Diagnostic
House Poor Risk Score.
A single number for the question lenders don't ask: would this home still work tomorrow if rates moved, income dropped, or a major repair landed?
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House Poor diagnostic
A single number for the question lenders don't ask: would this hurt if anything changed?
Lenders evaluate whether you can afford a home today, with everything as it is. The House Poor Risk Score evaluates whether the home would still work tomorrow — if rates moved, if income dropped, if a major repair landed.
Why a composite score?
Looking at any single risk factor in isolation gives a misleading read. A buyer with 12 months of reserves but a 50% stress DTI is still in trouble; a buyer with 4 months of reserves and a 28% comfortable DTI is usually fine. The risk score combines all four signals into one diagnostic — the largest single number you should look at when deciding whether a specific home is the right one.
How to use the score
- Under 25 — low risk. The home fits the household. Reserves cushion any normal life event. Move forward.
- 25–49 — low–moderate. Workable. Watch the highest-scoring factor; it's the one that would break first.
- 50–74 — elevated. Some structural weakness. Consider a less expensive home, more reserves, or paying down non-housing debt before signing.
- 75–100 — high risk. The numbers technically check out for the lender, but the household has very little margin. A small change in income, rates, or unexpected expense would force a hard decision.
What changes each factor most
- Reserves: the number that improves fastest with savings. Adding $5,000 of liquid reserves can move the factor from "moderate" to "low" on a typical household.
- Rate sensitivity: matters most for ARM holders, near-term refinancers, and anyone with a small loan where a 1-point shock is a small absolute number. Fixed-rate buyers with no refinance plans can largely ignore this factor.
- Hidden cost exposure: high-tax states (Texas, NJ, IL), HOA-heavy properties, and condos with large reserves contributions push this number up. There's not much you can do — it's a property-and-state characteristic — but you can choose properties where it's lower.
- Stress DTI: the most under-buyer-control factor. Reducing other debt directly improves it. Increasing income improves it. Choosing a less expensive home improves it.
Pre-purchase use: run the score for any home you're seriously considering, before the offer goes in. If the score is in the elevated range, the question isn't "can I get the loan" — the lender will probably approve it. The question is whether the house would still feel right a year in.
FAQ
Common questions about house poor risk score.
Why does the calculator use a stressed rate scenario?
Because the most common cause of mortgage stress isn't the original rate — it's the gap that opens when rates rise and you're forced to refinance, sell, or re-qualify. The +1 percentage point stress test mirrors what underwriters look at when assessing risk on adjustable products and is a fair gut-check for fixed-rate borrowers planning future refinances.
Can I drive my score below 10?
Possible but not the goal. A score of 10–25 is comfortable. Driving lower usually requires either substantial over-saving or substantial under-buying. The point of the score is to find the home that fits, not to optimize the metric.
How is this different from the affordability calculator's risk score?
Same math. The affordability calculator computes the risk score on its own Comfortable-tier output. This standalone calculator lets you input your own numbers — useful if you already have a specific home in mind and want to grade it directly.
Should I use this for a home I already own?
Yes — useful for stress-testing existing exposure. Plug in your current housing payment and reserves and see how the score reads now vs how it read at purchase. Property tax and insurance creep can push the hidden cost exposure factor up over time.
Does the score account for income variability?
Indirectly, via reserves. If your income is variable (commission, seasonal, self-employed), increase reserves until they cover 9–12 months of housing rather than 6 — that pushes the reserves factor lower and reflects the higher variance in your income.
Is a 60+ score ever fine?
Rarely. Sometimes early-career buyers with strong income trajectories and confirmed near-term increases consciously accept an elevated score, expecting the metrics to improve in 12–24 months. But that's a bet. Score it honestly, then decide if you're willing to take the bet.
Keep going
Related calculators.
Use it together
Score the price band, then score the specific home.
The Affordability calculator finds the right price tier. This standalone risk score grades a specific home you're considering against your real reserves and obligations.