lender, accountant, and Brian before acting.
How the affordability number is calculated
The tool uses the 36% back-end debt-to-income (DTI) ratio, a common conservative lending guideline. It takes 36% of your gross monthly income as the ceiling for all debt payments, subtracts your existing monthly debts, and devotes the rest to housing — your full PITI.
- PITI means Principal, Interest, Taxes, and Insurance — the four parts of a typical monthly housing payment.
- Back-end DTI counts housing plus all other debts (car loans, student loans, credit cards) against your income.
- From your housing budget, the tool backs out the maximum loan and adds your down payment to estimate the top purchase price.
Property tax in Ventura County runs near the base 1% plus local assessments, so a figure around 1.1–1.25% is a reasonable starting estimate; confirm the exact rate for any specific home.
Why your real number may differ
- Loan program: FHA and some conventional programs allow higher DTI with strong credit or reserves, raising your ceiling.
- Mortgage insurance: with less than 20% down you may pay PMI or FHA MIP, which this simple tool does not add.
- HOA dues and Mello-Roos: many Simi Valley and Ventura County communities carry these, and lenders count them against your budget.
- Credit and reserves: a strong file can stretch the limit; a thin one can shrink it.
Use the result as a starting point, not a pre-approval
This estimate tells you roughly where your budget sits so you can shop in the right range. The number that actually matters is your lender's pre-approval, which accounts for your full credit profile, the specific loan program, and the real tax and HOA figures on each home. With the Simi Valley median around $850,000, knowing your ceiling early helps you focus on homes you can confidently afford.
Frequently Asked Questions
What income do I need to afford an $850,000 home in Simi Valley?
It depends on your down payment, debts, and rate, but with roughly 15–20% down at about 6.7% and modest other debts, buyers typically need a gross income in the high-$100,000s to low-$200,000s to stay within a 36% DTI. Enter your numbers above for a tailored estimate.
What is a back-end DTI ratio?
It is the share of your gross monthly income that goes to all debt payments — housing plus car loans, student loans, and credit cards. This tool uses 36%, a common conservative cap. Some loan programs allow higher.
Does this include HOA dues or Mello-Roos?
No. Many Ventura County communities carry HOA dues or Mello-Roos assessments, and lenders count them against your budget. If the homes you are considering have them, your real maximum price will be lower than shown.
Is this the same as a mortgage pre-approval?
No. It is an estimate to help you shop in the right range. A lender pre-approval uses your full credit profile and the exact costs on each home, and it is what sellers take seriously when you make an offer.
