One of the first questions buyers ask is simple:
How much house can I afford in Savannah, GA?
The real answer depends on more than just your income. It involves debt, interest rates, insurance costs, property taxes, and the type of loan you choose.
If you’re buying in Savannah or anywhere in Coastal Georgia, here’s how to calculate your real buying power.
Step 1: Start With Your Monthly Income
Lenders use debt-to-income ratio (DTI) to determine affordability.
Most conventional loans allow:
- 36% to 45% of your gross monthly income toward total debt
- Sometimes up to 50% depending on strength of file
Example:
If you earn $6,000 per month before taxes:
At 40% DTI:
You could qualify for up to $2,400 per month in total debt payments.
That includes:
- Mortgage
- Property taxes
- Insurance
- HOA
- Car payments
- Student loans
- Credit cards
Step 2: Subtract Existing Debt
If you already pay:
- $400 car loan
- $300 student loans
- $200 credit cards
That’s $900 monthly debt.
Using the $2,400 example:
$2,400 – $900 = $1,500 available for housing.
That $1,500 must cover:
- Principal and interest
- Property taxes
- Homeowners insurance
- Possibly flood insurance
- HOA dues (if applicable)
Step 3: Factor in Savannah-Specific Costs
Buying in Coastal Georgia includes variables buyers often overlook.
Property Taxes
Taxes vary by county:
- Chatham County
- Effingham County
- Bryan County
If this is your primary residence, you may qualify for savings through the
Georgia Homestead Exemption Guide
That can significantly lower annual tax burden.
Insurance Costs
Savannah insurance can vary based on:
- Roof age
- Flood zone
- Construction type
- Distance from coast
Flood insurance is sometimes required and can change affordability quickly.
Step 4: Down Payment Requirements
Many buyers assume they need 20% down.
Not true.
Common options in Coastal Georgia:
- FHA: 3.5% down
- Conventional: 3% to 5% down options
- USDA: 0% down in eligible areas
- VA: 0% down for eligible veterans
Learn more here:
FHA vs USDA vs Conventional Loans in Coastal Georgia
Your loan type directly affects your monthly payment.
Step 5: What Does That Look Like in Savannah Prices?
Let’s say your housing budget is $1,500 per month.
Depending on:
- Interest rates
- Down payment
- Taxes
- Insurance
You might qualify somewhere between:
$220,000 to $275,000
That range shifts based on market conditions.
For a full overview of the buying process, start here:
Complete Guide to Buying a Home in Savannah, GA
How to Increase Your Buying Power
If you want to afford more house, consider:
- Paying down credit cards
- Increasing down payment
- Improving credit score
- Choosing a different loan product
- Buying in USDA-eligible zones
Small changes can significantly shift your approval amount.
The Smart Way to Know for Sure
Online calculators give rough estimates.
The real answer requires:
- Credit review
- Full income documentation
- Local tax estimates
- Insurance quotes
If you’re thinking about buying in Savannah or Coastal Georgia, start with a real affordability strategy.
Call or text 843.693.1876
Or start with the full buyer roadmap here:
Buying a Home in Savannah, GA