🧮 How This Calculator Works
This free calculator estimates your qualifying income as a self-employed borrower and shows approximately how much home you can afford in Arizona.
Important: This is an estimate only. Actual qualification depends on full underwriting review, credit score, debt-to-income ratio, and loan program selected.
After calculating, schedule a consultation for an accurate pre-qualification based on your complete financial picture.
Income Calculator
Year 1 Income Information
Year 2 Income Information
Home Affordability Estimator
Based on your calculated income, estimate how much home you can afford.
Understanding Your Results
Qualifying Income
This is your average monthly income after adding back non-cash deductions. Lenders use this to determine how much mortgage payment you can afford.
Rule of Thumb: Housing payment typically should not exceed 28% of gross monthly income.
Debt-to-Income Ratio
Your total monthly debt payments (including proposed mortgage) divided by gross monthly income. Most lenders require 43-50% or lower for self-employed borrowers.
Lower is Better: Under 40% DTI gets best rates and terms.
Maximum Purchase Price
The highest home price you can likely afford based on your income, debts, down payment, and current interest rates.
Smart Strategy: Stay 10-15% below max to maintain comfortable budget.
How to Improve Your Qualifying Amount
✓ Increase Qualifying Income
- • Take fewer tax deductions next year to show higher income
- • Consider bank statement loan (uses gross deposits, not net income)
- • Add co-borrower's income if applicable
- • Include all income sources (W-2, rental, retirement)
- • Wait another year for income to increase and stabilize
✓ Reduce Debt-to-Income Ratio
- • Pay off credit cards, auto loans, or student loans
- • Avoid taking on new debt before applying
- • Refinance high-payment debts to lower payments
- • Increase down payment to reduce loan amount needed
- • Choose longer loan term (30 vs 15 years) for lower payment
✓ Increase Down Payment
- • 20% down eliminates mortgage insurance
- • Larger down payment = better rates
- • Use gift funds from family members
- • Save more before purchasing
- • Consider down payment assistance programs
✓ Improve Credit Score
- • Pay all bills on time for 6-12 months
- • Reduce credit card balances below 30% of limits
- • Dispute errors on credit reports
- • Don't close old credit accounts
- • Better credit = better interest rates = more affordability
Next Steps After Calculating
Review Your Tax Returns
Make sure the numbers you entered match your actual tax documents. Gather complete 2 years of returns.
Schedule Consultation
Talk with a self-employed mortgage specialist to review your complete situation and loan options.
Get Pre-Approved
Full pre-approval with documentation review gives you confidence to house hunt in your price range.
Ready for an Accurate Pre-Qualification?
Let's review your complete financial picture and explore all loan options