Colorado Springs home affordability calculator
This home affordability calculator estimates your full housing payment with Colorado taxes and insurance, shows your front-end and back-end debt-to-income ratio against VA, FHA, and Fannie Mae guidelines, and runs a VA residual income check. You enter your own interest rate.
Your estimate
Estimates only, based on the numbers you entered. This is not a loan offer, a rate quote, or a commitment to lend. Principal and interest assume a fixed interest rate for the full loan term you entered and a fully amortizing loan. Results don't show an annual percentage rate (APR). Your APR, which includes interest and certain loan costs, will be on your Loan Estimate. The estimate includes estimated property taxes and homeowners insurance, so your actual payment may be higher or lower. Mortgage insurance, if any, may change or end over the life of the loan. Programs, rates, and terms depend on credit, property, and underwriting, and not all applicants qualify.
Want your real number, not a calculator's? I'll run your actual file under VA, FHA, and conventional guidelines.
Start a secure applicationApplying doesn't commit you to a loan. You can also call or text (660) 229-0219 or email csimmons@edgehomefinance.com.
How does this calculator work?
- Loan amount = (purchase price − down payment) × (1 + any financed upfront premium or funding fee, as a share of the loan).
- Principal and interest uses the standard amortization formula with the rate and term you enter: loan × r ÷ (1 − (1 + r)−n), where r = annual rate (as a decimal) ÷ 12 and n = years × 12.
- Mortgage insurance = loan × the annual percentage you enter ÷ 12.
- Property taxes = price × tax rate ÷ 12. The starting rate, 0.50% a year, is Colorado's 2024 effective property tax rate from the Tax Foundation. Metro districts can make a specific address higher; check the El Paso County Treasurer.
- Homeowners insurance = price × 0.60% ÷ 12. 0.6% of the price per year is my Colorado planning rule, not a quote or a state average. Hail and wildfire risk push many Front Range premiums well above that, so replace it with a real quote for the address as early as you can. A higher premium raises your payment and lowers the price you can afford.
- Front-end ratio = total housing payment ÷ gross monthly income. Back-end ratio = (housing payment + monthly debts) ÷ gross monthly income.
- Price ceiling for each guideline = the price at which your housing payment reaches that guideline's maximum housing budget, with your down payment, upfront premium or fee, and mortgage insurance scaling with the price.
- VA residual income = gross income − income taxes (including FICA) − housing payment − maintenance and utilities (14¢ per square foot of gross living area) − monthly debts − job-related costs, compared to VA's West-region table, which covers Colorado. VA reduces the table figure by 5% for active-duty or retired service members, or when the borrower will clearly use nearby military facilities.
Estimates only, based on the numbers you entered. This is not a loan offer, a rate quote, or a commitment to lend. Principal and interest assume a fixed interest rate for the full loan term you entered and a fully amortizing loan.
Which guidelines does it check?
| Program | Front-end | Back-end | Source |
|---|---|---|---|
| VA | None | 41% benchmark; above it, residual income decides. Residual income at least 20% above the guideline avoids the supervisor justification otherwise required above 41% | VA Pamphlet 26-7, Ch. 4 |
| FHA (manual underwriting) | 31%; 37% with one compensating factor; 40% with two, or 40/40 with no discretionary debt | 43%; 47% with one; 50% with two | HUD Handbook 4000.1 II.A.5.d.viii |
| Conventional (Fannie Mae) | No separate cap listed | 36% manual; up to 45% when the borrower meets the credit score and reserve requirements in Fannie Mae's Eligibility Matrix; up to 50% through Desktop Underwriter | Fannie Mae Selling Guide B3-6-02 |
"Residual income is the amount of net income remaining (after deduction of debts and obligations and monthly shelter expenses) to cover family living expenses."
— VA Pamphlet 26-7, Chapter 4: Credit Underwriting
Frequently asked questions
Does this calculator use a default interest rate?
No. You enter the interest rate you've actually been quoted, along with your loan term. Results are estimates only, not a loan offer or a commitment to lend, and actual terms vary.
What tax and insurance rates does the calculator use for Colorado Springs?
It starts with property taxes at 0.50% of the price per year, Colorado's 2024 effective property tax rate from the Tax Foundation, and homeowners insurance at 0.60% of the price per year. 0.6% of the price per year is my Colorado planning rule, not a quote or a state average. Hail and wildfire risk push many Front Range premiums well above that, so replace it with a real quote for the address as early as you can. A higher premium raises your payment and lowers the price you can afford. You can also replace the tax rate with your actual tax bill.
What VA residual income does a family of four need in Colorado?
Colorado is in VA's West region. For loan amounts of $80,000 and above, the guideline is $1,117 a month for a family of four, according to VA Pamphlet 26-7, Chapter 4. VA reduces the guideline by 5% for active-duty or retired service members, or when the borrower will clearly benefit from nearby military facilities. For a family of four, that's $1,061.15 instead of $1,117.
Which debt-to-income limits does the calculator compare against?
VA's 41% benchmark; FHA's manual-underwriting limits of 31/43, 37/47, 40/40, and 40/50 from HUD Handbook 4000.1; and Fannie Mae's total DTI maximums of 36% and 45% for manual underwriting and 50% through Desktop Underwriter.
Read the full guide: How much house can I afford in Colorado Springs?
Related guides: Mortgage preapproval checklist · Mortgage cash to close guide · VA loans in Colorado Springs · FHA and USDA loans · Conventional vs FHA vs VA
Sources (checked October 26, 2026): VA Pamphlet 26-7, Chapter 4 · HUD Handbook 4000.1 · Fannie Mae Selling Guide B3-6-02 · Tax Foundation: Property Taxes by State and County, 2026 · VA.gov: VA funding fee and loan closing costs. The 0.6% insurance figure is Cole's Colorado planning rule, not a published guideline, a state average, or a quote.