~28%
of Gross Income → Housing
Most buyers need a gross annual income of $50,000–$150,000+ to qualify for a mortgage, depending on the home price, interest rate, and existing debt. The key threshold: lenders typically require that your housing costs stay below 28% of gross monthly income.
Your required income depends on two things — the monthly mortgage payment you'd owe and your debt-to-income ratio. Higher home prices, higher rates, and more existing debt all push the income requirement up.
Check Your Affordability →The income ranges above are general estimates. For a figure based on your actual finances, use our Home Affordability Calculator. Enter your income, monthly debts, down payment, and target rate — it estimates the max home price you can qualify for.
Takes about 30 seconds. No signup required.
Open Home Affordability Calculator →The table below estimates the gross annual income required for each home price, assuming a 7% rate, 30-year fixed term, and 20% down payment. Income ranges account for variation in property taxes, insurance, and existing debt.
| Home Price | Loan Amount | Monthly P&I | Est. Income Needed |
|---|---|---|---|
| $150,000 | $120,000 | $798 | $38,000 – $48,000 |
| $200,000 | $160,000 | $1,064 | $50,000 – $65,000 |
| $250,000 | $200,000 | $1,331 | $62,000 – $80,000 |
| $300,000 | $240,000 | $1,597 | $74,000 – $96,000 |
| $400,000 | $320,000 | $2,129 | $96,000 – $126,000 |
| $500,000 | $400,000 | $2,661 | $114,000 – $150,000 |
| $600,000 | $480,000 | $3,194 | $137,000 – $180,000 |
| $750,000 | $600,000 | $3,992 | $171,000 – $222,000 |
| $1,000,000 | $800,000 | $5,322 | $228,000 – $296,000 |
How to read this: The lower bound assumes minimal existing debt and moderate property costs. The upper bound accounts for car payments, student loans, and higher-tax locations. Use the affordability calculator to narrow your range.
Most lenders use the 28/36 rule to decide how much you can borrow. It has two parts:
Housing costs should stay below 28% of gross monthly income
Total debt payments should stay below 36% of gross monthly income
Housing costs include principal, interest, property tax, and insurance (PITI). Total debt adds car payments, student loans, credit card minimums, and any other recurring obligations.
| Annual Income | Max Monthly Housing (28%) | Max Total Debt (36%) |
|---|---|---|
| $50,000 | $1,167 | $1,500 |
| $75,000 | $1,750 | $2,250 |
| $100,000 | $2,333 | $3,000 |
| $150,000 | $3,500 | $4,500 |
Some loan programs (FHA, VA) allow DTI ratios up to 43–50%, but staying within 28/36 gives you the most comfortable payment and strongest approval odds.
Once you know what you can qualify for, see what the monthly payment actually looks like. Each page below breaks down payments by rate, down payment, and loan term.
Browse all 37 price points from $100K to $1M on the Mortgage & Real Estate hub.
It depends on the home price, interest rate, and your existing debt. The standard guideline: your monthly mortgage payment should stay below 28% of gross monthly income. For a $300,000 home at 7% with 20% down, that translates to roughly $68,000–$75,000 per year in gross income.
Use the Home Affordability Calculator for a personalized estimate.
On $60,000/year, you can typically afford a home in the $150,000–$240,000 range. The exact number depends on your down payment, interest rate, and existing monthly debts. With minimal debt and 20% down at 7%, a home around $200,000 is a comfortable fit.
See the breakdown: $200K mortgage payment
Most lenders prefer a front-end DTI below 28% (housing costs only) and a back-end DTI below 36% (all debts combined). Some FHA and VA programs allow ratios up to 43–50%, but lower ratios mean better loan terms and more comfortable payments.
Check yours with the DTI Calculator.
Yes — significantly. A larger down payment reduces the loan amount, which lowers the monthly payment and the income required to qualify. On a $400,000 home, putting 20% down instead of 5% cuts the required income by roughly $15,000–$20,000 per year. It also eliminates PMI, saving another $150–$300/month.
With 20% down ($100,000) at 7% over 30 years, the monthly P&I payment is about $2,661. Adding taxes and insurance brings the total to roughly $3,300–$3,800/month. Using the 28% rule, you'd need a gross annual income of approximately $114,000–$150,000.
Full breakdown: $500K mortgage payment