Purchase prices are based upon a household’s annual income. Generally, a household can expect to pay between 30% and 38% of their gross household income on housing expenses such as mortgage payment, utilities, HOA dues, etc. To determine how much of a mortgage payment you can afford, add the total gross monthly income (before taxes) of all household income-earners over the age of 18 and multiply that number by .30 (30%). Programs may require a down payment of 0-3% and closing costs are often between 2-5% of the purchase price.