Home Buying Guide
Earning $100,000 a year puts you in a strong position to buy a home. But how much house you can actually afford depends on more than just your salary — your debts, down payment, credit score, and local taxes all play a role. Here's exactly how to figure it out.
Quick answer: On a $100,000 salary with a 20% down payment and no other major debts, most buyers can comfortably afford a home in the $350,000–$450,000 range. Read on to see how we get there.
The most widely used guideline says your total monthly housing costs — mortgage payment, property taxes, homeowner's insurance, and HOA fees — should not exceed 28% of your gross monthly income.
On a $100,000 salary your gross monthly income is $8,333. At 28%, your target monthly housing payment is $2,333.
At today's rate of approximately 6.75% on a 30-year fixed mortgage, here's what a $2,333 total payment translates to in home price — depending on your down payment:
| Down Payment | Down Amount | Loan Amount | Est. Home Price |
|---|---|---|---|
| 5% | $18,750 | $356,250 | ~$375,000 |
| 10% | $38,889 | $350,000 | ~$389,000 |
| 20% | $84,000 | $336,000 | ~$420,000 |
Note that putting less than 20% down adds PMI to your payment, which reduces the loan amount you can afford. The 20% down scenario gives you the most purchasing power and eliminates PMI entirely.
Lenders also look at your debt-to-income ratio (DTI) — your total monthly debt payments divided by gross monthly income. Most conventional loans require a DTI below 43%.
On $100,000/year, 43% of $8,333 = $3,583 maximum total monthly debt. If you have a $500 car payment and $200 in student loans, that leaves $2,883 for housing — more room than the 28% rule, but use the more conservative number.
Your mortgage payment is just part of the picture. Budget for these too:
| Cost | Typical Amount |
|---|---|
| Property taxes | 1–2% of home value per year |
| Homeowner's insurance | $100–200/month |
| PMI (if <20% down) | $150–300/month |
| HOA fees | $0–500+/month |
| Maintenance | 1% of home value per year |
Don't forget you'll need cash for closing costs on top of your down payment — typically 2–5% of the loan amount. On a $400,000 home that's $8,000–$20,000 at closing. Make sure you have this in savings before you start shopping.
Use our free calculator to model your specific scenario — with your actual debts, down payment, and local taxes included.
Open the Calculator →On $100,000 a year, a home in the $350,000–$450,000 range is generally achievable with solid credit and a reasonable down payment. The exact number depends on your debts, savings, and local tax rates. Use the calculator above to plug in your real numbers — it takes about 30 seconds and gives you a complete picture including PMI, taxes, and total interest over the life of the loan.
This article is for educational purposes only and does not constitute financial or mortgage advice. Consult a licensed mortgage professional for guidance specific to your situation.