Percentage rules for home buying?

Follow the 28/36 Rule. 28%: Your total monthly housing payment (Principal, Interest, Taxes, Insurance) should not exceed 28% of your gross (pre-tax) monthly income. 36%: Your total debt—housing plus car loans, student loans, and credit cards—should not exceed 36% of your gross income. Extra Tip: In 2026, lenders are more flexible (sometimes up to 45%), but sticking to 28/36 ensures you aren't "house poor."

I would recommend speaking to a local lender that can walk your through all the best options. Do not recommend online lenders as they are most likely not looking at your specific market and the details of your personal needs. When talking with a local lender to get a pre-approval, they may be able to point you in the direction of local programs that are available to help with 1st time home buyers or grants that might help to get your real estate goals met for your circumstances. There might be options for a 100% USDA loan. But a local lender can answer all these questions for you specific to your situation.

Your best bet is to get pre-approved with a Lender. They will take the necessary steps to check your credit, income and expenses and let you know what you qualify for and if you need to work on your DTI Ratio (Debt to Income.) Different loan programs have different rules and your lender is your best resource!