An annual income of about $76,000 should put you in the position to afford a $250,000 mortgage, assuming you have relatively little other debt. But exactly what amount you'll need to earn will depend on your interest rate, loan term, and debt level, among other factors.
If your lender requires you to make a minimum down payment of 10%, then you will need to make a $25,000 down payment to buy a $250,000 house and a $50,000 down payment to buy a $500,000 house.
A 700 credit score is considered “very good” and opens doors to the best mortgage options available. Conventional loans offer highly competitive rates and terms at this credit level. Government-backed loans like FHA are available but may be less advantageous compared to conventional options.
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.
For a $200,000 home, you'll likely need a fair to good credit score: 740+: Best rates and terms. 680-739: Good rates, still very good affordability.
Monthly Payments for a $250,000 Mortgage
Assuming a 30-year fixed term and an interest rate of 7%, a $250,000 mortgage monthly payment would amount to $1,663 for the loan principal and interest. Choosing a 15-year loan term with a 7% interest rate would translate to a monthly mortgage payment of $2,247.
You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with a score as low as 500.
Credit card pre-approval doesn't typically impact your credit scores because the process usually involves a soft inquiry. Applying for a credit card that you're pre-approved for requires a hard credit inquiry, which could cause credit scores to drop temporarily.
The average cost of a £250k mortgage right now is £1,320 per month which means you would pay back around £395,878 across the whole term. This is based on average interest rates at the time of writing (January 2025) being 4% and typical term lengths being 25 years.
The FHA approves loan amounts based on factors like your credit score, living expenses, assets, debt-to-income ratio, household income, and the value of the property. As of 2025, the FHA maximum loan limit for a one-unit property is $524,225 in low-cost areas and $1,209,750 in high-cost areas.
As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.
The general rule is that you can afford a mortgage that is 2x to 2.5x your gross income. Total monthly mortgage payments are typically made up of four components: principal, interest, taxes, and insurance (collectively known as PITI).
A person who makes $50,000 a year might be able to afford a house worth anywhere from $180,000 to nearly $258,000. That's because your annual salary isn't the only variable that determines your home buying budget. You also have to consider your credit score, current debts, mortgage rates, and many other factors.
To afford a $250,000 house, you typically need an annual income between $62,000 to $80,000, depending on your financial situation, down payment, credit score, and current market conditions. However, this is a general range, and your specific circumstances will determine the exact income required.
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.
You'll usually need a credit score of at least 640 for the zero-down USDA loan program. VA loans with no money down usually require a minimum credit score of 580 to 620. Low-down-payment mortgages, including conforming loans and FHA loans, also require FICO scores of 580 to 620.
If a borrower has no other debt obligations, a conforming loan for a $250,000 property with 10% down in a 7% rate environment would require a gross monthly income of approximately $3,870, factoring in a 50% debt ratio. This translates to an annual salary of around $46,450.
Deposit requirements: You'll need to save a minimum deposit of 5% to 10% for a £250,000 mortgage. How much this figure will be depends on the value of the property, but a 10% deposit on a £250,000 house would be £25,000.
670–740: Good credit – Borrowers are typically approved and offered good interest rates. 620–670: Acceptable credit – Borrowers are typically approved at higher interest rates.
What income is required for a 200k mortgage? To be approved for a $200,000 mortgage with a minimum down payment of 3.5 percent, you will need an approximate income of $62,000 annually.
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.