There's no single income number for Florida. The income you need comes from the price of the home and the debts you already carry, run through a ratio the lender is allowed to use. Lenders measure everything against your gross monthly income, which is your pay before taxes and deductions. On FHA, the loan most first-time Florida buyers use, the full house payment can reach about 46.9% of that income with an automated approval, and all your debts together can reach about 56.9%.
The ratios each program allows
| Program | Housing payment limit | Total debt limit |
|---|---|---|
| FHA, automated approval | About 46.9% | About 56.9% |
| Conventional, automated approval | No separate cap | Up to 50% |
| VA | No separate cap | 41% as a guide, higher with strong residual income |
| USDA | 29% | 41% |
The house payment means the whole thing: principal, interest, property taxes, homeowners insurance and mortgage insurance, plus HOA dues if the home has them. Other debts are the monthly payments on your credit report, such as car loans, student loans, card minimums and child support. Rent you're leaving, utilities, phone and car insurance don't count.
Income needed by home price
These figures use FHA with 3.5% down at a 5.75% rate on a 30-year fixed, property taxes at about 0.90% of the price a year and homeowners insurance of $283 a month. The income column is the full payment divided by 0.469.
| Home price | Full monthly payment | Monthly income needed | Yearly income needed |
|---|---|---|---|
| $250,000 | $2,013.58 | $4,293.35 | $51,520 |
| $300,000 | $2,359.70 | $5,031.34 | $60,376 |
| $350,000 | $2,705.81 | $5,769.32 | $69,232 |
| $400,000 | $3,051.93 | $6,507.31 | $78,088 |
| $450,000 | $3,398.04 | $7,245.29 | $86,943 |
Take the $300,000 row. The base loan is $289,500, and the 1.75% upfront premium brings it to $294,566.25. Principal and interest come to $1,719.01, FHA's monthly mortgage insurance $132.69, taxes $225.00 and insurance $283.00, for $2,359.70. Divide by 0.469 and the buyer needs $5,031.34 a month.
When your other debts set the bar
The table assumes light debts. Once your other monthly payments pass about 10% of your income, FHA's 56.9% total limit, not the 46.9% housing limit, decides the income you need. With $700 a month of car, card and student loan payments, the $300,000 home needs ($2,359.70 + $700) ÷ 0.569 = $5,377.33 a month, or $64,528 a year. That's $345.99 a month more income than the same home with light debts. Paying off one small balance before you apply can close that kind of gap faster than a raise.
Ways to reach the income you need
- Two incomes. Two buyers earning $36,000 each bring $72,000 a year, enough for the $350,000 row.
- A co-signer. A parent or grandparent's income counts with yours on FHA, and they don't go on the title or live in the home. Non-taxable income such as SSI is grossed up 15% for FHA, so $1,400 a month of SSI counts as $1,610. See the co-signer calculator.
- Overtime, commissions and part-time pay. With a steady two-year history, lenders count it, and every dollar of it adds to your gross income.
- A duplex. On a 2 to 4 unit home you live in, 75% of the other units' rent counts as income.
- A price a notch lower. Each $50,000 off the price trims about $346 from the payment in the table above, and about $738 from the monthly income needed.
Cash is a separate question from income. FHA 100% financing covers the 3.5% down payment with an assistance second, and the seller can pay up to 6% of the price toward closing costs, so a buyer with the income but little savings can still buy.
Enter your income and debts in the home affordability calculator to see your price range on every program. When you want those numbers confirmed on your actual pay stubs, call AAA Capital Funding at 888-601-8344.