$100000 is a good 20% down payment on a $500000 home or a 25% down payment on investment property - which could be a single family dwelling, a duplex, triplex or four-plex.
To recap: For a $100,000 mortgage, you need to make a minimum of $29,138 per year. To get this number, we calculated the percentage of income based on the 28/36 rule of thumb, which states that mortgage payments should be 28% or less of your gross income and no more than 36% of your total monthly debts.
A good number to shoot for when saving for a house is 25% of the sale price to cover your down payment, closing costs and moving expenses. (This amount is separate from saving up 3–6 months of your typical living expenses in a fully-funded emergency fund—which I recommend you do first, before saving up for a home.)
On a salary of $100,000 per year, as long as you have minimal debt, you can afford a house priced at around $311,000 with a monthly payment of $2,333. This number assumes a 6.5% interest rate and a down payment of around $30,000.
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.
It is possible to get a $100,000 personal loan, but it's challenging. Lenders don't typically offer loans as large as $100,000, with most banks and credit unions offering a maximum of $50,000. To qualify for a $100,000 personal loan, you'll need a credit score of 720 or above and a high income.
A good credit score to buy a home is one that helps you secure the best mortgage rate and loan conditions for the mortgage you're applying for. You'll typically need a credit score of 620 to finance a home purchase.
The answer is yes. There's a city in every state where that much money allows for comfortable living. GOBankingRates analyzed data from several sources, including AreaVibes, Sperling's Best Places and the U.S. Bureau of Labor Statistics, to compile the best places to live on a $100,000 salary in each state.
The bottom line
The recent interest rate cuts have made home equity loans more attractive, with a $100,000 loan potentially costing between about $979 and $1,239 per month, depending on the repayment term and the current interest rate.
Current mortgage interest rates in California. As of Monday, January 13, 2025, current interest rates in California are 7.33% for a 30-year fixed mortgage and 6.61% for a 15-year fixed mortgage.
Annual compound interest earnings:
At 5.00%, your $100,000 would earn $5,000 per year.
What to expect from your first mortgage payment. First payments can be higher than your ongoing monthly payment. This is because it'll include interest from the date we released the funds, up to the end of that month, plus your payment for the following month.
Your deposit should be at least 5% or 10% of the price of the home you'd like to buy.
If you want to have a minimalist lifestyle, 36k/year is more then enough. If you want a home, family, car, insurance and some "toys", it's not going to be enough, at least in a majority of places in the U.S. But again, the term "decent" is pretty objective. Can you be content? Depends on your expectations.
On a $40,000 salary, you could potentially afford a house worth between $100,000 to $140,000, depending on your specific financial situation and local market conditions. While this may limit your options in many urban areas, there are still markets where homeownership is achievable at this income level.
If you make $100,000 per year, your hourly salary would be $48.08.
If you're raising a family of four in 2024, you'll need a six-figure income in 26 U.S. states. That's more than half of America where you'll need to earn $100,000 or more annually to budget for and comfortably raise a family.
The good news for anyone looking to build a house for $100K or less is that there a plethora of designs to choose from. The type of small home combined with cost-cutting preparations make this a viable option.