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.
Down payment amounts for a $350,000 house can range from 0% to 20% or more. The required down payment depends on the type of mortgage you choose. Conventional loans typically require 3-20% down for a $350,000 house. Government-backed loans like FHA, VA, and USDA have different down payment requirements.
Requirements to Get a $35,000 Personal Loan
Lenders consider personal loan applicants with higher credit scores more likely to repay what they borrow. Personal loan applicants with a credit score of 640 or higher are more likely to be offered favorable terms.
The bottom line. If you were to purchase a home at today's average rates with a $350,000 mortgage loan, you can expect the monthly payments (principal and interest only) to range from $1,756.92 to $2,337.16 (depending on the loan term you choose).
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.
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 FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
Some of the easiest loans to get approved for if you have bad credit include payday loans, no-credit-check loans, and pawnshop loans. Before you apply for an emergency loan to obtain funds quickly, make sure you read the fine print so you know exactly what your costs will be.
If you want to avoid mortgage insurance by putting 20% down, your down payment should be $100,000. If you plan to put 8% down (the median for first-time homebuyers) it would be $40,000. If you're a first-time homebuyer with an FHA loan and a 3% down requirement, you would need $15,000.
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.
The median downpayment on a home is 13%, but if a buyer wants to avoid fees, including private mortgage insurance, they may have to put at least 20% down. If a buyer puts 20% down and takes out a $350K mortgage, they're likely putting down around $87,500.
An individual earning $60,000 a year may buy a home worth ranging from $180,000 to over $300,000. That's because your wage isn't the only factor that affects your house purchase budget. Your credit score, existing debts, mortgage rates, and a variety of other considerations must all be taken into account.
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.
A 620 credit score is typically what you'll need to get a mortgage for a home purchase. Although you can buy a house with a credit score as low as 500, you'll pay a higher rate and make a larger down payment.
Generally, it takes around 4-12 months to reach the point where you can apply for a loan. It will take a few months to get to 750 if your score is currently somewhere between 650 and 700.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024.
On a $350,000, 30-year mortgage with a 6% annual percentage rate (APR), you can expect a monthly payment of $2,098.43, not including taxes and interest (these vary by location and property, so they can't be calculated without more detail).
Assuming annual compounding, the interest owed at the end of each year is: interest owed = principal * interest rate = 35,000 * 9% = 3150.
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.
Making an additional payment each quarter results in four extra payments per year. On a $220,000, 30-year mortgage with a 4% interest rate, you would cut 11 years off your mortgage and save $65,000 in interest.
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.