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.

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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?