# How much is a 3.5 down payment on a 500k house?

Asked by: Stephon O'Connell  |  Last update: February 23, 2024

3.5% Down Payment Option (FHA Loan) If you qualify for an FHA loan, you might be able to put down as little as 3.5% on a \$500,000 home. This would be \$17,500. FHA loans come with mortgage insurance premiums (MIP) that last for the life of the loan in most cases.

## How much is a 3.5 down payment on a 500 000 house?

DOWN PAYMENT AND CLOSING COSTS

FHA loans require a down payment of 3.5%. For a \$500,000 home, this amounts to \$17,500. Closing costs should also be taken into consideration. These include various fees and taxes and generally fall between 2% and 2.25% of the listing price.

## What is 3 down on a 500K house?

Introduction to down payments

It's usually expressed as a percentage of the purchase price. So, if your mortgage requires that you put down, say, 3%, the down payment needed for a \$500K house would be \$500,000 x 3% = \$15,000. And a 20% down payment would require \$100,000 (\$500,000 x 20% = \$100,000).

## How much should I make to afford a 500K house?

In today's climate, the income required to purchase a \$500,000 home varies greatly based on personal finances, down payment amount, and interest rate. However, assuming a market rate of 7% and a 10% down payment, your household income would need to be about \$128,000 to afford a \$500,000 home.

## What is the monthly payment on a 500K mortgage?

Estimated Monthly Payments on a \$500K Mortgage

As noted above, your estimated monthly payment for a \$500K mortgage will be \$3,360.16, assuming a 30-year loan term and an interest rate of 7.1%. But this payment could range between \$2,600 and \$4,900 depending on your term and interest rate.

## Monthly Payment On a \$500,000 House | Calculate the Exact Payment

15 related questions found

### Can I afford a 500K house on 100k salary?

That monthly payment comes to \$36,000 annually. Applying the 28/36 rule, which states that you shouldn't spend more than around a third of your income on housing, multiply \$36,000 by three and you get \$108,000. So to afford a \$500K house you'd have to make at least \$108,000 per year.

### What income is needed for a 400k mortgage?

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.

### How much house can you afford on a \$70,000 salary?

If I Make \$70,000 A Year What Mortgage Can I Afford? You can afford a home price up to \$285,000 with a mortgage of \$279,838. This assumes a 3.5% down FHA loan at 7%, a base loan amount of \$275,025 plus the FHA upfront mortgage insurance premium of 1.75%, low debts, good credit, and a total debt-to-income ratio of 50%.

### How much house can I afford with 60k salary?

That's because your budget is influenced by a variety of factors, like your mortgage rate, down payment, loan length, and so on. Here's how to figure out how much you can spend. An individual earning \$60,000 a year may buy a home worth ranging from \$180,000 to over \$300,000.

### How much home can I afford with 80k salary?

How much house can you afford? Following the 28/36 rule, with your \$80,000 income, you want your monthly housing payments to stay below \$1,866. If we assume a 30-year loan at 6.5 percent interest, with a traditional 20 percent down payment, that means you can likely afford a home of about \$310,000.

### How much is 3.5 down payment on a house?

Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a \$250,000 home, a down payment of 3.5% is \$8,750, while 20% is \$50,000.

### Is it OK to put 3 down on a house?

Home buyers no longer need a 20% down payment to buy a home. You can buy a home with a conventional loan for 3% down. And you may even be able to buy a home with no money down if you qualify for a VA or a USDA loan.

### Is 3% enough to put down on a house?

You don't need to put 20 percent down to get a mortgage — some mortgages don't even require a down payment. You can get a conventional mortgage with 3 percent down, but with anything less than 20 percent, you'll have to pay mortgage insurance. Making a larger down payment can get you a lower interest rate.

### How much house can I afford with \$1400 a month?

\$1,400 per month qualifies to borrow a loan amount of \$204,913; add your \$20,000 down payment to this, and you can purchase a home of \$224,913. Of course, you'll still need cash for reserves and to cover the loan's closing costs.

### Is 3.5% enough for a down payment?

Key takeaways. FHA loans require a minimum down payment of 3.5% for borrowers with a credit score of 580 or more. Borrowers with a credit score of 500 to 579 need to put 10% down to get an FHA loan. Conventional conforming mortgages only require 3% down, and VA and USDA loans require no down payment.

### How much house can I afford if I make \$36,000 a year?

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.

### Can I afford a 250k house on 50K salary?

You can generally afford a home for between \$180,000 and \$250,000 (perhaps nearly \$300,000) on a \$50K salary. But your specific home buying budget will depend on your credit score, debt-to-income ratio, and down payment size.

### How much is \$30 an hour annually?

\$30 an hour is how much a year? If you make \$30 an hour, your yearly salary would be \$62,400.

### Can I afford a 400k house with 70K salary?

The 28/36 rule

This guideline states that you should spend no more than 28 percent of your income on housing costs, and no more than 36 percent on your total debt payments, including housing costs. (So that would also include credit card bills, car payments and any other debt you may carry.)

### What will be approved for a mortgage if I make \$65000 a year?

If I Make \$65,000 A Year What Mortgage Can I Afford? You can afford a home up to \$265,000 with a mortgage of \$260,200. This assumes a 3.5% down FHA loan at 7%, a base loan amount of \$255,725 plus the FHA upfront mortgage insurance premium of 1.75%, low debts, good credit, and a total debt-to-income ratio of 50%.

### Is 70K a year good for a single person?

If you are a single person in Los Angeles making around \$70,000 a year, you are still considered low-income, according to a new statewide study. The California Department of Housing and Community Development released the report in June and found that income limits have increased in most counties across California.

### Can a single person afford a 400k house?

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. in order to comfortably afford this 400,000 dollar home.

### What is the 20% down payment on a \$400 000 house?

Putting down 20% of the home's purchase price is a traditional and ideal down payment option. For a \$400,000 home, a 20% down payment would be \$80,000. This option may help you avoid private mortgage insurance (PMI) and can lead to more favorable loan terms.

### How much income do you need to buy a 600k house?

The principal, interest and property mortgage insurance on \$600,000 house with a 15% down payment and a 30-year, fixed-rate mortgage with 7% rate would cost \$3,662. To afford this, you would need a monthly income of about \$13,079 or an annual income of about \$157,000.