The short answer
Lenders generally want your total housing payment at or under about 28% of gross monthly income, and all monthly debts including housing under roughly 36% to 43%. Your housing payment includes principal, interest, property taxes, insurance, and any HOA dues — not just the mortgage. In Florida, insurance and association dues often consume 20% to 30% of that payment, which lowers the purchase price you qualify for compared with other states.
- Housing ratio guideline
- ≤ 28% of gross income
- Total debt ratio
- 36%–43%
- Payment includes
- P&I + taxes + insurance + dues
- Reserves lenders like
- 2–6 months
01
The two ratios that decide your number
Affordability is mostly arithmetic. Lenders compare your proposed housing payment to income (the front-end ratio) and all your monthly debt payments to income (the back-end, or debt-to-income, ratio). Car loans, student loans, credit card minimums, and child support all count; utilities and groceries do not.
| Gross monthly income | 28% housing payment | Rough all-in comfort zone |
|---|---|---|
| $5,000 | $1,400 | Conservative target for a first purchase |
| $7,500 | $2,100 | Workable for many Hollywood condos |
| $10,000 | $2,800 | Opens single-family in several neighborhoods |
| $15,000 | $4,200 | Waterfront and larger homes come into range |
Why the table shows payments, not prices
The same payment buys wildly different prices depending on rate, taxes, insurance, and dues. A $2,100 payment might support a $340,000 condo with $500 monthly dues or a $420,000 home with none — which is why you price the payment first and back into the price second.
02
What actually makes up the payment
- Principal and interest — the loan itself
- Property taxes — set by Broward County millage and assessed value
- Homeowners insurance — highly variable by roof age and construction
- Flood insurance — required in many coastal zones
- Mortgage insurance — when you put down less than 20% on a conventional loan
- HOA or condo dues — not in the mortgage, but very much in your budget
03
The Florida factors that shrink your buying power
Two identical incomes buy less house here than inland. Insurance premiums on an older roof can run several times what a newer roof costs to insure, and condo dues in beachfront buildings routinely exceed several hundred dollars a month before any special assessment.
- Get an insurance quote on any specific property before you fall in love with it
- Ask for the association's current dues, budget, and reserve status
- Check whether an approved special assessment carries past closing
- Confirm the flood zone and whether flood coverage is required
- Recalculate taxes on your purchase price, not the seller's assessed value
04
Approval amount versus comfortable amount
Lenders approve based on ratios, not on your life. Childcare, tuition, travel, and savings goals do not appear in the calculation. Decide your own ceiling first, then confirm the lender supports it when you get pre-approved.
05
How to increase what you can afford
Three levers move the number materially: lower monthly debt, a higher credit score, and more cash down. The score piece is covered in what credit score you need to buy a house, and the cash side in how much money you need to buy a house.
- Pay off a car loan and free up its full monthly payment in your ratio
- Raise your score into the next tier to lower the rate
- Increase your down payment to reduce or remove mortgage insurance
- Target newer roofs and lower-dues buildings to cut fixed monthly costs
- Consider a longer term to lower the payment, accepting more total interest
A lender tells you what you can borrow; a local agent tells you what those homes actually cost to own. Ask local realtors in Hollywood, FL for real insurance quotes and HOA dues in the buildings you are considering before you set your ceiling.
The same rules apply for clients across Miramar and Dania Beach and the surrounding South Florida communities.