As a rule of thumb, most Phoenix buyers can afford a home priced around three to four times their annual household income, with a total monthly housing payment at or below 28 percent of gross monthly income. The exact number depends on your down payment, debts, credit score, and the loan program you choose.
What is the 28/36 rule and how does it work?
Lenders use two ratios to size your loan. The first says your monthly housing payment, which includes principal, interest, property taxes, and insurance, should stay at or below 28 percent of your gross monthly income. The second says your total monthly debt, including the mortgage, car loans, student loans, and minimum credit card payments, should stay at or below 36 percent.
On a $9,000 per month household income, the 28 percent guideline points to roughly a $2,520 housing payment. In Phoenix in 2026, that supports a home in the mid $400,000s with a conventional loan and a moderate down payment.
How much should you put down on a Phoenix home?
You do not need 20 percent. Conventional loans start at 3 percent down, VA loans require zero down for eligible veterans, and many buyers put down 5 to 10 percent. Putting down less keeps cash in reserve, while putting down 20 percent removes private mortgage insurance and lowers your monthly payment.
- Conventional: as little as 3% down
- VA: 0% down for eligible veterans
- Jumbo: typically 10% or more for higher-value homes
- Bank statement: flexible options for the self-employed
What costs should you budget beyond the mortgage?
Your monthly payment is more than principal and interest. Budget for Arizona property taxes, homeowners insurance, and, if applicable, HOA dues and mortgage insurance. A complete pre-qualification with High Place Mortgage shows your true all-in monthly number before you tour a single property.
Frequently Asked Questions
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