The lender determines a maximum purchase price at prequalification of a mortgage, based on income, debts, and assets (cash available for downpayment). The credit score is also an important factor for prequalification; however, for this calculation, it is assumed that the credit score is 700 or above. If the cash available for downpayment is a fixed amount (assuming no additional cash is available at the time of purchase), the maximum purchase price will be based on the downpayment (minimum 3.5% of purchase price for an FHA loan up to a maximum loan amount of $567,500). If additional downpayment funds are secured from various sources, the qualification for the maximum purchase price is based on the total payments-to-income ratio, using the proposed new total monthly house payment.