20% Down Payment & PMI Waiver Calculator

See how a 20% down payment eliminates PMI and expands your home buying power

Income & Financing Details

Qualification & Max Purchase

Maximum Qualifying Home Price
$476,259
Maximum Loan Pre-Approval: $376,259
$3,033 / mo
Max Qualifying PITI Payment
21.0%
Down Payment Ratio
Gross Monthly Income: $10,833.33 / mo
Principal & Interest (P&I): $2,440.41 / mo
Estimated Property Taxes: $476.26 / mo
Homeowners Insurance: $116.67 / mo
Private Mortgage Insurance (PMI): $0.00 (PMI waived >= 20% down)< 20% down)

Mortgage Pre-Approval Comparison by Tier & Income

Gross Income Conv (28/36) FHA (31/43) VA (41% DTI) Max PITI (Conv)
$60,000 $258,073 $278,111 $291,469 $1,400
$80,000 $320,412 $347,129 $382,751 $1,867
$100,000 $382,751 $416,146 $474,032 $2,333
$120,000 $445,089 $485,164 $540,781 $2,800
$150,000 $515,473 $562,925 $670,484 $3,500
$200,000 $663,102 $726,372 $886,656 $4,667

Key Fannie Mae, HUD/FHA & CFPB Underwriting Checkpoints

  • Fannie Mae Selling Guide (B3-6-02) & QM Rules: Conventional loans establish baseline qualifying limits of 28% front-end and 36% back-end DTI, extendable up to 45%–50% with automated underwriting compensating factors.
  • HUD Handbook 4000.1 (FHA Underwriting): FHA financing expands accessibility with higher 31% front-end and 43% back-end benchmarks with down payments as low as 3.5%.
  • Homeowners Protection Act (12 U.S.C. § 4901): Private mortgage insurance (PMI) is legally cancellable at 80% LTV and automatically terminates at 78% LTV, saving hundreds monthly.

Explore Mortgage Qualification Scenarios & Guidelines

📊 Mortgage Pre-Approval by Household Income

$60,000 Income (Max Home Price & PITI) $80,000 Income (Max Home Price & PITI) $100,000 Income (Max Home Price & PITI) $120,000 Income (Max Home Price & PITI) $150,000 Income (Max Home Price & PITI) $200,000 Income (Max Home Price & PITI)

📌 Underwriting DTI Rules, FHA/VA & 20% Down Guides

FHA (31/43 DTI) vs Conventional (28/36 DTI) VA Loan Qualification ($0 Down • 41% DTI) 28/36 Qualifying DTI Rule & Debt Impact 20% Down Payment & PMI Elimination Guide

How Mortgage Qualification Works

1

DTI Evaluation

Lenders restrict your maximum monthly mortgage payment so total debts stay within 36% to 45% of income.

2

Full PITI Sum

Approval amounts factor in principal, interest, local property taxes, homeowners insurance, and PMI.

3

Down Payment Power

Reaching a 20% down payment eliminates PMI entirely, reducing monthly fees and boosting pre-approval.

Frequently Asked Questions

Why is putting 20% down advantageous for mortgage qualification?

A 20% down payment eliminates private mortgage insurance (PMI) premiums, lowers monthly payments, secures lower interest rates, and maximizes allowable loan pre-approval.

What federal law governs the cancellation of PMI?

The Homeowners Protection Act of 1998 mandates that lenders cancel borrower-paid PMI when the principal balance reaches 78% of original property value, or upon request at 80% LTV.

How much does PMI typically cost per month?

Conventional PMI generally costs between 0.3% and 1.5% of the original loan balance annually, translating to $125 to $350 monthly on typical starter-to-midlevel mortgages.