Quick Answer: Income Needed for a $350k Mortgage
To comfortably afford a $350,000 house, you need an annual gross income of $85,000 to $100,000. This assumes you are putting 10% to 20% down, securing a 6.5% interest rate, and keeping your monthly debts low. If you have significant debt, you may need to earn over $110,000 to qualify.
The Full Calculation: Running the Affordability Math
When you apply for a mortgage, lenders don't care how much you "feel" you can afford. They use rigid Debt-to-Income (DTI) metrics. Let's look at the numbers for a $350k home purchase.
Assuming a 10% down payment ($35,000) at 6.5% interest:
- Loan Amount: $315,000
- Principal & Interest: $1,991
- Taxes, Insurance & PMI (Est): $550
- Total Monthly Housing Payment: $2,541
According to the 28% rule, your housing payment should be no more than 28% of your gross income.
$2,541 ÷ 0.28 = $9,075 per month gross income.
$9,075 × 12 months = $108,900 annual salary required.
Note: If you have zero existing debt, a lender may stretch your approval up to a 36% or 43% DTI, meaning you could potentially qualify with an $85,000 salary. But it will be a very tight budget.
What Affects This Number?
The required income is a sliding scale based on your specific situation:
- Auto Loans: If you have a $600/month car payment, the bank assumes you have less cash for a house. You will need to earn an extra $15,000 to $20,000 a year just to offset that car payment in their calculations.
- Interest Rates: A jump from 6.5% to 7.5% adds roughly $220 to your monthly payment, meaning you will need a higher salary to qualify for the exact same house.
- Property Taxes: High-tax states like New Jersey or Illinois can add $800+ a month to your escrow payment, requiring a significantly higher income to qualify for a $350k home compared to a state like Tennessee.
How to Lower Your Payment and Qualify Easier
If you don't make $100,000, you aren't priced out of a $350k home. You just have to optimize your financial profile:
- Bring a Larger Down Payment: Putting 20% down ($70,000) eliminates PMI and reduces the loan size to $280,000. This drops the monthly payment to $2,250, lowering the required salary to roughly $96,000.
- Clear Your Debt: Aggressively paying off student loans or credit cards before applying lowers your DTI, allowing the lender to approve you on a smaller salary.
- Add a Co-Borrower: Applying with a spouse, partner, or family member allows you to combine your incomes to easily clear the $100k threshold.
Use Our Free Calculator
Don't rely on generic salary estimates. Every buyer has a unique debt and tax situation.
Run Your Exact Salary Math
Input your income, debts, and down payment to see if you qualify for a $350k house.
Use the Affordability Calculator →Frequently Asked Questions
Can I buy a $350k house making $70k a year?
It is highly unlikely you can buy a $350k house on a $70k salary unless you are making a massive down payment (e.g., $100,000+) to significantly reduce the loan amount, or you have absolutely zero debt and exceptional credit.
How much is a down payment on a $350,000 house?
A 20% down payment is $70,000. A 5% conventional down payment is $17,500. A 3.5% FHA down payment is $12,250.
Are closing costs included in the down payment?
No. Closing costs are a separate expense and typically run between 2% and 5% of the loan amount. For a $350k home, expect to need an additional $7,000 to $17,000 in cash at closing.