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Buying a home on one person's income can be more difficult than with two incomes, but **it's not impossible**. A single income can make it tougher to save enough money for a down payment and qualify for a large enough mortgage.

**There's no true “minimum” income to buy a house**. However, lenders want to know you can afford the mortgage. That means you need to prove you have enough income to cover your future monthly payments. One way lenders determine affordability is by looking at your debt-to-income ratio (DTI).

The fact that you'd been working full-time for only one year **probably won't hurt your mortgage approval chances**. In fact, if you're working in the same field you studied, your education itself might count as a two-year job history.

Be ready. **Buying a home on a single income is doable**. In fact, well over one in three buyers go it alone on a mortgage.

**Qualifying for a mortgage when you make $20,000 a year or $30,000 a year is absolutely possible**. While your income plays a role in a mortgage lender's final decision, it isn't the only financial factor a lender looks at.

You'll also need closing costs and other fees, which typically run between 2 and 5% of the purchase price. **Assuming $10,000 in closing costs, you need $25,000 minimum to position yourself for home ownership.**

While it's hugely situational, **it is definitely possible to purchase a home if you're making $30,000 a year**. As long as you have enough savings to make a down payment, have a good credit score, and have a decent debt-to-income ratio, you should be good to go!

Buying a rental property with only a $20,000 down payment may sound impossible, but **it can be very doable**. On Roofstock there are single-family and small multifamily investment properties available that require an initial investment (i.e., down payment + closing costs + immediate repair costs) of $20,000 or less.

While buyers may still need to pay down debt, save up cash and qualify for a mortgage, the bottom line is that **buying a home on a middle-class salary is still possible — in some places**. Below, check out 15 cities where you can become a homeowner while earning $40,000 a year or less.

What income is required for a 200k mortgage? To be approved for a $200,000 mortgage with a minimum down payment of 3.5 percent, you will need an approximate income of **$62,000 annually**. (This is an estimated example.)

Perhaps the most important factors that qualify an applicant for a loan are employment and income. **Lenders value employment so much that you can qualify for a loan if you just started a new job** or even if you only have an offer letter and haven't started yet.

**The majority of lenders will require you to have been with your employer for at least three months or have several years of employment history**. That being said, there are mortgage lenders that will consider newly employed applicants.

**If you don't have a job, it may take some time to find a mortgage lender willing to work with you**. In the meantime you can pay down debt and improve your credit score. That way, lenders will see a history of you being able to repay your debts and make payments on time.

Your lender will want to see **at least two years** of steady income before they'll authorize a mortgage. That means no gaps in employment during that time. It's ok if you've changed jobs, but only if you stay in the same field.

How much do I need to make for a $250,000 house? A $250,000 home, with a 5% interest rate for 30 years and $12,500 (5%) down requires an **annual income of $65,310**.

**No more than 30% to 32% of your gross annual income** should go to mortgage expenses, such as principal, interest, property taxes, heating costs and condo fees. Total Debt Service (TDS) Ratio. TDS looks at the gross annual income needed for all debt payments like your house, credit cards, personal loans and car loan.

Based on a standard work week of 40 hours, a full-time employee works 2,080 hours per year (40 hours a week x 52 weeks a year). So if an employee earns $40,000 annually working 40 hours a week, they make about **$19.23 an hour** (40,000 divided by 2,080).

Example. Take a homebuyer who makes $40,000 a year. The maximum amount for monthly mortgage-related payments at **28% of gross income** is $933. ($40,000 times 0.28 equals $11,200, and $11,200 divided by 12 months equals $933.33.)

If you're getting a mortgage, a smart way to buy a house is to save up **at least 25% of its sale price** in cash to cover a down payment, closing costs and moving fees. So if you buy a home for $250,000, you might pay more than $60,000 to cover all of the different buying expenses.

– Data from the Federal Reserve shows that the average American saves only **6% of his or her disposable income**. Assuming he or she earns the median household income, 6% would be roughly $300 per month, enough to buy a $100,000 home by 35 if he or she started saving at 28.

The general rule of thumb is that you should save 20% of your salary for retirement, emergencies, and long-term goals. By age 21, assuming you have worked full time earning the median salary for the equivalent of a year, you should have saved **a little more than $6,000**.

So, if you're buying a home for $300,000 you'll need **at least $60,000 to cover a 20% deposit**.

For starters, **you will need to have $10,000**, which you will use for your down payment and to cover the cost of your home inspection, the appraisal and a year's worth of homeowner's insurance. All of those other closing costs, escrows and everything else will get paid, but not by you.

One of the most common questions we get asked is if you can buy a house with less than a 20% deposit The answer is **yes you can but you will have to pay Lenders Mortgage Insurance and may need to meet some further credit requirements such as genuine savings**.