Here’s how to build a homebuying budget that works in today’s world, not yesterday’s.

1. Start With Your Monthly Lifestyle Number

Forget percentages for a minute. Ask yourself:

How much can I comfortably spend on housing each month, while still living the life I want?

Factor in:

• Your current rent or mortgage
• Fixed expenses like groceries, insurance, and transportation
• Loan or debt payments
• Savings and emergency funds
• Travel, hobbies, or childcare

Your target number doesn’t have to be exactly 30%—but it should help you feel stable, secure, and sane.

2. Understand the True Cost of Buying

That $400,000 listing price? It’s just the starting point. Your monthly payment will also include:

• Mortgage principal and interest
• Property taxes
• Homeowners insurance
• Private Mortgage Insurance (PMI) if your down payment is under 20%
• HOA fees (if applicable)
• Maintenance and utilities

One of our preferred lenders can walk you through these numbers before you fall in love with a home, so there are no surprises later.

3. Use the 30% Rule as a Red Flag, Not a Rule

Spending more than 30% of your income on housing doesn’t automatically spell trouble, especially if you have little to no debt elsewhere.

But if you’re creeping toward 50% and juggling credit cards, car loans, or an unpredictable income, that’s a red flag—time to pause, reassess, and maybe adjust your price range.

4. Get Strategic (and Local)

Affordability isn’t just about price, it’s about opportunity.
Here’s how to tip the scales in your favor:

• Broaden your search radius: A 15-minute drive can mean a 15% price drop.
• Explore new construction: Homebuilders, like Berks Homes, often offer incentives like rate buydowns or closing cost assistance. At Berks Homes, we also provide our Hometown Heroes Incentive, Military Appreciation Bonus, and a Homeowner Referral Reward. 
• Look for creative financing: From temporary rate buydowns to seller credits, today’s market is starting to shift back toward buyer-friendly terms.
• Start with what you can afford now: Your first (or next) home doesn’t have to be your forever home.

Bottom Line: Budget Personally, Not Just Percentage-Wise

The 30% rule may be outdated, but the underlying goal remains the same. You want a home that fits your life, not just your loan approval.

And the good news? That’s still possible in 2025. You simply need a more personalized and flexible strategy. Whether you're a first-time buyer or navigating your next move, we are here to help. We have preferred lenders who are here to help you navigate your budget and preapproval process! 

Looking to build or buy? 

Check out the Berks Homes new construction home communities in Pennsylvania, as well as our Build On Your Land option!