How the income requirement is calculated
The calculator finds your full monthly housing payment: principal and interest, property tax for your state, homeowners insurance and PMI when the down payment is under 20%. It then divides by the housing ratio to get the income that keeps housing within the guideline, and by the total-debt ratio to get the income that keeps all debts within the guideline. The higher of the two is the income you need.
| Home price | Income needed, 20% down | 10% down | 5% down |
|---|---|---|---|
| $200,000 | $55,000 | $65,000 | $68,000 |
| $300,000 | $82,000 | $97,000 | $101,000 |
| $400,000 | $109,000 | $129,000 | $135,000 |
| $500,000 | $137,000 | $162,000 | $169,000 |
Estimates at 6.5% for 30 years with a 1.1% property tax rate, 0.5% insurance, PMI under 20% down, no other debts, and the 28% housing guideline. Your exact figure depends on state, rate and debts.