How Much Do I Need To Make To Buy A $150,000 Home?
It will depend on your credit score and the other debts from your credit report but let’s say we want to keep your debt to income ratio at 31% or less of your income. I feel this is a good place to be. You can go higher and actually much higher but I think it is best to not go over 36%.
Here is a breakdown of the payment based on putting 3.5% on an FHA loan with an interest rate at 5% on a property in South Florida:
Loan Amount – $146,197
Principle & Interest – $784.82
Homeowners Insurance – $225
Property Taxes – $250
Mortgage Insurance – $137.79
Total Payment of $1,397.61/month
You would have to make $26.50/hour working 40 hours per week individually or $13.25/person if you are buying with someone else. That comes out to $55,120/year.
Always make sure to consult a mortgage expert to make sure your credit, income, assets, etc. meet FHA lending standards.