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How much income do I need for a $150,000 house?

By AAA Capital Funding, Inc.Reviewed by Jason J. Sarji, NMLS #374700Numbers from the QualRate calculator
Short answerTo buy a $150,000 home in most of Florida with FHA and $400 in other monthly debts, you need about $3,000 a month before taxes, or $36,000 a year. FHA 100% financing needs the same income and covers the $5,250 down payment. VA needs about $3,710 a month with $0 down, and Conventional about $3,560.

Monthly income needed on a $150,000 home

Each row is the gross monthly income, before taxes, that the calculator needs to approve a $150,000 home at a 650 credit score and a 5.75% rate. Taxes use Florida's statewide estimate of 0.74% of the price a year and insurance is $283 a month.

Other monthly debtsFHAConventionalVAUSDA
$0$2,780$2,760$3,100$4,500
$400$3,000$3,560$3,710$4,500
$800$3,700$4,360$4,200$5,140

FHA's 3.5% down payment on $150,000 is $5,250, and FHA 100% financing covers it with down payment assistance, so the income column doesn't change. VA and USDA need no down payment. Conventional starts at 3% down, $4,500 here.

The payment behind the number

On FHA the full house payment comes to about $1,301 a month: principal, interest, property taxes, homeowners insurance and FHA mortgage insurance. FHA lets that payment use up to 46.9% of gross income and the payment plus other debts reach 56.9%, so $1,301 a month calls for about $2,774 a month in income before debts start to matter.

USDA needs more income than FHA on the same home because its housing payment can only use 29% of income. VA looks at money left over each month as well as the debt ratio, which is why its number moves differently from FHA's.

How your credit score changes it

  • At a 600 score, FHA needs about $3,000 a month with $400 in debts, and Conventional is out until 620.
  • At a 740 score, Conventional needs about $3,400 a month, because its mortgage insurance gets cheaper as the score rises. FHA stays near $3,000.

If your income comes up short

A parent or grandparent on Social Security or SSI can co-sign on FHA, and FHA counts their non-taxable income at 115%. Paying off a car loan lowers the income needed, and overtime, a second job or a spouse's pay all count when they have a steady history. Run your own numbers in the price check, or call AAA Capital Funding at 888-601-8344 and we'll run this price on every program with you.

$3,000 a month is about $17.31 an hour at 40 hours a week. The $35,000 a year page shows the price range for pay near that level.

AAA Capital Funding, Inc. · Mortgage broker since 1997

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Common questions

Can I buy a $150,000 house on $36,000 a year?
Yes, on FHA, if your other monthly debts are around $400 or less and your credit score is 580 or higher. That income works out to about $3,000 a month, enough to carry the payment of about $1,301.
What is the monthly payment on a $150,000 house in Florida?
With FHA and 3.5% down at a 5.75% rate, the full payment is about $1,301 a month, including property taxes at Florida's statewide estimate of 0.74% of the price, $283 a month for homeowners insurance and mortgage insurance.
How much cash do I need for a $150,000 house?
FHA's 3.5% down payment is $5,250, and FHA 100% financing can cover it with down payment assistance from a 580 score. Closing costs come on top, and the seller can pay up to 6% of the price toward them on FHA. VA and USDA need no down payment.