McKay Capital · Version 12
VERSION 12 · MOCKUP-LED DRAFT
CASHDown + costs
CREDITScore + debts
BUYING POWER
INCOMEPre-tax
Closing costs · View breakdown

HOW QUALIFICATION WORKS

PILLAR 1: CASH & COSTS

Closing costs

Cost of the transaction itself. Paid in addition to the down payment.

—
Effect & details

Cash required includes the down payment, closing costs, and prepaid items. Eligible seller or lender credits may offset some costs.

Down payment

The cash you put toward the purchase price.

%
Effect & details

Put down as much as you can afford without hurting your quality of life. A key goal is to reduce or avoid mortgage insurance, which usually goes away at 20% down on conventional loans. You can change this figure here or in the calculator above; both use the most recent entry.

PILLAR 2: PRESSURE & REPUTATION

Monthly debts

Monthly payments on debt you already owe.

Effect & details

Higher debt payments use more of the income available for a new housing payment.

Credit score

Your history of managing credit and repaying debt.

Effect & details

Scores vary by scoring model and loan product. An app score may differ from a mortgage score.

PILLAR 3: ABILITY

Monthly income

Stable, documentable income before taxes.

Effect & details

Income entered here is a planning estimate. A lender must review which income can be used.

Income benchmark

—

2 × housing + other debt payments.

Additional scenario details

These two fields are displayed in your snapshot; they do not affect the draft comparison yet.

KEY CONCEPTS THOSE INPUTS PRODUCE

DTI

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Debt-to-income ratio

What does this mean?

Housing plus other monthly debt payments, divided by income before taxes.

Conventional · Draft requirements

Draft thresholds only: not verified loan-program rules.

Programs matching this draft baseline

Add income and credit score.

FHA, VA, and other program rules will be added when supplied. No eligibility decision is made here.

WHAT TO DO WITH THOSE

Keep in mind

Maximum ≠ optimal.

More

A payment that fits a ratio may still leave too little for your everyday budget. Include savings, repairs, and other spending in your plan.

What counts as debt?

See examples

Start with auto and student loans, credit card minimums, personal loans, and other property payments. Do not count this home twice. Utilities, food, insurance, and subscriptions still matter for your budget, even when not entered as debt payments here.

How do I know my score?

More

You have different scores under different models. A mortgage review can clarify the scores used for your loan.

The 2:1 rule

More

This mockup uses income equal to twice housing plus other debt payments: a 50% DTI illustration. It is not a universal requirement, approval rule, or spending target.

THE CAPACITY EQUATION

Proposed housing payment—Mortgage + taxes + insurance + HOA
+
Other monthly debts—
=
Total monthly debts—
× 2 =
Pre-tax income benchmark—Illustrative, not approval

Planning estimates only. Starting rate is an example, not a current quote. Original calculator assumptions and help text are unchanged. Draft comparison thresholds and mortgage insurance estimates are placeholders. Add verified licensing disclosures before publishing. Income ratio and credit score definitions: CFPB.

What counts as monthly debt?

✔ Counts

  • Other mortgages + taxes + insurance
  • Auto and student loans
  • Credit card minimums
  • Personal loans

✖ Exempt

  • Utilities
  • Auto / health insurance
  • Streaming and subscriptions
  • Food and groceries
  • Etc.

Optional: enter your monthly payments. Do not include the home you are buying.

Total: $0

How to estimate your FICO

If your banking app shows a score, take that number and subtract 20 to 40 points. Some people see a bigger gap.

Apps often use a different scoring model than mortgage lenders. Treat this as a cautious guess. A lender's credit check gives the real number.

Estimated mortgage score
—
Enter your app score to see a range.
Uses the low end of the range.