Income Needed for a $350,000 House
Find out how much annual income you may need to comfortably afford a $350,000 home at various down payments and interest rates.
Estimated Annual Income Needed
$79,836
Based on 7% rate, 30-year term, 20% down, 28% DTI
Monthly P&I: $1,863
Income Needed by Down Payment and Rate
Annual gross income required using the 28% housing-ratio guideline. 30-year fixed term.
| Down Payment | 6% | 6.5% | 7% | 7.5% |
|---|---|---|---|---|
| 3% ($10,500) | $87,235 | $91,966 | $96,802 | $101,736 |
| 5% ($17,500) | $85,436 | $90,070 | $94,806 | $99,638 |
| 10% ($35,000) | $80,939 | $85,329 | $89,816 | $94,394 |
| 20% ($70,000) | $71,946 | $75,848 | $79,836 | $83,906 |
Understanding Debt-to-Income Ratios
Lenders use the debt-to-income ratio (DTI) to assess how much of your gross monthly income goes toward debt payments. The front-end ratio (housing ratio) covers your mortgage payment, property taxes, and insurance. Most conventional lenders prefer this to be at or below 28%.
The back-end ratio includes all monthly debts such as car loans, student loans, and credit card minimums. Conventional guidelines typically cap this at 36% to 43%, although some programs allow higher ratios with compensating factors.
The estimates on this page use the 28% front-end ratio and cover principal and interest only. Your actual required income may be higher once property taxes, homeowners insurance, and PMI are included.
Frequently Asked Questions
What salary do I need to buy a $350,000 house?
With 20% down, a 7% interest rate, and a 30-year term, the estimated monthly principal and interest payment is $1,863. Using the 28% housing-ratio guideline, you would need a gross annual income of approximately $79,836. Actual requirements vary based on debts, credit score, and loan program.
How does down payment size affect the income I need for a $350,000 home?
A larger down payment reduces your loan amount and monthly payment, which lowers the income threshold. For example, putting 20% down versus 3% down on a $350,000 home can reduce the required income by tens of thousands of dollars per year.
Does the 28% DTI rule apply to all loan programs?
The 28% front-end DTI ratio is a common conventional guideline. FHA loans may allow up to 31% for housing expenses, and VA loans focus on a 41% total DTI rather than a strict housing ratio. Your lender will evaluate your complete financial picture.
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