How Much House Can I Afford on a $50k Salary?

Buying a home on a $50,000 salary is challenging in today's market, but it's not impossible. The key is understanding your debt-to-income ratio (DTI) and budgeting carefully.

The 28/36 Rule

Most lenders follow the 28/36 rule:

28%: Your monthly housing expenses (PITI) should not exceed 28% of your gross monthly income.
36%: Your total monthly debt payments (housing + car loans + credit cards, etc.) should not exceed 36% of your gross monthly income.

Crunching the Numbers

With a $50,000 annual salary, your gross monthly income is approximately $4,167.

Max Housing Payment (28%): $1,167
Max Total Debt Payment (36%): $1,500

If you have no other debt, you might qualify for a monthly mortgage payment of up to $1,500 (depending on the lender's flexibility), but sticking closer to $1,167 is safer.

Factors Affecting Affordability

Interest Rates: Higher rates reduce your buying power significantly.
Down Payment: A larger down payment lowers your monthly payment and avoids PMI.
Credit Score: A higher score qualifies you for better interest rates.
Location: Property taxes and insurance vary widely by area.

Use our Mortgage Payment Calculator to experiment with different loan amounts and interest rates to see what fits your budget.