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Example. Take a homebuyer who makes $40,000 a year. The maximum amount for monthly mortgage-related payments at 28% of gross income is **$933**. ($40,000 times 0.28 equals $11,200, and $11,200 divided by 12 months equals $933.33.)

While buyers may still need to pay down debt, save up cash and qualify for a mortgage, the bottom line is that buying a **home on a middle-class salary is still possible** — in some places. Below, check out 15 cities where you can become a homeowner while earning $40,000 a year or less.

**HUD**, nonprofit organizations, and private lenders can provide additional paths to homeownership for people who make less than $25,000 per year with down payment assistance, rent-to-own options, and proprietary loan options.

A $200k mortgage with a 4.5% interest rate over 30 years and a $10k down-payment will require an **annual income of $54,729** to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator.

A person who makes $50,000 a year might be able to afford a house worth anywhere **from $180,000 to nearly $300,000**. That's because 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.

Qualifying for a mortgage when you make $20,000 a year or $30,000 a **year is absolutely possible**. While your income plays a role in a mortgage lender's final decision, it isn't the only financial factor a lender looks at.

The usual rule of thumb is that you can afford a **mortgage two to 2.5 times your annual income**. That's a $120,000 to $150,000 mortgage at $60,000. ... Lenders want your principal, interest, taxes and insurance – referred to as PITI – to be 28 percent or less of your gross monthly income.

How Much Income Do I Need for a 250k Mortgage? You need to make **$76,906 a year** to afford a 250k mortgage. We base the income you need on a 250k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about $6,409.

I make $90,000 a year. How much house can I afford? You can afford **a $306,000 house**.

If you make $50,000 a year, your total yearly housing costs should ideally be no more than $14,000, or $1,167 a month. If you make $120,000 a year, you can go **up to $33,600 a year**, or $2,800 a month—as long as your other debts don't push you beyond the 36 percent mark.

It's possible to qualify with a score in the 500s, though you'd need to make a 10% down payment if your score falls below 580. **FHA loans** also have a higher DTI threshold than most other loans which can help a lot when you earn $35,000 a year. You can qualify with a DTI of 50% or even higher in some cases.

Surprisingly, YES! **It'll be close**, but it's possible with adequate income and good credit. Even though the median home price around the Bay Area is about $1M and often require $200K in downpayment, there are still plenty of good single family homes in the South Bay, and especially San Jose, that are under $600K.

For example, if you're bringing in $175,000 a year, have relatively low monthly debt payments of $1,000 a month and have saved up $100,000 for a down payment, you can afford to spend **$754,916.73** on a home.

How much house can I afford on $48,000 a year? It may be possible to afford a house **up to $260,000**. Financial experts recommend spending no more than 28% of your gross monthly income on your mortgage payment and no more than 36% of your gross monthly income on total debt.

How Much Income Do I Need for a 300k Mortgage? You need to make **$92,287 a year** to afford a 300k mortgage. We base the income you need on a 300k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about $7,691.

What you can afford: With a $50k annual salary, you're earning **$4,167 per month before tax**. So, according to the 28/36 rule, you should spend no more than $1,167 on your mortgage payment per month, which is 28% of your monthly pre-tax income.

You should be spending no more than 30% of your gross income on a monthly mortgage payment, have at least 30% of the home's value saved up in cash or semi-liquid assets, and **buy a home valued at no more than three times your annual household gross income**. Visit Business Insider's homepage for more stories.

The 2021 housing market is improving

Because **fall 2021** is looking like it'll be a better time for buyers. If the experts are right, more homes will come onto the market in October. And prices could moderate after record–breaking increases. ... Get busy in October as homes for sale become more numerous and affordable.

The “30/30 Rule is **the Delayed Dismissal Weather procedures that the nationally recognized**. It is required that the “30/30 Rule” be enacted by the school if thunder is heard within 30 seconds of a lightning strike.

If you're single and make $35,000 a year, then you can probably **afford only about a $105,000 home**. But you almost certainly can't buy a home that cheap. Single people have a tough time buying homes unless they make an above-average salary.

If you make $36,000 per year, you'll likely be **able to afford a home that costs between $144,000 and $195,000**. The exact amount you'll be able to afford will depend on your debts, credit score, location, down payment, and other variables.

If you make $3,000 a month ($36,000 a year), your DTI with an **FHA** loan should be no more than $1,290 ($3,000 x 0.43) — which means you can afford a house with a monthly payment that is no more than $900 ($3,000 x 0.31). FHA loans typically allow for a lower down payment and credit score if certain requirements are met.

A good rule of thumb is that the maximum cost of your house should be **no more than 2.5 to 3 times your total annual income**. This means that if you wanted to purchase a $500K home or qualify for a $500K mortgage, your minimum salary should fall between $165K and $200K.

For homes in the $800,000 range, which is in the medium-high range for most housing markets, DollarTimes's calculator recommends buyers bring in **$119,371 before tax**, assuming a 30-year loan with a 3.25% interest rate.