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.
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.
Monthly payments on a $350,000 mortgage by interest rate
At a 7.00% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $2,329 a month, while a 15-year might cost $3,146 a month.
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.
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.
If your budget is under $400,000
For this budget, you could build a large three-bedroom home, which typically costs $300,000 to $600,000, for up to 3,000 square feet. You'll sacrifice a few amenities for square footage, but you can always add them in later when you have additional budget.
The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development. We provide mortgage insurance on loans made by FHA-approved lenders.
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.
An annual income of about $90,000 could allow you to afford a $300,000 mortgage, assuming you don't have other significant debt, such as student loans. But how much house you can afford will depend on multiple factors, including credit history and how much you have saved for a down payment, to name a couple.
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.
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.
What Credit Score Do You Need for a No Down Payment Home Loan? If you're hoping to purchase a home without a down payment, you'll have to prove a specific income and have a credit score that's at least in the mid-600 range.
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.
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.
With VA and USDA loans, qualified borrowers can get a construction loan with 0% down. For FHA loans, the down payment could be as low as 3.5% down. Some lenders will issue traditional construction loans with 10% down.
If your house-to-be appraises for exactly the cost to build, you'll be able to get a loan for 80% of the cost… and you'll need the other 20% in cash.
FHA Loan Down Payment
They require a minimum down payment of just 3.5%, which is $10,500 for a $300,000 home. Please also note that mortgage insurance premiums are a requirement for all FHA loans. Similar to Private Mortgage Insurance, FHA Mortgage Insurance is in place to protect lenders if a default occurs.
To afford a $400,000 house, you typically need an annual income between $100,000 to $125,000, which translates to a gross monthly income of approximately $8,333 to $10,417. However, this is a general range, and your specific circumstances will determine the exact income required.
First-time home buyers have long considered a down payment of 20% on a mortgage the standard amount. But this initial payment can sometimes be set as low as 5% for a conventional loan—and buyers always have the option of paying more than 20% of the purchase price.
Today's rates seem high compared with the recent 2% rates of the pandemic era. But experts say getting below 3% on a 30-year fixed mortgage is unlikely without a severe economic downturn.
Reduce your loan term
Making the equivalent of two extra mortgage payments per year, for example, will knock off 9 years and 4 months from the total term of your loan. A shorter mortgage term also means that you'll own your house outright sooner.