How much do you need to make to buy a 200k house?

If you are looking to purchase a house that is worth 200k, you need to be earning approximately $40k per year. This is assuming no other debts and that good credit rating. The question is how much do you need to make to buy a 200k house?

Generally speaking the amount that you can qualify for is a maximum range of 20% of your gross declared income. In other words if you are looking to qualify for a 300k mortgage, the income you will need to be earning is 60k per year.

I make 30k per year, can I buy a house?

If you are earning 30k per year, assuming again that you have no other debts and your credit is good, then the maximum mortgage you can qualify for is approximately 150k.

How much income do you need to buy a $650,000 house

Generally speaking again, if you are after a $650,000 purchase / mortgage, you must have an income of a minimum 130k per year with no other debts.
Of course the percentage of down payment will matter as well, as if you have 20% or more down, you are able to extend the maximum amortization of your loan to 30 years. If you have less than 20% down, your mortgage is considered high ratio, and the maximum amortization on high ratio mortgages is 25 years.

There are many other factors that can come in to play as well. If the property has a rental suite, the rental income from the suite can be taken to add to your income, or to reduce the amount of your monthly mortgage payment in the qualifying calculations.

There are also some lenders that follow their own internal stress test, which is lower than the national stress test, and this can help increase the amount that you qualify for.

There are also some national lenders, who are able to extend out the debt service ratio guidelines given the entire picture meets their comfort levels. All of these can be reviewed as potential options, if you have 20% down payment or more available.

It is best to consult an experienced mortgage broker to help guide you through these calculations and do an assessment for you. You will need to provide some basic information in order for anyone to do the calculations for you. There are some calculators that you can find online, and while they provide a good general idea, I’ve personally found them to be off when clients have shared their results and compared them to our numbers.

There is no obligation to consult and get some information at the onset, so my advice would be to consult with a professional that can provide you with more than one option.



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