How much do you need to make to buy a $300,000 home with an FHA loan?
The answer is just *slightly* more complex than you’d think.
There are a few things that really impact how much you can afford:
- Interest Rates
- Property Insurance Rates
- HOA Fees
- Flood Insurance
Ironically your credit score won’t have as large of an impact as you’d think when working with FHA Loans. There may be a slight increase in interest rate for someone with not so great credit.
Let’s answer your question a little more directly:
FHA allows you to spend up to 43% of your monthly income, so let’s run those numbers with an interest rate of 6.25%.
With a loan amount of $289,500 you’ll need a $10,500 down payment and your monthly payment with mortgage insurance is $1814.83.
If the new house is the ONLY payment you have (no cars, credit cards, etc) you would have to have a gross income of $50,646.42 per year. Gross income is calculated before taxes, so that helps a bit too!
Q: How much do you need to make to buy a $300,000 home with an FHA loan?
A: $50,646 per year
