Monthly income needed on a $175,000 home
Each row is the gross monthly income, before taxes, that the calculator needs to approve a $175,000 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 debts | FHA | Conventional | VA | USDA |
|---|---|---|---|---|
| $0 | $3,140 | $3,130 | $3,420 | $5,090 |
| $400 | $3,290 | $3,930 | $3,910 | $5,090 |
| $800 | $4,000 | $4,730 | $4,400 | $5,550 |
FHA's 3.5% down payment on $175,000 is $6,125, 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, $5,250 here.
The payment behind the number
On FHA the full house payment comes to about $1,471 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 $1,471 a month calls for about $3,137 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 $3,290 a month with $400 in debts, and Conventional is out until 620.
- At a 740 score, Conventional needs about $3,740 a month, because its mortgage insurance gets cheaper as the score rises. FHA stays near $3,290.
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.
$3,290 a month is about $18.98 an hour at 40 hours a week. The $40,000 a year page shows the price range for pay near that level.