If you are just starting your search, use these "multiples of income" to estimate a safe home price range : Annual Gross Income Conservative (3x) Moderate (4x) Aggressive (5x) $100,000 $150,000
To determine the income you need for a house, lenders primarily look at two numbers: your (before taxes) and your Debt-to-Income (DTI) ratio . 🏠 The Gold Standard: The 28/36 Rule income to buy a house
Most financial experts and lenders use this framework to decide how much you can borrow : If you are just starting your search, use
: Your total monthly housing costs (principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income . Use the higher end (5x) only if you
💡 : Use the lower end (3x) if you have high existing debt or a small down payment. Use the higher end (5x) only if you are debt-free and have a 20% down payment . 🛠️ How to Calculate Your Personal Limit
: Your total monthly debt payments—including your new mortgage plus car loans, student loans, and credit card minimums—should stay below 36% of your gross income . Quick Income Benchmarks
To find your specific maximum monthly mortgage payment, follow this steps: How much house can I afford guide - Opendoor
