How much house can I afford on $50,000?
Based on the 28/36 debt-to-income guideline.
$153,816
home price on a $50,000 salary at 6.5%, 10% down, 28% front-end ratio, no other debt
Affordable price by mortgage rate
| Rate | Home price | 10% down | Max housing cost/mo |
|---|---|---|---|
| 6% | $162,159 | $16,216 | $1,167 |
| 6.5% | $153,816 | $15,382 | $1,167 |
| 7% | $146,132 | $14,613 | $1,167 |
| 7.5% | $139,045 | $13,904 | $1,167 |
Assumes 25% of the housing budget goes to property tax, insurance and PMI. Car loans, student loans and card payments reduce this under the 36% back-end rule.
With other monthly debt (6.5%)
| Other debt/mo | Home price |
|---|---|
| $0 | $153,816 |
| $300 | $153,816 |
| $600 | $118,658 |
| $1,000 | $65,921 |
FAQ
How much house can I afford on $50,000 a year?
Roughly $153,816 at a 6.5% rate with 10% down and no other debt, keeping housing at 28% of gross income ($1,167/month).
What is the 28/36 rule?
Lenders traditionally want housing costs under 28% of gross monthly income and all debt payments under 36%.