How Much House Can I Afford on a $100K Salary?

The Short Answer

On $100K you can typically afford a home around $380K-$485K. The 28% rule limits your housing payment to about $2,333/month.

The Detailed Breakdown

Calculated using the 28/36 DTI rule with a 30-year fixed mortgage at 6.75% and 10% down.

CalculationValueAssumptions
Conservative (28% Rule)$380,00028% gross income, 10% down, 6.75% rate
Moderate Estimate$430,00032% gross income, 10% down, minimal debts
Aggressive (36% Rule)$485,00036% gross income, no other debts

Key Assumptions

  • 6.75% fixed 30-year mortgage rate.
  • 10% down payment.
  • Property taxes at 1.1% annually.
  • Homeowners insurance at $1,200/year.

Adjust for Your Situation

On $100K, target homes around $380K-$430K to maintain financial flexibility.

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What Affects This Result

Credit Score

A 740+ score could add $30K+ in buying power.

Location

High-tax states like NJ (2.2%) reduce buying power significantly.

Existing Debt

Student loans or car payments reduce approval amounts.

Frequently Asked Questions

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