A single paycheck buys a lot of Florida homes. Single buyers, single parents, and couples where one spouse stays home all qualify on the same ratios as two-income households, and FHA's limits are generous enough that a moderate salary reaches a real Florida price.
What one income buys on FHA
FHA with an automated approval allows the house payment to reach 46.9% of your gross monthly income, before taxes, and all your monthly debts including the house to reach 56.9%. Here's what that means at a 5.75% rate, with property tax at 0.95% of the price a year (the high end of the 0.74% to 0.95% range QualRate uses for Florida), insurance of $283 a month and $300 in other monthly debts:
| Gross monthly income | Highest FHA price | House payment |
|---|---|---|
| $4,000 | $228,000 | $1,870.79 |
| $5,000 | $296,000 | $2,344.34 |
| $6,000 | $363,000 | $2,810.93 |
| $7,000 | $430,000 | $3,277.52 |
Each house payment includes principal and interest, property tax, insurance and FHA's monthly mortgage insurance, with the 1.75% upfront premium financed into the loan.
A worked example: three ways to buy on $4,800
Alex earns $4,800 a month and has $300 in car and card payments. Here are three purchases on the same paycheck, each on FHA with 3.5% down:
| Single-family, alone | Duplex, renting the other unit for $1,500 | Single-family with a parent co-signing | |
|---|---|---|---|
| Qualifying income | $4,800.00 | $5,925.00 | $6,800.00 |
| Monthly debts | $300.00 | $300.00 | $500.00 |
| Highest FHA price | $282,000 | $341,000 | $417,000 |
| House payment | $2,246.85 | $2,774.72 | $3,186.99 |
Alone, the $282,000 payment is $1,615.87 in principal and interest, $223.25 in property tax, $283.00 in insurance and $124.73 in mortgage insurance, which is 46.8% of Alex's income.
On a duplex, Alex lives in one unit and rents the other. FHA counts 75% of that $1,500 rent, or $1,125, as income, so qualifying income becomes $5,925. With insurance at $400 a month for two units, the price rises to $341,000, and the tenant's rent covers a big share of the payment. The house hacking calculator runs the numbers on a specific building.
With a co-signer, a parent earning $2,000 a month with $200 in debts adds both to the application. The co-signer doesn't live in the home or go on the title, and the price climbs to $417,000.
How each program treats one income
- FHA: 46.9% housing and 56.9% total with an automated approval, from a 580 score at 3.5% down.
- Conventional: Total debts up to 50% with an automated approval, from a 620 score with 3% down on a single-family home for first-time buyers.
- VA: Residual income sets the bar, and a household of one has the lowest minimum in VA's table, $441 a month in Florida's region on loans of $80,000 and up. A single veteran often clears it easily.
- USDA: 29% housing and 41% total ratios on $0 down. Because USDA caps household income, a one-income household is more often under the limit than a two-income one.
More ways to make one paycheck go further
- Use FHA 100% financing. A down payment assistance second covers the 3.5% down, from a 580 score, and Florida Housing Finance Corporation runs several of these programs. The Hometown Heroes page covers one of them.
- Ask the seller to pay closing costs. On FHA, the seller can pay up to 6% of the price toward your costs.
- Clear a car payment. With the total ratio as the limit, every $100 of monthly debt you pay off adds about $14,000 to an FHA price.
- Count every income you have. Overtime, a part-time second job, child support and alimony all count once they have the history the program asks for.
Enter your paycheck and debts in the QualRate calculator to see your price on all four programs, then try the duplex and co-signer versions. Call AAA Capital Funding at 888-601-8344, and we'll show you which route takes your one income the furthest.