How Much House Can You Afford in Maine on Your Income?

Start with the payment you can live with

List your monthly take-home income and regular expenses, including savings, transportation, health costs and any support obligations. Decide how much room you want for unexpected expenses before choosing a housing target. A lender’s maximum approval is not a requirement to spend that amount.

Include principal and interest, property taxes, homeowners insurance, mortgage insurance when applicable and association charges. Add utilities and a maintenance allowance in your household budget even if those items are not collected with the mortgage. Use property-specific tax and insurance information when you have an address.

Check the debt-to-income calculation

Debt-to-income ratio, or DTI, compares monthly debt payments with gross monthly income before taxes and deductions. The CFPB explains the calculation and notes that limits differ by lender and loan product. Do not treat one ratio quoted online as a universal approval rule.

For an annual salary of $70,000, gross monthly income is about $5,833. Add the proposed housing obligation and the other debts the lender counts, then divide by that income. Ask the lender to confirm which payments and income sources apply to your application.

Work through a $300,000 illustration

Example only, not a rate quote or lending decision: assume a $300,000 purchase, 10% down ($30,000), a $270,000 loan and a 30-year fixed interest rate of 6.5%. Principal and interest would be approximately $1,706.58 per month.

Now assume $300 monthly for property taxes, $150 for homeowners insurance and $100 for mortgage insurance, with no association dues. The resulting housing amount is about $2,256.58. With another $400 in counted monthly debt, total debt payments would be $2,656.58, or about 45.5% of $5,833 gross monthly income. All tax, insurance and mortgage-insurance figures here are hypothetical; an actual property and loan may differ materially.

Test what changes the result

A different rate, down payment, tax bill, insurance premium or debt load changes the calculation. Ask for side-by-side estimates using the same property and loan term so the tradeoffs are clear. A larger down payment may lower borrowing costs while leaving less cash for repairs and emergencies.

Also test the household budget after taxes and deductions. The example above does not include groceries, childcare, utilities, repairs or retirement saving. A DTI calculation can help explain underwriting, but it cannot tell you whether the payment leaves enough room for your life.

Keep upfront cash separate from the monthly payment

Your down payment is only one use of savings. Request estimates for closing costs, prepaid expenses, escrow funding, inspections and moving, then show the money left afterward. Review the CFPB Loan Estimate guide when comparing offers.

Before increasing your price range, ask the lender for a property-specific estimate and write a budget using actual quotes. Questions such as whether a $100,000 salary supports a $400,000 home belong in that same calculation, rather than a separate rule of thumb. Calculations and resources reviewed November 3, 2026.

Get the guide and bring your numbers

Get my free Maine Home Buyer’s Guide through the Home Buyer Guide name-and-email form. Use it to organize the purchase steps, then bring your monthly comfort range and financing questions when we discuss suitable homes.