If you’re shopping Greater Phoenix in 2026, “How much home can I afford?” is the right question — and the wrong place to answer it is a viral payment screenshot.
I’m Michael McDermott, a mortgage loan originator with The McDermott Team at NEXA Lending (NMLS 184065). I work with buyers across the Phoenix metro and in the states where I’m licensed. This post is a framework, not a calculator printout. I won’t invent a rate, invent a payment, or tell you “you can afford $X” on a blog page that ages overnight.
The goal is simpler: know which pieces belong in the monthly picture, which pieces lenders care about, and when to Talk or Apply so we run your situation against current guidelines.
Affordability is a stack, not a sticker price
Purchase price is only the top line. In Phoenix, the monthly housing cost that actually hits your budget usually includes:
- Principal and interest on the loan
- Property taxes (county and local — they vary by parcel)
- Homeowners insurance
- Mortgage insurance when the loan program and down payment require it
- HOA or condo dues when the community has them
- Sometimes utilities or special assessments that don’t show on a listing card
Two homes at the same list price can feel completely different once taxes, insurance, and HOA land. That’s why “I can afford a $Y house” is incomplete until you know the full monthly stack for that address.
What DTI is doing in the conversation
Lenders look at debt-to-income concepts — roughly, how proposed housing costs and other debts sit next to qualifying income. Guidelines differ by program (conventional, FHA, VA, USDA, jumbo, and specialty lanes). I’m not going to print a magic DTI percentage here; those boxes move with investor overlays and your full picture.
What I will say: a comfortable personal budget and a guideline-qualified payment are related, but not identical. You might feel stretched before a guideline says stop — or the reverse. We walk both.
Phoenix-specific wrinkles (without fake promises)
Greater Phoenix isn’t one market. A Scottsdale HOA community, a newer master-planned HOA in the East Valley, and a non-HOA resale in a different tax jurisdiction don’t share the same monthly extras. Insurance quotes move with roof age, claims history, and carrier appetite. Taxes aren’t a flat “Phoenix rate.”
So when a friend says “people are buying at $Z,” ask: payment stack or purchase price? And: which program assumptions?
If you want deal framing on offers — credits, buydowns, builder packages vs resale — I wrote about comparing the full transaction here: Phoenix buyers: compare the deal, not just the price.
Down payment, reserves, and cash to close
Affordability isn’t only the monthly number. Closing needs cash for down payment, closing costs, prepaid items, and sometimes reserves. Gift funds, seller credits, and assistance programs can change the picture — when guidelines allow. First-time paths live on first-time buyer. I won’t print a stale assistance chart; we’ll map what fits your county and occupancy.
A sane order of operations
- Rough lifestyle budget — What monthly housing number still lets you sleep?
- Talk or Apply — We translate that into program options and a realistic range for you, with current pricing context — not a blog promise.
- Shop homes inside a range that includes taxes and HOA, not just list price.
- Re-check when the property is known — insurance and tax estimates firm up with an address.
Prefer a conversation first? Book a call. Ready for the application? Apply. One application, one credit pull, access to 300+ lenders — I walk you through the program and the guidelines that apply to your situation.
Questions worth bringing to a call
- What’s the monthly housing number that still feels sane after groceries, childcare, and debt payments?
- Are you aiming at HOA communities, non-HOA resale, or new build?
- Any gift funds, stock compensation, or variable income we should plan for?
- Primary home only — or also an investment purchase later?
- Any credit events or condo/HOA questionnaire concerns already in play?
What I won’t do on this page
- Quote “you can afford $X”
- Publish a payment table that pretends rates are frozen
- Treat your income story as a commodity slogan
Weird situation — self-employed, condo project issues, credit event, investment occupancy? Start at Resources & guides or the homepage FAQ, then come back to Talk or Apply.
Builder incentives and “affordability theater”
New-home marketing in the Valley often leads with a payment or a temporary rate. That can be useful — and it can hide the full stack. Ask what happens when a temporary reduction expires, whether discount points are baked in, and how taxes and HOA were estimated. Compare that package with at least one alternative structure on the same purchase price and down payment. Affordability is the payment you can live with and the guideline path that actually closes — not the prettiest flyer number.
If you’re also weighing pre-qualification letters vs a real pre-approval before you write offers, read pre-approval vs pre-qualification. Shopping on a soft estimate is one of the fastest ways to discover your “affordable” number wasn’t solid.
Bottom line
Phoenix affordability is a framework: full monthly stack + guideline fit + cash to close + the actual house. I’ll walk those pieces with you. The number that matters is the one we build from your documents and today’s options — not a viral screenshot.