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How Much Income Do I Need for a 550k Mortgage? You need to make **$169,193 a year** to afford a 550k mortgage.

The Income Needed To Qualify for A $500k Mortgage

A good rule of thumb is that the maximum cost of your house should be no more than 2.5 to 3 times your total annual income. This means that if you wanted to purchase a $500K home or qualify for a $500K mortgage, your minimum salary should fall **between $165K and $200K**.

A $200k mortgage with a 4.5% interest rate over 30 years and a $10k down-payment will require an **annual income of $54,729** to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator.

Assuming the best-case scenario — you have no debt, a good credit score, $90,000 to put down and you're able to secure a low 3.12% interest rate — your monthly payment for a $450,000 home would be $1,903. That means your annual salary would need to be **$70,000 before** taxes.

Monthly payments for a $450,000 mortgage

With a $450,000 mortgage and an APR of 3%, you'd pay **$3,107.62 per month for a 15-year loan** and $1,897.22 for a 30-year loan. Keep in mind, these amounts only include principal and interest. In many cases, your monthly payment will also include other expenses, too.

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.

In parts of the country with higher costs of living, $200,000 **is only enough to buy a home the size of a studio apartment** – or less. In other parts, $200,000 can get the buyer a home around 50 percent larger than the typical 1,800 square foot American home.

If you make $50,000 a year, your total yearly housing costs should ideally be no more than $14,000, or $1,167 a month. If you make $120,000 a year, you can go **up to $33,600 a year**, or $2,800 a month—as long as your other debts don't push you beyond the 36 percent mark.

What income is required for a 400k mortgage? To afford a $400,000 house, borrowers need $55,600 in cash to put 10 percent down. With a 30-year mortgage, your monthly income should **be at least $8200** and your monthly payments on existing debt should not exceed $981. (This is an estimated example.)

A good rule of thumb is that your total mortgage should be **no more than 28% of your pre-tax monthly income**. You can find this by multiplying your income by 28, then dividing that by 100.

A down payment: You should have a down payment equal to 20% of your home's value. This means that to afford a $300,000 house, you'd need **$60,000**. Closing costs: Typically, you'll pay around 3% to 5% of a home's value in closing costs. On a $300,000 home, you'd need $9,000 to $15,000.

For homes in the $800,000 range, which is in the medium-high range for most housing markets, DollarTimes's calculator recommends buyers bring in **$119,371 before tax**, assuming a 30-year loan with a 3.25% interest rate.

Following this rule, if you make $125,000 before taxes, you should be able to afford **up to $35,000 in housing expenses per year** — or about $2,916 per month.

I make $150,000 a year. How much house can I afford? You can afford **a $510,000 house**.

Example. If the home price is $500,000, a **20% down** payment is equal to $100,000, resulting in a total mortgage amount of $400,000 ($500,000 - $100,000). The average down payment in the US is about 6% of the home value.

For example, if you make $3,000 a month ($36,000 a year), you can afford a mortgage with a monthly payment **no higher than $1,080 ($3,000 x 0.36)**. Your total household expense should not exceed $1,290 a month ($3,000 x 0.43).

How Much Income Do I Need for a 500k Mortgage? You need to make **$153,812 a year** to afford a 500k mortgage. We base the income you need on a 500k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about $12,818.

Surprisingly, YES! **It'll be close**, but it's possible with adequate income and good credit. Even though the median home price around the Bay Area is about $1M and often require $200K in downpayment, there are still plenty of good single family homes in the South Bay, and especially San Jose, that are under $600K.

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.)

$150,000 USD annual income will allow you to live very nicely in many places of the USA. However, one always needs to be Frugal with their resources, and only buy or rent what you Need/Require. Additionally, $150K **annual income will be fine for a person with a spouse**.

Saving $20 a week works out to saving **$1,040 a year**. Let's assume you start saving when your career starts and you have a normal career of about 40 years. We'll also assume you get a 6% rate of return.

The usual rule of thumb is that you can afford a mortgage **two to 2.5 times your annual income**. That's a $120,000 to $150,000 mortgage at $60,000.

That's **$9,000** on a $300,000 home – the lowest possible unless you're eligible for a zero–down–payment VA or USDA loan. The minimum credit score requirement is 620 for a conforming loan. But (and you'll have spotted a theme here) individual lenders can impose higher minimums.

For a $1.5M. Home, the buyer(s) would need to have good credit, savings or assets of $300K, (after debts) and would need to be making **about $375K a year gross income**.