How do I know if I'm ready to buy a house?

A mortgage-ready buyer typically has a stable income that keeps housing costs under 28% of gross monthly income, a debt-to-income ratio under 36%, a credit score of 660+, a down payment of at least 5% (ideally 20% to avoid PMI), and 2–6 months of reserves after closing.

What credit score do I need to buy a home?

Conventional loans typically require 620+, FHA loans allow 580+ (or 500 with 10% down), and VA loans have no official minimum but most lenders require 620+. Scores of 740+ unlock the best rates.

How much cash do I really need on hand to close?

Expect to need your down payment plus 2–5% of the home price in closing costs, plus a reserve of 2–6 months of total housing expenses. A $400,000 home with 10% down typically requires $55,000–$70,000 in total cash.

All-in-one home-buying readiness check

Are You Ready to Buy a House?

Answer 5 questions to get your personalized Readiness Score. We combine affordability, DTI, down payment, credit, and cash reserves — then tell you exactly what to fix first.

Reference Rates

30yr Fixed 7.4% 15yr Fixed 6.73% Prime Rate 7.0% Fed Funds 3.88%

Oct 8, 2026 · FRED / Federal Reserve

? Tell us about you

Annual household income (gross)

Monthly debt payments (car, student loans, cards)

Cash available for home purchase (down payment + closing + reserves)

Credit score tier

Target home price

Est. rate for your credit —

No data leaves your browser. All calculations run locally. Results are estimates for educational purposes and don't replace a lender pre-approval.

Your Readiness Score

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Enter your details to see your score

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Fill in your info on the left and the score will update live.

Affordability

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Max you can comfortably afford

Down Payment

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% of target home price

Debt-to-Income

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Back-end DTI (all debts)

Credit

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Score tier → rate impact

Cash Reserves After Closing

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Months of housing covered

If you buy at your target price

Monthly PITI

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Loan amount

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Est. closing

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PMI needed

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Your personalized action plan

Enter your info to see prioritized next steps.

How the Readiness Score works

Lenders don't decide with a single number — they look at several factors together. This tool blends the five dimensions that matter most and weights them the way most underwriters do: affordability and DTI carry the most weight, followed by down payment and cash reserves, then credit score.

•Affordability (25%) — can your income support this home using the 28/36 rule?
•DTI (20%) — total monthly debt as a share of gross income.
•Down payment (20%) — bigger down payment = no PMI and better rate.
•Cash reserves (20%) — months of housing cost left after closing.
•Credit score (15%) — directly moves your interest rate.

Where to go next

Your action plan above highlights the single biggest lever to pull first. Use these focused calculators to dive deeper into each piece:

→ Affordability calculator — pinpoint the exact home price range that fits your income.
→ Down payment calculator — model PMI thresholds at different down payments.
→ Closing costs calculator — budget for the cash you'll need at the table.
→ Debt payoff calculator — build a plan to lower your DTI.
→ Full mortgage calculator — run the final PITI once you're shopping.