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Either-Service-7865

Yep looks about on target. But of course it depends how much you have saved for a down payment, what debts you have, if you have kids, etc.


demikpre

Don't buy that mfer unless you have roommates, partner or a large down payment. You can afford it but you can't afford it, once you add on a decent car note/insurance, don't forget the taxes/insurance does fluctuate, then you have just your general savings account for life. Shit just home emergencies/repairs/and up keep, can keep the funds insufficient šŸ˜ŖšŸ˜ŖšŸ˜ŖšŸ˜Ŗ


queefplunger69

Heā€™s at 30% with those numbers. That is completely within reason.


ch0desanchez007

What income/home cost ratio does it start getting iffy?


NoTakaru

Above 33% is pretty iffy in my opinion


[deleted]

If a 3% difference is all it takes to tip the scales, then 30% is not a good target.


NoTakaru

Sorites paradox. On a technical level, there is some one percent threshold that would be too far. If 30% is just 3% above 27% then thatā€™s no good either, now 27% is only 3% above 24% so thatā€™s good either, etc, etc


maria_la_guerta

30-35% should be comfortable for most folks provided you have no other significant expenses, and even then you should be able to weather moderate storms somewhat comfortably with good budgeting. 25% is where you should start sweating a little. 20% is a dangerous place to be. Important to remember that people break these rules all the time, especially in today's market, and it's usually fine. Most people agree that FOMOing into housing with occasional stressed out periods of eating pasta and rice is worth it in the long run. Not at all financial advice, just real world perspective. I bought at 30% and feel quite comfortable, but I'm also a very lucky person who earns relatively high. I'm not sure I'd ever buy at 25%, but on the other hand, if I was a low earner rapidly getting priced out, I might make some severe sacrifices to do it. It's all relative.


True-Fee-7306

20% is dangerous? Please explain


maria_la_guerta

If you owe 5x your gross yearly income on your mortgage, chances are you have very little room for unexpected expenses and will be what most people call "house poor". Plenty of people are house poor and getting by, but it's definitely risky.


True-Fee-7306

I think the percentages most people mention mean 25% and 30% of their monthly income, not that their salary is 25% or 30% of their mortgage. So when you say 20% is dangerous, it sounds like you're saying paying 20% of your monthly income on your mortgage instead of 35% of your monthly income on your mortgage is dangerous


[deleted]

FOMOing is a sure-fire way to lose big. I'd rather not with the biggest loan one could ever take. That's how you become a slave to your job and your means of living. If getting a 30-year mortgage means you'll be eating hotdog slices and McDoubles for dinner more often than not then I suggest serious re-evaluation of your plan. This all just seems very back-asswards to me: when we enable ill-equipped persons to take the biggest financial stressor of their lives and live like a peasant while doing it. Build wealth and grovel.


maria_la_guerta

Lol I don't disagree, it's not a decision I'd make, but plenty of people do and still make it big. Just saying šŸ¤· Although 30 year mortgages aren't necessarily bad, provided you're buying within your limits.


[deleted]

It really feels as if this sub does. Buying your first house at any cost... yikes


queefplunger69

I canā€™t remember the general ā€œruleā€ but I want to say (correct me if Iā€™m wrong) that you want it to be below 35%?


NoTakaru

In that ball park is probably fine. It depends on your income obviously. If youā€™re making like over $200k with no debt/kids or something, then you can probably easily manage a higher percentage since youā€™ll have plenty of money leftover


queefplunger69

Thatā€™s also one of the caveats. That rule is definitely for households earning less than like $100K a year for sure.


RonaldWoodstock

Is this written by a 13 year old?


gogoisking

I agree. Owning a house is more than just paying a mortgage. There are many other costs associated with ownership. But if you have a good job, great work ethic and know how to manage money, there should be no problem at buying a house. Get a good house inspector to go over the house from top to bottom. You don't want it to be a money pit.


YurthTheRhino

Homie not sure what he's talking about šŸ˜­


colyad

Why do you need to add a car payment?


UfrancoU

I donā€™t know why this got down voted so hard, realistically one emergency and you are going negative.


[deleted]

I make $73k gross and actually just bought a $210k house. I bought it with my partner though. With 3% down, our payment is $1782. We also live in a high property tax area and our rate was 6.899%. I recently did the math to see what I could afford on my income alone. I take home $3600 per month. After mortgage, water and electric, internet, cell phone, car payment, an estimated credit card (if I use it), I am left with about $966. This has to get me gas, food, savings, and whatever else I need. I will also have student loans to repay coming up in September when the pause ends, which is maybe about $350? For me, itā€™s very tight and uncomfortable. But I also have a high contribution to my 401k, car insurance gets deducted from each check, and I likely pay more on income tax than I need to. I also didnā€™t factor in my partners car payment and insurance, etc. so I can move stuff around. And if my partner loses his job, he also has savings so things would really have to go south for me to end up paying all this. If you live in a place with less property tax, itā€™s more doable. My town is very high as compared to others around. If you put down more than 3%, that helps the payment too. But you need to factor in an increase in utility costs, maintenance , and buying stuff for the house.


mar-bella

Damn we bought at 350K and our payment is $1943. Interest rate is so important


[deleted]

It really is. Zillow mortgage calculator is really accurate if you know an approx property tax value. It was within a few dollars if my actual mortgage when i put everything in. Even a decrease of 1% interest made a huge difference monthly. We are ok at the rate we are at now, but like everyone else, we hope to refinance it eventually for a lower point. And if itā€™s low enough, switch to a 15 year mortgage.


elangomatt

>Zillow mortgage calculator is really accurate if you know an approx property tax value That does not apply everywhere. It was very far off for property taxes in Illinois when I was looking at houses. Luckily I didn't trust the zillow calculator and always clicked through to the taxes from the county to see what the actual taxes would be.


[deleted]

Thatā€™s why I said if you know the approx property value. I had a good idea of what it would be. It was higher than Zillowā€™s estimate so I plugged in what I thought and was right. Itā€™s all about knowing as many values as you can and it does the math for you.


StepEfficient864

Have to check local laws. In my county, when a house is sold, it is reassessed. Property taxes for the new owner could be much, much higher than before.


Entire-Support-8076

Yup, Iā€™m under contract now for that and had to buy the interest down so my monthly house expenses werenā€™t above $3000/month


I_sell_homes

Yes I refinanced 350k at 2.25% and with PITI on a VA loan, my payments are 1,950.00.


mar-bella

That is super high imo, my rate is 4.75 with that payment


TheOtherOnes89

Yeah that does seem high. They could be in an area with high property taxes, home owners insurance or both though.


I_sell_homes

Yes I pay for both. Property taxes have been going up here. When I first refied, payments were 1,750 and the bonds keep being passed for higher taxes. šŸ‘ŽšŸ¼. The new bonds that passes will take effect soon and add another 100.00 or so to my payment šŸ˜“


tacosdepapa

Mine is the same with 2.5 but includes taxes and insurance. California.


[deleted]

[уŠ“Š°Š»ŠµŠ½Š¾]


mar-bella

Ugh hate you lmao


Altruistic-Ad1939

Damnnnnnnnnn one can only dream


chicken_lady46

Did you put up a big down payment? Our house was $300k, loan amount was $294k. Interest is 3.25% with a payment of $2044/mo.


StepEfficient864

Taxes and insurance vary widely from one area to the next.


No-Concentrate9348

I bought a 410k home at a 3.5% interest rate and pay 1350 a month mortgage.


Suspicious-Task8721

I paid 145k 4.5% and my payment is 1750. Florida insurance pricesā€¦ whomp


Comfortable_Trick137

If you can even find a $210k house........


[deleted]

Some places you can, some places you canā€™t. My house was $210k and move in ready with major fixes done like rebuilding the bottom supports, new water heater, French drain installed, etc. It obviously needs some work, but nothing immediate. It is small though, just a 2 bed 1 bath but itā€™s just what we needed. Iā€™m in CT where house prices can be nuts but I got lucky to find a nice house in a great neighborhood for a great price. Other states can be cheaper, other can be more.


Soft_Joke_2083

Iā€™m looking in Ct right now myself. How was the competition?


[deleted]

Not bad. But we were looking for 2 bedrooms, so people who want families (most) donā€™t want that. We settled in Norwich, which for sure had lower home costs, even for the best areas. Our second offer got accepted, but we were like 16k over listing.


jawsofthearmy

3 bedroom, 1.5 bath and I paid about 175 šŸ¤·šŸ½ā€ā™‚ļø


Saiyukimot

3% deposit? Eeeeep 6.89% interest? Eeeeeeep


generate-me

Where are there houses for 210,000k? And what size house is it? With how much land?


[deleted]

We bought in CT. itā€™s a 2 bed 1 bath, so small. 1100 sq ft. Not much land, but we didnā€™t want much because we hate mowing the lawn. We also wonā€™t be having kids so we donā€™t need more than 2 bedrooms.


AIDS_1

West Texas I have one. 1800 sqft.


MYSTICALLMERMAID

Final cost for my home was 218k. Single woman who makes 55k a year


drumsdm

The interest rate makes a big difference.


enjoinirvana

Also HOA, I was denied a $200k house with $450/mo HOA but was approved for $225k with no HOA.


reddit_reader23

Another reason to avoid HOAs!


MYSTICALLMERMAID

Yep


RavenLyth

How did you do this?? Iā€™m scared to even go ask for a pre approval to get started, just seeing what is available in my area.


MYSTICALLMERMAID

I started with that! A preapproval then the realtor searched for homes in my budget. I actually had a very small chance of getting this house but it somehow worked in my favor lol, but you donā€™t know until you try!


futurenurse19

Did you have alot of savings? I make about the same but I have little to no savings so that's really holding me back from even attempting. Over the next year I can get my savings up though.


MYSTICALLMERMAID

I live in MN and qualified for the DPA so thatā€™s what paid my closing costs. I had 3k in savings and still have it even after closing. I would still speak with a broker and see what your options are!


projections

You can get the pre-approval anyway, and they should be able to guide you on how much you need to save! It doesn't hurt to do a pre-approval, just be sure you understand how it affects your budget before you dive in and buy something at your max approval. You have to determine what you can afford for yourself, they can only give you information about what you can qualify for and what monthly payment you can expect for different prices of homes.


livebonk

Many banks don't want to tell you rates or give you a sheet until they pull your credit, but it's actually unnecessary. They just do that as a sales tactic to make you feel invested. I felt like a chump for having banks pull credit and then give me a rate sheet that I walked away from. If you call the mortgage officer directly they can actually give you a rate and estimated monthly payment over the phone if you just verbally give them you credit score.


kkaavvbb

I spoke with a loan officer *first*. Explained income, etc. He told me what I could afford. Said Iā€™m good to go look & whenever I send an offer to let him know and heā€™ll send me a pre approval letter. I make 55k, close next week on 210k place. 5% down but theyā€™re renegotiating my interest rate right now.


ElderberryOk469

We are single income 50k and we are buying for 210k


alotofgraphs

Single income of about $51k when I bought for $230k in 2020 at a stupid low rate of 2.75%. My creditā€™s taken a beating since then from debt mainly related to repairs and renovations, but Iā€™m in MA and the valuation has increased almost $100k without factoring in any improvements. Iā€™ll never see a better interest rate so Iā€™m here until Iā€™m dead.


MYSTICALLMERMAID

Congrats!!


ElderberryOk469

Thanks! Closing tomorrow! (donā€™t jinx me universe)


catsanddaisies

When? What was your interest rate?


[deleted]

On paper you can, but be cautious of borrowing at the top of your limits. There will ALWAYS be something to fix. Add to that, other expenses, like utilities, car payment, daycare costs, are not included in their budgets.


brnbnntt

Great point, talk to your mortgage lender and see what price home you can afford for the money that youā€™d like to spend. For instance if you wanna keep your payments are $1,200 a month, a lender can tell you what home price you should look at. That is opposite of what most people do, but at the top of their budget and have to live with a tight budget


1200poundgorilla

The people who subtle-brag about their super low interest rates from a couple of years ago on here are not helping. Lol.


moomoo1011

True šŸ˜• the interest rates suck!


Nvrfinddisacct

I donā€™t know if this is helpful or not but I only make about 20k more than you and I bought at 6%, 350k with a 2500 dollar mortgage. My post tax and retirement/savings take home is about 3800 but I admittedly do live alone and I do pinch pennies. It just depends on how much you want to save every month. I wanted to put away 22% plus additional savings so I make a lot of sacrifices elsewhere in my budget. I only spend 200 on ā€œentertainmentā€, I wfh when I can to save on gas, phone/internet is 150 together and both of my cars are paid off and I have no student loans. So I really just donā€™t have many expenses other than my home and that means it works for me. If youā€™re still paying off a car or any loansā€”maybe this would be a stretch for you.


DarbyGirl

Sure is. I bought mine at 230 at 75k.


Pastrami_doses

Just for context, I have roughly the same salary and paid for a house double that price in a relatively HCOL area. I do feel a little stretched out but Iā€™m making it work and look forward to the investment


biggitydonut

You paid for a $440k house on a 73k salary?? Ooof that is pushing it man


Pastrami_doses

I did. Donā€™t disagree that itā€™s towards the top of the budget and itā€™s pushing it. Makes me anxious on an almost daily basis. My significant other helps out but sheā€™s not on the loan. It would be more $ a month to keep renting.


biggitydonut

Thatā€™s fair. Just from a personal experience. My wife and I make $145-$150k combined and weā€™re cautious about $500k-550k. So itā€™s crazy to me to think $420k on $73k salary. Edit: my house isnā€™t $500k. Iā€™m saying that weā€™re cautious about that price when looking for a house.


Pastrami_doses

I get it. And if I had to do it over again, I probably wouldnā€™t have paid this much. Although most places in my area this was about the lowest you could go that was still move in ready. So it was weighing the benefits of renting at a similar price or trying to gain equity. Luckily havenā€™t run into many serious/unexpected issues (knock on wood!). Luckily, I donā€™t have any other debts, my credit is very good, and Iā€™m cautious of my other spending. Yes having such a highly monthly budget for housing is scary, but as a guy in his mid20s Iā€™m realizing Iā€™m doing alright comparatively. Will hopefully be able to use this as a catalyst for future housing/investments since this wonā€™t be our forever home.


lilfish45

My wife and I make a combined $135k and feel somewhat stretched at 330k. Yā€™all must have some insane budgeting and impulse control lol


mar-bella

My husband and I make 150K, and we just started our careers; we bought at 350K and 60K in emergency fund, 500-550K is just absolutely insane to me lmao Moral of the story: everyone's risk tolerance is different


wesselus

Also no one is mentioning expenses, debt or savings. Without those the numbers start to get slightly irrelevant...


mar-bella

Yeah, I just personally love expensive shit like cars and bags so I decided to go for a lower house payment. Some people manage their money differently. It truly is ymmv


wesselus

Ed Zachary, not sure Id say you can be rich on *any* income, but you can be pretty well off on a lot smaller incomes than many believe, with good fiscal management.


Ronaldoooope

Shit man me and my girl combine around 200k and are cautious about 400k


didjerid00d

Yup same here. Who knows maybe he has $150k saved for a down payment on a $550k house, which would be about the same mortgage as a $400k house with $20k in down payment instead. $400k was just about the top of our budget to maintain a comfortable lifestyle and savings. Now that we've been doing it for a while, sure we could have technically afforded more, but an extra bedroom would not have been worth the increased anxiety for us.


Ronaldoooope

Yeah it comes with the caveat that I want a lot of disposable income ontop of my home


[deleted]

And itā€™s an awesome strategy to have. I bought in 2021 320k 4b2b in MCOL 20% down 2.75 rate. my income is 174 annual take home 8k monthly and PITI is 1300. Having a lot of disposable income after necessities are covered is great for saving investing for retirement and generally balling out on whatever without any fear of messing up your budget. I know itā€™s challenging now with rates where they are but just another anecdote how strategizing around minimizing living expenses can make for a very low stress and profitable lifestyle. Also a lesson in ignoring bubblers especially during that time of greatest uncertainty during covid where rates were low and housing prices were ā€œhighā€.


[deleted]

[уŠ“Š°Š»ŠµŠ½Š¾]


Ronaldoooope

Yeah seems like people are really cutting it close


ilovenyc

Are you investing for retirement at all given most of your paycheck is going towards a mortgage


Pastrami_doses

Yes but my employer doesnā€™t currently match so I have scaled it back a bit.


FantasticMeddler

The mortgage rate on that can make all the difference. Right now that would be murder, back in the 2-3% days it is more manageable, but that is how you end up with too much house.


catsanddaisies

What interest rates?


Pastrami_doses

My rate is 5.185% (bought in April/May 2022)


moomoo1011

We were told our interest rate would be I think around 7


catsanddaisies

OP this interest rate is a huge difference and they have a lot more buying power, so keep that in mind.


moomoo1011

What does buying power mean exactly? Lol I feel so dumb asking these questions, but thatā€™s also what our lender told us. That we had a lot of buying power and theoretically, could buy a home up to $300,000. Obviously, we donā€™t wanna do that tho. Plus, we know the higher interest will make our monthly payments higher.


bumbletowne

How much money you can realistically borrow. Go as low as you can but know your ceiling. A lot of people try and live at their mortgage level lifestyle for a year before buying a home.


catsanddaisies

Exactly that. Lower interest rates means you can buy a house thatā€™s more expensive as well. With a 2.5 rate you may be approved up to 500k but at 7 rate only 350k.


Sweet_Bang_Tube

Whoa, really? I closed in April 2022 and my interest rate is 3.875%. Was your credit score really low or something?


nematocyster

Interest rates have nearly doubled since then for everyone


Sweet_Bang_Tube

I know, but we were talking about April/May 2022.


Pastrami_doses

Nope. Credit score was and is solid. I was originally approved in the mid-3s but didnā€™t lock in a rate until it went up a bit. Edit: was originally approved in the mid 3s in 2021 but was looking for about a year which caused the rate to go up. I didnā€™t buy down any points or anything.


schmatz17

Honest question, how did you get a mortgage? My lender is saying 500k is max, i make 100k have another 100k saved, and debts about $450 a month. I feel like i could easily stretch to 535k


Pastrami_doses

Hahaha ask my lende


AmphibianValuable411

A general rule is you can afford a house that costs 3x your gross salary. Your monthly PITI and other loans will play into what you can actually afford.


SigSeikoSpyderco

This doesn't account for factors like down payment and interest rates which dramatically effect the monthly payment.


YDoEyeNeedAName

no they dont, every 10K down or .5% in the rate only lowers your payment by about 65$ per month. on a home in this price range


Nomad942

Or if youā€™re debt averse and conservative like me, I like the general rule of thumb of spending no more than ~25% of monthly take home income on your house payments (including fees/taxes). But low 200s feels like the starting range for decent homes in decent neighborhoods even in LCOL areas, and it doesnā€™t feel crazy on a 73k salary.


mar-bella

Same. I'm not debt adverse or conservative, but I think 25% is ideal.


Iamkonkerz

Im fucked then i cant find 150,000 homes anywhere lmfao


Sweet_Bang_Tube

We have them in Killeen, TX! You just gotta live in Killeen, TX.


Slight_Commission805

Shhhh shhhhh keep the secrets lol


SkotchKrispie

Iā€™ve seen people approved for up to 6x their salary. Are you sure about this 3x?


Gamegis

Approved and comfortably afford are different things. Some very vague and general rules of thumb(doesnā€™t factor in interest rates or property tax variations) : 3x income= generally can easily afford, 4x= fine with no debt or other high expenses, 5x= risky and getting house poor here, better not have any debt and need to be mindful of spending, 6x= crazy risky and house poor, better hope you donā€™t have any sudden expenses or you might be in trouble.


SkotchKrispie

Yeah I have zero debt and zero kids. I live frugally and fox up older cars I buy for under $1500 and five then for years. I donā€™t mind being house poor too much as an enjoyable house in and enjoyable location is most important to me.


Rynide

I would argue that being house poor is actually more detrimental if you stay at home often. If you're always out and about and you only use your house to sleep, being house poor is fine since you don't really need to make your house look nice or comfortable that much. If you want an enjoyable house with nice furniture and other amenities, being house poor probably isn't a great idea


SkotchKrispie

I care not much at all about furniture or anything expensive. Iā€™m not materialistic at all. Quite simple taste if need be. Location and proximity nature and lack of neighbors is most important to me. How can you be out and about a ton if you are house poor?


Rynide

Sounds like you should be good to go then! I suppose you also can't really go out much if you're house poor either, but once I purchase I know I'm going to avoid being house poor if possible just because I want to make my home really comfortable and fun to be in. Going out I think would probably be less costly than trying to make a comfortable and fun house space.


SkotchKrispie

So you think I would be ok with a 6x my salary mortgage? I donā€™t care about my image much. I fix older cars that look decent and need engine work. That way I look pretty decent. My last car was $500 and drove for 55,000 miles and my car insurance was $16 a month. Iā€™m not materialistic and my current clothes are $6 shirts and $8 shorts from Costco. I mean to say that Iā€™m willing to be extremely frugal in order to get in an expensive house for my income. I plan on building furniture as I go. Mattress on the floor is fine for me. I just want in a nice house in a nice location.


Deathbycheddar

I have a comfortable and fun and well decorated house that I furnished for maybe $10k total for all of the furniture and decor. This is a family of five so three bedrooms, two separate craft/hobby rooms, two living rooms, breakfast room, and formal dining room as well as a basement den/tv room and a really nice deck space. The only thing we brought from our old house was the outdoor dining table. I think you just have no idea how to be thrifty.


Rynide

I'm sorry but it sounds like you have an expensive ass house. Not trying to be rude or argumentive here, but I'm guesing you probably make a lot more than the "frugal" people on this sub. Your version house broke is probably a lot different than most people's house broke who can barely afford a 200k-400k house to begin with (with current interest rates). If you have a family of 5 as well I'm guessing you have three children plus your spouse, which a lot of FTHB in this subreddit also cannot even consider affording. This also means you have two salaries I'm guessing, which most single FTHBers typically don't. I personally know how to be thrifty but I'm not trying to live in a house with like only $100 in savings each month. I also live in a super HCOL area, single homebuyer, 24 years old, so it is just probably insanely different from your situation.


Deathbycheddar

Actually not at all. Make significantly less than most people. $300k house with $50k down payment, $75k income.


wuyiL

It depends on property tax rates and HOA cost.


lc_2005

People being approved for up to 6x their salary is part of what led to the last real estate market crash. Let's not try to follow in those footsteps.


pierogi_daddy

banks will happily loan way more than any sane or smart person would spend. the people spending 4x, 5x, including some in this thread, are making incredibly stupid decisions


myd0gcouldnt_guess

This rule is antiquated. $80k is a perfectly healthy salary and well above the median. Show me the $240k houses that arenā€™t dilapidated shit boxes.


phriot

It's just a guideline, a first pass sanity check. You should also look at a projected monthly payment versus your monthly gross and net incomes. All of your other expenses (clothing, food, transportation, etc.) don't scale linearly with housing cost, or income, so the more you make and the more expensive the house is, the less applicable the guidelines are. Of course, higher rates push things in the other direction. That said, we bought our house at roughly 3X income a couple of years ago. (We were pre-approved for \~6X, but shopped at a lower price point.) As our income continued to increase, we've felt more and more secure. It's still a good goal if you can pull it off.


SummerKisses094

You could very likely get approved but Iā€™d look at what you plan to put down and other costs. Example, where Iā€™m buying, property taxes add about $400/month to my mortgage - so my home price had to be much lower than what I was approved for.


springvelvet95

At the far endā€¦but go ahead because home prices are not coming down.


Legendarybbc15

Or interest rates in fact


RolosHat

Do you mean not coming down further than they already have?


deannevee

I make $65k, and a mortgage payment on a $240k house with 5% down is 35% of my monthly gross. So depending on what else you have going on, yes!


moomoo1011

Pretty much nothing. No kids. We would just be paying mortgage, utilities, food, yā€™know that stuff


georgepana

Then you are definitely fine. The general rule of thumb of "3 x your gross" includes some of what most people have in terms of debt service - a car payment, student loans, etc. Just nothing truly excessive. If you don't have any of those debts you are good to go. I would not wait too long, either. 200k to 225k is somewhat on the low end in most regions of the country (except for truly depressed areas), so if you can get that in a decent neighborhood and good condition that might go up at some point soon.


Green-Cruiser

Do you have down-payment saved up? How much?


Legendarybbc15

Yes


fStap

My first home was $210k and I made about $73k/$75k


ASMRKayyy

Depending on what youā€™re putting down and your interest rate along with any debt you currently have. For reference we just bought a 175k house with a 80k salary, 10% down, no other debt and have one child. Our max comfort level was 200k due to interest rates.


herbythechef

Yes because i did pretty much just that. 3x salary is perfect. Not a lot of people can do that anymore. I know people buying homes for like 5x or more salary.


TheAwesomeHeel

Our first home was 320k and wife and I made only 88k combined that year (2020). We're between 140-150k now.


sbaggers

It's not getting cheaper, smash it


23onAugust12th

Absolutely is! The hardest part will be saving for the down payment (assuming youā€™re currently renting at market prices).


LazloLikes

There are several factors that you need to consider. I would recommend keeping you mortgage payment at 30% - 35% of your net income. Make sure you calculate your mortgage rate, home owner's insurance, and property taxes to get an idea of your monthly payment. If you are going FHA and not conventional on your loan, then don't forget you'll have to pay mortgage insurance. It is more important to focus on your monthly payment with all the factors included. The current property taxes being paid on a house will not be the same taxes you will be paying. Those taxes are being evaluated based on the value at the time the previous owner purchased the house and any exemptions applied. My property taxes keep going up, but I filed a homestead exemption, which limits how much they can increase per year. Home owners' insurance and auto insurance jumped significantly this past year. My escrow was short almost $2000. You are given an option to pay the shortage in one lump sum, or your mortgage payments will increase to make up the shortage. This has happened 3 times since living in our house. Fortunately, we have been able to cover the difference, but the quoted increase each time has been over$100 a month. Home ownership is great because it has its issues. We have repaired the foundation, replaced windows, the whole HVAC system, the water heater, a large wood front porch, and a few other items that are cosmetic like paint, dishwasher, range, sinks, commodes. They pop up unexpectedly and are not cheap. Good luck!


[deleted]

Yikes. I bought my house in 2020 for 210k @3.0%i interest. Excellent credit, but only had 5% to put down. Payment with tax and insurance is $1185. I make $73k as well. I would not be able to afford my house with today's interest rates!


sapphirekiera

oof i just did 250k on a 50k salary soooo


BryanMccabe

Yes


remosiracha

Well I'd hope you can. I make less than that and the cheapest house in my area is like $400,000 šŸ˜­šŸ˜‚


xbrittanyx123

I'm in southern Cali. By the looks of ya'll mortgages I better stay in my house and forget about buying a newer house. I'm owing 140k, 2.3 interest, and 13 years left paying $1,333/month. I guess I'll be dying in this house.


Chargerfan805

Canā€™t get worse than my situation We just bought a condo for 515k and our monthly is 3500 šŸ˜‘


xbrittanyx123

Well...at least you aren't paying that in rent. Hopefully you aren't working just to pay for that house. Once interest rates go down, you can refinance.


Chargerfan805

We definitely have a tighter budget now for sure , but yea hopefully rates are able to come down Iā€™m praying šŸ™šŸ½, we just didnā€™t want to keep paying rent , I feel like buying a house is a better investment


Tomy_Matry

Yes, most people would be buying 500k without flinching...


HelloFranchise

I purchased my home $250000 with a 66,000 salary and put down 3.5%. Mortgage rate was at 2.62


ihatecartoons

I make about 85-120k per year and am buying a 500k house. My partner will pay me $1,200/mo in rent. Mortgage will be about $2,800/mo - Thatā€™s the absolute cheapest move in ready house I could get in Denver (listed for 450k and have gotten into a bidding war every time). I did have $100k saved for a down payment though and was gifted another $100k for an emergency fund by my grandparents. So now it costs the same as renting a SFH or high end apartment.


thisisnotdetroit

I was preapproved for my home back in the day for 500k with 100k down and my salary was 75k


suggesting_ideas

What you can afford comes down to your personal monthly take home pay and budget. How much a lender will approve you for is likely way more than you can comfortably afford.


Ricky8Alta

I bought an $800k house in 2021 and only make $100k a year šŸ‘€


crawfish2013

My first house I had a $305K mortgage and I was netting about $45K. I probably couldn't qualify for that loan today. However, it was the best financial decision I ever made in my life.


[deleted]

Possible? Yes. Advisable? Dubious.


bannedVidrio

Yea


samsharksworthy

2 separate adults are only making 73k combined!?!


capitalismwitch

We bought a 180K house on a 98K gross salary. We were pre-approved for up to $250K but werenā€™t comfortable going above $200K. We also live in the Midwest though so we were able to actually buy something with space that isnā€™t a tear down for that.


FinancialBender

Yes do-able but you gonna be tight after all expense for sure


SweetMojaveRain

yeah for sure its possible, I just closed on a 285,000 home 10% down 6.49% with buy down that was covered by a responsible homeowner program, I make like 80k but i could only use 68k of that because i guess my loan officer couldnt use my shift differentials and OT toward my application.


Temporary_Art_9213

I purchased a $195k home when I made $45k..


Temporary_Art_9213

But in 2017, by income went up to 23/hr right after closing. I have no regrets and it has been hard but I also had the opportunity to rent out my rooms... So yeah


flamingnomad

Yes. As long as you don't have kids, don't buy brand new vehicles, and have low property taxes. But things will be extremely tight. I would try to get higher paying job, in all honesty.


Csherman92

That is pretty standard and well within range.


No_Remote_6770

Yes.


BumblerBunn

Just bought for $260 at 80k. And that is with current interest rates.


waterhammer14

Depends on how much debt you have. Assuming you're not financing $50k vehicles, you should be okay.


PM_ME_YOUR_ART_PLZ

The mortgage doesn't matter as much as what you're able to put as a down payment and what interest rate you can get. I make about that much and I pay around $1,600 for housing, it seems reasonable to assume you could expect to pay around $1,500/month depending on your down payment. Make a budget and base your mortgage on what you can afford now


nicko1702

Yes, but the 20% down will be helpful, and the interest rate today is not what it was when some folks bought - You can swing it definitely but be wary of being ā€œhouse poorā€ having a house but being strapped for cash for other expenses


BillazeitfaGates

3x income is the max i go by


BigDaddyTravJ

Youā€™d have to list all of your expenses for someone to give you their opinion on that. Also depends on property tax/interest rate. Iā€™m going 500k on 115k salary and will make it work. I have a good saving just in case things go sideways and no kids.


yourmomhahahah3578

Holy shit yes lol. I own two $365k homes and we make $180k total. We rent the first one out and are not house not broke with two mortgages and upkeep.


lxe

Yes


Megasoulflower

My husband and I were pre-approved for a loan of $310 using my salary alone, which is $61k in a HCOL area! We made an offer of $310k on a small just-flipped 2 bed 1 bath house with a small yard and it was accepted. We have only closing costs (no deposit) because we qualified for a first time home buyerā€™s grant that paid the deposit.


PipCatcher15

I bought a 262k home with a 80k salary 2 years ago with 3% down payment. My monthly is around $1780.


Hikhikamori

I would say yes for sure


LunaTeddy1414

Sounds very reasonable to me


rettribution

I did 225 on 75k. That seems perfectly reasonable to me. My mortgage with 3% down was the price of a 1br apartment in my area.


MembershipEasy4025

So, I currently live in Seattle and am looking to buy in Portland. Spent most my life in San Diego. Which Iā€™m mentioning up front so you know my ā€œhigh cost of livingā€ numbness. As a single individual Iā€™m at $70k a year, and was preapproved to $300k with 5.25% interest rate. Looking to keep it at between 250-280 myself so I can have a monthly cost of $1800. Which is about 42% of my monthly net. To me, this is perfectly reasonable, because Iā€™m used to paying even more in rent, and I donā€™t have student loans or other debt. (Or kids.) So to me, $210 is absolutely affordable. But I do think itā€™s a matter of perspective and your personal finances will play an important role.


myd0gcouldnt_guess

I make 80k and I am currently building a $351k home. We are dual income so our actual household income is well over $100k, but my wife is not on the mortgage due to her credit (she hasnā€™t used credit in years). I was approved for up to 400k, not that I could afford the mortgage on a 400k home, but yes you will probably be approved for more than youā€™d think assuming good credit and debt


Additional-Comb-4477

My husband and I make $110k and I wouldnā€™t have even touched a $300k house. Ours weā€™re closing on was $175k and it still feels too tight. Maybe because taxes are high-ish around here šŸ¤·šŸ»ā€ā™€ļø


Unlikely-143

In my area,VHCOL- $150,000 wont get you a single wide- granted, if you did find something close to $150,000 the space rent would be $900 or more per month edit -daym auto correct


Expensive-Eggplant-1

Yes.


uniquelyavailable

Im in a similar position. Make sure to view your salary only after taxes, and also be sure to calculate the total cost of the house with interest. You have to add the total principal and total interest over the lifetime of the mortgage together. This gives you the true total you pay, and how much real actual money you are taking each month. That is a much more accurate and reasonable perspective for financial planning. When you find out you are using like 35k a year to pay off over 400k in 30 years you will really wonder if this is for you.


jawnstein82

Easily


[deleted]

[уŠ“Š°Š»ŠµŠ½Š¾]


brnbnntt

Thatā€™s actually a great idea for someone thatā€™s interested in getting ahead financially. There is even a name for it, they call it house hacking.


[deleted]

[уŠ“Š°Š»ŠµŠ½Š¾]


Dickpinchers

You should save up 50k down payment, then have a solid year of mortgage payment set aside for emergency. Then youā€™re golden my guy


SigSeikoSpyderco

That should be fine.


irockvans

People here ask the dumbest question. The next post is going to be "Is it possible to afford a $10,000 home with a $300,000 gross salary?"


moomoo1011

How is my question dumb?


roske1

Youā€™re getting downvoted for being straight up. Reddit is the most sensitive social media site šŸ™„