What income is needed to buy a $400,000 home?

With 10% down at 7%, PITI approximately $2,800/month. At 28% front-end DTI: need $10,000/month ($120,000/year) gross income. At 36% back-end DTI with $500/month other debts: need $9,167/month ($110,000/year).

What types of income count for mortgage qualification?

Salary/wages (100%), self-employment income (2-year average), rental income (75% of gross), pension/SS (100%), investment income (if consistent 2+ years), overtime/bonus (typically 2-year average).

Does all income have to be documented?

For conventional qualified mortgages: yes, full documentation required. Some non-QM (non-qualified mortgage) programs allow bank statement loans, asset depletion, or DSCR qualification for self-employed and investors.

Mortgage Qualifying Income Calculator

Calculate the minimum gross monthly income needed to qualify for a target home price given current debts, down payment, and local taxes and insurance.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate the minimum gross monthly income needed to qualify for a target home price given current debts, down payment, and local taxes and insurance. Use the qualifying income result to inform your calculation.

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Mortgage Qualifying Income Calculator

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Frequently Asked Questions

What income is needed to buy a $400,000 home?

What types of income count for mortgage qualification?

Does all income have to be documented?