What salary do I need to buy a $400,000 house?
To buy a $400,000 house with 10% down ($40,000), you borrow $360,000. Using the 28% front-end DTI rule at 7%, you'd need roughly $105,000 of income — less with a bigger down payment.
How this is calculated
- ·10% down payment ($40,000)
- ·$360,000 borrowed at 7%, 30-year
- ·28% front-end DTI rule
- ·Excludes taxes/insurance which raise the income needed
Income needed for a $400,000 house
| Down payment | Income needed |
|---|---|
| 5% down | ~$112,000 |
| 10% down | ~$105,000 |
| 20% down | ~$92,000 |
Frequently Asked Questions
What is the 28/36 rule?
Lenders prefer housing costs under 28% of gross income (front-end) and total debt under 36% (back-end). Both affect how much house you can afford.
Does a bigger down payment help?
Yes — it lowers the loan, the monthly payment and the income needed, and a 20% down payment removes PMI entirely.
Are taxes and insurance included?
They should be. Property tax and homeowners insurance vary by state and can add hundreds a month, raising the income you need.
M Singh CeMAP DipFA · 25+ Years UK Financial Services
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M Singh CeMAP DipFA · 25+ Years UK Financial Services
Important Information
This calculator is for informational purposes only and does not constitute financial advice or a personal recommendation.
Results are estimates based on the information you provide and may not reflect your actual financial position.
You should consider seeking independent professional advice tailored to your specific circumstances before making any financial decision.