If you’re trying to decide what percentage of your income should go toward a mortgage in Washington, a common starting point is the 28/36 rule. That means keeping housing costs at or below 28% of your gross monthly income and total monthly debts at or below 36%.
But this is a budgeting guideline, not a universal approval standard. In other words, it can help you estimate a comfortable payment for your household, while a lender might still allow a higher percentage based on your overall financial profile.
Before we answer the question, “What percentage of income should my mortgage be in Washington?” let’s start by looking at why this question matters. Why is it so important to determine what percentage of your income should go toward your mortgage payments?
It’s a protective measure, more than anything else. Doing this kind of math ahead of time can help you avoid financial strain later on down the road.
For a typical home buyer in Washington, buying a house represents the largest financial transaction of a lifetime. So it’s important to get it right.
Limiting your mortgage debt to a certain percentage of your annual income can help you achieve the first scenario listed above. It will help you avoid overextending yourself while also reducing the risk of default and foreclosure.
Mortgage-related decisions can affect long-term financial health. So it’s crucial to balance your homeownership costs with retirement savings, investments, and lifestyle expenses.
Responsible budgeting allows for a more comfortable, sustainable financial future.
There is no one-size-fits-all rule when it comes to mortgage affordability in Washington. Some people are comfortable with taking on more debt, while others tend to fare better with less. It varies among individuals.
Even so, it helps to have some general guidelines as a starting point. And that’s what the “28/36” rule for mortgages offers. It gives you somewhere to start.
On the surface, this rule of thumb is fairly straightforward. It states that a person’s housing costs should not exceed 28% of their gross monthly income, while the total debt (including the mortgage) should not exceed 36%.
This rule of thumb could be applied to an individual borrower or a couple. In the case of two co-borrowers, the 28% and 36% limits would apply to their combined income.
To apply this guideline to your own budget, multiply your gross monthly income by 28% to estimate a housing limit and by 36% to estimate a total monthly debt limit.
Just remember that this rule might not apply to all borrowers and mortgage scenarios. Financial advisors often recommend these benchmarks as a starting point.
In short: The 28/36 “rule” can be helpful in some cases. But it’s more of a guideline than a hard-and-fast rule.
Many of the mortgage products available today allow for debt levels that exceed the 28/36 guideline, up to 43% or even higher in some cases. So don’t think that you’re limited to the loan sizes or percentages described above.
When you calculate the 28% housing portion, the key is to include your monthly housing costs consistently and keep them separate from your other monthly debts.
For most borrowers, the housing figure should include the main costs tied to owning the home each month, such as the mortgage payment, property taxes, homeowners insurance, and applicable homeowners association dues.
Other recurring debts—such as car payments, student loans, and credit card minimum payments—do not belong in the 28% housing calculation. Those are part of the broader 36% total-debt side of the rule.
This distinction matters because many people accidentally understate their housing costs by looking only at principal and interest. If you’re using the 28/36 rule to build a realistic budget in Washington, make sure the housing number reflects the full monthly cost of owning the home rather than just the base loan payment.
Whether you’re buying your first home or your next one, the 28/36 rule can help you set a practical borrowing target before you shop.
Calculate your gross monthly income: Start with your total monthly income before taxes and deductions. If two borrowers are applying together, use your combined gross monthly income.
For example, if your household earns $6,000 per month before taxes, that is your gross monthly income.
Estimate your housing budget at 28%: Multiply your gross monthly income by 28% to estimate a housing budget.
For example, $6,000 x 0.28 = $1,680. Using this guideline, your monthly housing costs should not exceed $1,680.
Estimate your total monthly debt limit at 36%: Multiply your gross monthly income by 36% to find the upper limit for all recurring monthly debts combined.
For example, $6,000 x 0.36 = $2,160. This includes housing plus other monthly debt obligations such as car payments, student loans, and credit card minimums.
Subtract non-housing debts to see what housing payment fits: If you already have recurring monthly debts, subtract them from the 36% amount to see how much room remains.
For example, if your non-housing debt totals $500, then the maximum you can afford for housing under the 36% guideline is $2,160 – $500 = $1,660.
Compare both limits, not just one: In this example, the 28% housing cap is $1,680, while the 36% total-debt test leaves $1,660 for housing after other debts are counted. The lower of the two numbers is the more practical budget target.
Use pre-approval as a reality check: Getting pre-approved can show how a lender views your income, debts, and borrowing power. But your approval amount is not automatically the same as your ideal budget. Mortgage lenders in Washington often look at your debt-to-income ratio, while you also need to decide what payment feels sustainable month after month.
Leave room for the unexpected: Even if a payment fits the math today, it still helps to leave breathing room in your budget for maintenance, emergencies, and other ownership costs.
When taking out a mortgage loan in the state of Washington, your lender will review your financial situation to determine how much you can borrow.
To do this, they’ll use an income-related percentage similar to what we just discussed. It’s called the debt-to-income ratio for mortgages.
Definition: The debt-to-income (DTI) ratio compares your total monthly debt payments to your gross monthly income.
You have a front-end and a back-end DTI. Here’s the difference:
Mortgage lenders use the debt-to-income ratio to help determine how much to lend. It is part of the qualification process, not necessarily a recommendation for how much you should feel comfortable spending.
For conventional loans, lenders typically look for a maximum back-end DTI of 36% to 43%. But some mortgage products allow for higher ratios, especially if the borrower has excellent credit and/or cash reserves in the bank.
Those two numbers are not always the same. A lender may approve a payment level that is higher than what feels safe or sustainable for your household budget.
So, the answer to this question, “What percentage of income should my mortgage be in Washington?”, is this: a common recommendation is to keep housing costs at or below 28% of your gross monthly income and total debts at or below 36%. But that’s a budgeting benchmark, not a universal lending limit.
Sammamish Mortgage can help. We serve clients across Washington, Idaho, Colorado, Oregon, and California. Since 1992, we’ve been providing several mortgage programs and products with flexible qualification criteria to borrowers across the Pacific Northwest. Visit our website to get an instant rate quote or to use our online mortgage calculator. Or, reach out to us if you are ready to get pre-approved for a mortgage.
A common budgeting guideline is the 28/36 rule. That means keeping monthly housing costs at or below 28% of gross monthly income and total monthly debts at or below 36%. This is a starting point for budgeting, not a universal approval limit.
Yes. Some lenders and loan programs allow debt levels above the 28/36 guideline, sometimes up to 43% or higher. Qualification depends on the full financial profile, including income, debts, credit, and cash reserves.
Yes. The housing portion should include the main monthly costs of owning the home, including the mortgage payment, property taxes, and homeowners insurance. Looking only at principal and interest can understate the true monthly housing cost.
Yes. If the home has homeowners association dues, those should be included in the monthly housing figure used for the 28% calculation.
Use gross monthly income when applying the 28/36 rule. Gross income means income before taxes and other deductions. If two borrowers are applying together, use the combined gross monthly income.
A personal housing budget is the payment level that feels sustainable for the household, while a lender’s debt-to-income limit is part of the qualification process used to decide how much a borrower might be approved to borrow. A lender may approve a higher payment than what feels comfortable for the monthly budget.
The 36% side of the rule includes housing costs plus other recurring monthly debts. That can include car payments, student loans, and credit card minimum payments.
Front-end DTI looks only at housing-related costs compared with gross monthly income. Back-end DTI looks at all recurring monthly debt payments, including housing and other debts, compared with gross monthly income.
Start with gross monthly income. Multiply that number by 28% to estimate a housing budget and by 36% to estimate a total monthly debt limit. Then subtract any non-housing debts from the 36% amount and compare the result with the 28% housing amount. The lower number is the more practical target.
Not necessarily. Pre-approval shows how a lender views income, debts, and borrowing power, but it does not automatically mean that payment is the best fit for the household budget. Many buyers leave room for maintenance, emergencies, and other ownership costs when setting a comfortable payment.
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