Affording a $350k home typically requires an annual income between $87,000 and $110,000, but your individual circumstances play a significant role. Understanding your mortgage payments, including principal, interest, taxes, and insurance, is essential for long-term financial planning.
Typical requirements for a conventional loan include not just a minimum 3% down payment, as mentioned earlier, but also a credit score of at least 620, a maximum debt-to-income ratio (DTI) of 50%, and an income that can support both your monthly mortgage payment and other life expenses and bills.
The rule of thumb I read a LONG time ago (and as far as I'm aware, this hasn't changed even though the housing market has exploded) is that you can afford a mortgage that is 4-6 times your gross income as a MAXIMUM. So on your 60K salary, you can take on a mortgage of $240-360K.
The house you can afford on a $70,000 income will likely be between $290,000 to $360,000. However, your home-buying budget depends on quite a few financial factors — not just your salary.
Assuming a down payment of 20%, an interest rate of 6.5% and additional monthly debt of $500/month, you'll need to earn approximately $80,000 to afford a $300,000 house.
You can buy a $300,000 house with only $9,000 down when using a conventional mortgage, which is the lowest down payment permitted, unless you qualify for a zero-down-payment VA or USDA loan. Different lenders have different rules, but typically they require a 620 credit score for conventional loan approval.
According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment. Homeowners Insurance. Private mortgage insurance.
Your payment should not be more than 28%. of your total gross monthly income. That means you'll need to make 11,500 dollars a month, or 138 k per year.
If you're eyeing a $350,000 house, you should anticipate putting down up to 20% or $70,000. However, there are other expenses and factors to determine just how much cash you'll need to put down to secure your dream home. At Texas United Mortgage, we've helped thousands of customers secure home loans.
What is the highest credit score possible? To start off: No, it's not possible to have a 900 credit score in the United States. In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850.
These figures do not include property taxes and homeowners insurance, which can vary significantly depending on the location. Here's what you can expect to pay monthly on a $350,000 loan at today's rates: 30-year mortgage at 6.43%: $1,756.92 per month. 15-year mortgage at 5.83%: $2,337.16 per month.
On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.
In a heartland or southern city, earning $350,000 a year is considered rich. After $23,000 in 401(k) retirement contributions, you're left with $327,000 in gross income, or roughly $228,900 in after tax income using a 30% effective tax rate. In 2025, the maximum 401(k) employee contribution is $23,500 per person.
Given all of these factors, most experts recommend having a minimum of 6-9 months' worth of living expenses after closing. Some advise having up to 20% of the home's value leftover in cash reserves, though this is not practical for every home buyer. Ultimately how much you need depends on your own financial situation.
Is 50% of take-home pay too much for a mortgage? Paying 50% of your take-home pay on a mortgage is often seen as too high. In general, keeping your housing costs, including your mortgage, below 28% of your gross income is recommended.
The Bottom Line. On a $70,000 salary using a 50% DTI, you could potentially afford a house worth between $200,000 to $250,000, depending on your specific financial situation.
Timing Requirements – The “3/7/3 Rule”
The initial Truth in Lending Statement must be delivered to the consumer within 3 business days of the receipt of the loan application by the lender. The TILA statement is presumed to be delivered to the consumer 3 business days after it is mailed.
Following the 28/36 rule, a guideline many mortgage lenders use to gauge how much you can afford, you'd likely need to earn at least $90,000 per year to afford a $350,000 house without spreading yourself too thin. Keep in mind that figure does not include upfront payments, like your down payment and closing costs.
In summary, here's what we found: You need to make at least $54,000 per year to afford a $200,000 house. You need to make at least $81,000 per year to afford a $300,000 house. You need to make at least $109,000 per year to afford a $400,000 house.
For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.
To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage.
How Much is a Monthly Payment on a $300,000 Mortgage? Your monthly payment for a $300,000 mortgage and a 30-year loan term could range from $1,798 to $2,201, depending on your interest rate and other factors. Learn more about the upfront and long-term costs of a home loan.
With a $65,000 annual salary, you could potentially afford a house priced between $195,000 to $260,000, depending on your financial situation, credit score, and current market conditions. However, this is a broad range, and your specific circumstances will determine where you fall within it.