On $100,000 combined household income, you can typically afford a $300,000-$400,000 house. Here’s the breakdown.
Quick Answer
| Conservative (28% rule) | Moderate | Aggressive |
|---|---|---|
| $300,000 | $350,000 | $400,000 |
Assumes 6.5% interest rate, 20% down payment, typical taxes/insurance
Maximum Monthly Housing Payment
| Rule | Calculation | Max Monthly PITI |
|---|---|---|
| 28% front-end ratio | $100,000 × 0.28 ÷ 12 | $2,333 |
| Conservative (25%) | $100,000 × 0.25 ÷ 12 | $2,083 |
House Price by Down Payment
With a $2,333/month PITI budget:
| Down Payment | Home Price | Loan Amount | P&I Payment |
|---|---|---|---|
| 5% ($17,500) | $350,000 | $332,500 | $2,101 |
| 10% ($35,000) | $350,000 | $315,000 | $1,991 |
| 20% ($70,000) | $350,000 | $280,000 | $1,770 |
| 20% ($80,000) | $400,000 | $320,000 | $2,022 |
6.5% interest, 30-year fixed
Full Monthly Payment Breakdown
On a $350,000 house with 20% down:
| Component | Amount |
|---|---|
| Principal & Interest | $1,770 |
| Property Tax | $360 |
| Homeowners Insurance | $200 |
| PMI (if < 20% down) | $0 |
| Total PITI | $2,330 |
Almost exactly at the 28% limit.
How Other Debts Affect Affordability
Lenders use the 36-43% back-end (DTI) ratio for all debts:
| Existing Debts | Max Housing | Home Price Impact |
|---|---|---|
| $0/month | $2,333 | $350,000+ |
| $300/month (car) | $2,033 | $310,000 |
| $500/month (car + student loans) | $1,833 | $280,000 |
Two Incomes: Pros and Cons
Advantages:
- Higher combined borrowing power
- Easier to save for down payment
- One income can cover payments if needed
Risks:
- Job loss impacts mortgage payments
- Don’t stretch to max just because you can
- Consider: Can one income cover payments alone?
Where $100K Combined Income Goes Furthest
| City | Median Home Price | Affordable on $100K? |
|---|---|---|
| Pittsburgh, PA | $230,000 | ✅ Very comfortable |
| Columbus, OH | $285,000 | ✅ Comfortable |
| Austin, TX | $450,000 | ⚠️ Stretching |
| San Diego, CA | $900,000 | ❌ No |
