What was your income compared to your house price?

posted 3 years ago in Home
Post # 3
926 posts
Busy bee
  • Wedding: September 2013

Work backwards on the finances.  See what you bring home a month vs what of that you could afford to have as a mortgage payment.  I wouldn’t trust the online calculators.  Rule of thumb I always heard was your mortgage should be 1/4 of your total monthly income.  Our house cost about twice as much as our annual income combined.  $200,000 is very reasonable for an income of $90,000.  You will most likely get approved for much more than $200,000. 

Post # 4
968 posts
Busy bee
  • Wedding: July 2013

@dancindavinci:  your downpayment will also determine a lot of it.

I purchased a house for $269,900 with a downpayment of $55,500 and an income of $65,000

Great Credit Score and zero other debt.


The general rule is you can carry a debt of 4* your income. So for you and your FI you could carry up to 360 so its probably your other debt and payments that are holding you back. I would talk to a bank directly, getting pre-approved does not cost you anything 🙂

Post # 5
10748 posts
Sugar Beekeeper
  • Wedding: February 2014

What size of downpayment do you have? That would increase your house price budget as you’d have that on top of what size of mortgage they would give you. 

When we bought our house 2 years ago, we were making about $200k combined. We were looking at houses between $450-600 and they said sure no problem, but we actually never asked what the top limit would be. We had also told them we had $150k for downpayment. So I guess the maximum mortgage we were considering was $450k. 

Based on that, I’d assume you guys could get $200k mortgage since ours was allowed to be at least double our salary. Do you have any debts at all? That’s probably another factor, we didn’t have car payments or anything so I’m not sure how that works in to everything. 

Post # 6
3570 posts
Sugar bee
  • Wedding: September 2011

I would try another calculator.  When I put 80K into the zillow calculator, I get 320K back.

Post # 7
11604 posts
Sugar Beekeeper
  • Wedding: November 1999

Talk to a mortgage broker or bank – seriously. They will look at your specific finanecs and give you a number.

DH and I are going through this right now. You will get pre-approved for WAY more than you need, and more than you should probably take, if you have a decent downpayment and excellent credit scores. When we got our preapproval numbers, I laughed and said, “Well, that’s how people get into trouble!”

Post # 8
5518 posts
Bee Keeper
  • Wedding: November 2012

@dancindavinci:  DH and I are a little over 90 and our house was 205.

Post # 10
3635 posts
Sugar bee
  • Wedding: May 2012

When husband bought his house, it cost a little more than twice his yearly income.  At the time he was working a lot of OT to save for the house, also, and his downpayment was a little over 40% of the home price. 

Now – our home value is less than our combined income.  Both because we make more combined and out house is worth less.  Based on what he paid for it, it’s a little bit over 10% higher than our combined income. 

We live well below our means, however.  Pretty much all my income goes into savings/stocks so we can save for a bigger/better place.  You need to figure out (with the help of an actual banker) how much you can get approved for an how much you’re comfortable comitting to a mortgage payment out of your take-home pay. 

Post # 11
280 posts
Helper bee
  • Wedding: August 2013

We bought a $390,000 house with an income of $130,000.

Post # 12
753 posts
Busy bee
  • Wedding: December 2014

Together, we make about $65,000 before taxes- a little more, probably, if you count my on call pay and overtime. Our house (which we close on in three weeks, yay!!) is $203,000. We never really asked what our upper limit was, but $203,000 wasn’t even close to it. I should mention that we also do have my student loans, so it’s not like we don’t have any debt, either. AND, we’re doing an FHA loan, so that’s a pretty small down payment- 3.5%. 

Sounds like you can afford a lot more than the calculator’s telling you! 🙂 

Post # 13
2642 posts
Sugar bee
  • Wedding: September 2012

Seems like you should be able to purchase a $200K home on a combined take-home of $90K a year.  Maybe you entered something wrong?

First, you should find yoru credit scores and figure out the approximate rate you’d get.  I’d try here


Then figure out the amount you want to put towards a downpayment.  Don’t forget to set money aside for an emergency house fun.  There will be stuff you’ll need to fix right away and there will be stuff you need to buy right away.

Once you have your interest rate and downpayment you can get an estimate of what kind of mortgage you can exepct.  I’d try




The .org site includes PMI (for if you don’t have 20% down) and taxes.  However the default tax rate is 1.25% which seems very high to me.  Our tax rate is something like 0.015% of the value of our home.  Now it’s going to vary based on location.  So that’s something to take into consideration.  This also doesn’t include home owners insurance

The bankrate calculate looks to do strictly mortgage.  So you’d have to account for taxes and home owners insurance and potential PMI.

If you are still unsure of what you can afford, talk to a bank and ask what they think you can get preapproved for.

Post # 14
10453 posts
Sugar Beekeeper
  • Wedding: January 2011

I got concerned when I tried a calculator and saw how small of a number it spit out.  I tried a few and they were all different though.

When we actually went and got preapproved, it was for much higher and we didn’t go for the max amount.

Post # 15
1162 posts
Bumble bee
  • Wedding: May 2014

Depends on your credit, debt to income ration and income. FI and I bring home together 90k, we are 24 and 25 so life is still unpredictable and we both plan on going back to school.

We orginally planned to buy a home for 200k, but realized that it would be great to start even lower because of the “cost of homeownership”

We purchased a home for 168k, it’s a lovely 3 bedroom two bath townhouse with everything we wanted.

Try to stay under budget you will appreciate it later.

Post # 16
1162 posts
Bumble bee
  • Wedding: May 2014

@RunsWithBears:  + 1 also, make sure you ask any house you look if there’s an HOA fee, ours is $113 a month, but they cut our grass, take care of trees, snow removal, care for shrubs, and take care of the community as a whole. 

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