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One rule of thumb when buying a home is to not spend more than three times your annual salary. If you earn $60K a year, that means you can afford to spend around $180,000 on a house, maybe a bit more if you have little or no other debts. However, depending on where you want to live, interest rates, and how much debt you’re carrying, that figure could change significantly.

This article looks at the factors you should consider when deciding how much house you can afford. Following this guide is the best way to get a realistic idea of how much house you really can get on a salary of $60,000.

What Kind of House Can I Afford With $60K a Year?

A salary of $60,000 is below the national median income of $74,580, according to Census data. While you will probably qualify for a mortgage in most states with that salary, it won’t buy you much of a home in areas with a high cost of living, such as New York or California.

How much house you can afford on $60,000 a year depends on how affordable your city is, your debt-to-income ratio (DTI), interest rates, and how much you can save for a down payment.


💡 Quick Tip: Buying a home shouldn’t be aggravating. SoFi’s online mortgage application is quick and simple, with dedicated Mortgage Loan Officers to guide you through the process.

Your Debt-to-Income Ratio

Another rule of thumb is the 28/36 rule. This rule holds that you should spend no more than 28 percent of your gross income on overall housing costs (including mortgage, taxes, and insurance) and no more than 36 percent on all debt combined (mortgage, credit card bills, car payment, student loan, etc.).

So, if you earn $60,000, your housing costs should be less than $16,800, or $1,400 a month, and your debt and housing costs should not exceed $21,600, or $1,800 a month. This calculation reflects your DTI ratio. To get a sense of how much you might be able to borrow and still walk away under your 28/36 maximums, try putting your numbers into a home affordability calculator.

Lenders look at how much debt you have when they determine if you qualify for a mortgage. From the lender’s point of view, the less you are paying each month in debt, the less likely you are to default on your mortgage loan, and the better the loan terms they can extend. A higher ratio means you are using more of your income to cover existing debt.

Your Down Payment

How much do you have saved up for a down payment? Your down payment directly affects how much you will have to pay each month in principal and interest. According to the National Association of Realtors®, the average first-time buyer pays about 6 percent of the home price for their down payment, while repeat buyers put down 17 percent. The more you put down, the lower your monthly housing cost. Whatever your salary, you can borrow more and buy a more costly house if your monthly payments are less.

Home Affordability

How affordability is a measure of how affordable homes are in a certain area. Some areas have a higher cost of living, higher average house prices, and higher property taxes. For example, New Jersey has high property taxes, but South Carolina and Mississippi tend to have low property taxes. It also costs more to buy necessities in New Jersey than South Carolina or Mississippi.

Your credit score is another factor to consider in the home affordability equation. A higher credit score will mean you should qualify for a lower interest rate with a lender and better loan terms. Better loan terms mean (you guessed it) lower monthly payments, which might give you the bandwidth to borrow a little more.

How to Afford More House with Down Payment Assistance

Federal, state, and local government, private entities, and charitable organizations offer down payment assistance in the form of low-rate loans, cash grants, tax credits, and interest rate reductions. Some of the programs are offered to specific professionals, such as nurses or teachers, first-time homebuyers, and some programs are neighborhood-based.

Property tax abatement and federal tax credits to first-time buyers are applied automatically. However, the U.S. Department of Housing and Urban Development (HUD) maintains a semi-complete list of programs listed by state, county, and city. Note that applying for down payment assistance can add weeks or months to the homebuying process.

Here are typical down payments for various types of mortgages. Learn more by visiting a home loan help center.

•   Conventional mortgages require a down payment that can be as low as 3%.

•   FHA loans backed by the Federal Housing Administration require 3.5% down.

•   VA mortgages from the U.S. Department of Veterans Affairs require 0% down.

•   United States Department of Agriculture (USDA) loans offer loans to people in rural areas with no down payment.

Home Affordability Examples

Below are some hypothetical examples for buyers who make $60,000 a year with different savings for a down payment and monthly debt payments. The interest rate is 7%, and property tax rates are assumed to be average.

The Saver with a Down Payment

Gross annual income: $60,000
Amount of money for a down payment: $12,000
Monthly debt: $250
Property taxes: 1.12%

SoFi estimates that you can afford a home that costs $120,000. Bear in mind that you can expect to pay closing costs of around $4,800 in addition to the monthly charges below. Here is a breakdown of the costs:

Home Loan: $108,000
Down Payment: $12,000
Total Monthly Payments $953

•   Principal and Interest: $719

•   Property Taxes: $113

•   Private Mortgage Insurance: $90

•   Homeowners Insurance: $31

The Buyer with A Bigger Down Payment and Some Debt

Gross annual income: $60,000
Amount of money for a down payment: $25,000
Monthly debt: $300
Property taxes: 1.12%

In this scenario, you might comfortably afford a home that costs $250,000 (again, closing costs would come into play). Here is a breakdown:

Home Loan: $225,000
Down Payment: $25,000
Total Monthly Payments $1,615

•   Principal and Interest: $1,127

•   Property Taxes: $234

•   Private Mortgage Insurance: $66

•   Homeowners Insurance: $71


💡 Quick Tip: Don’t have a lot of cash on hand for a down payment? The minimum down payment for an FHA mortgage loan is as low as 3.5%.

How to Calculate How Much House You Can Afford

Keeping a budget to track your monthly expenditures is the first step to calculating how much house you can afford. Once you know how much you are spending each month on food, entertainment, your car, clothing, and utilities, you can add up these expenses and subtract them from your monthly income (don’t include rent here). What you have left is the amount you can afford to spend on housing expenses.

If you spend no more than 25 to 28% of your monthly income on housing, and your monthly income is $5,000, you can afford to spend $1,400 on mortgage and housing expenses.

You can also try putting different numbers into a mortgage calculator to see how different combinations of down payment amount or home cost affect monthly payments.

How Your Monthly Payment Affects Your Price Range

Your monthly payment is made up of principal and interest. If you can afford to pay more each month, you can afford a bigger house. That is, provided you don’t have too much debt. However, if you can, coming up with a bigger down payment in the beginning will likely reduce the interest rate offered by your lender and your monthly payments. You should feel comfortable with the cost of your monthly housing expenses going into a home purchase, but if your earnings or credit score increase notably after a few years, you can always look at a mortgage refinance.


💡 Quick Tip: Backed by the Federal Housing Administration (FHA), FHA loans provide those with a fair credit score the opportunity to buy a home. They’re a great option for first-time homebuyers.

Types of Home Loans Available to $60K Households

Conventional loans, FHA loans, USDA, and VA loans are the common loans available.

•   Conventional loans. These are the most common. They typically require a credit score of at least 620. Some will allow a down payment as low as 3 percent, but that will mean your monthly payments will be higher because you will have to borrow more.

•   FHA loans. FHA loans provide a percentage of the cost of a home depending on the buyer’s credit score. Home buyers with a credit score over 580 can borrow up to 96.5 percent of a home’s value. Home buyers whose credit scores are between 500 to 579 can qualify for a loan as long as they have a 10 percent down payment.

•   USDA: These loans serve borrowers earning below a certain income level who want to buy homes in designated rural areas.

•   VA: VA loans require no down payment and are offered to qualified military service members, veterans, and their spouses.

The Takeaway

The 28/36 rule holds that if you earn $60k and don’t pay too much to cover your debt each month, you can afford housing expenses of $1,400 a month. Another rule of thumb suggests you could afford a home worth $180,000, or three times your salary.

When calculating how much a lender might extend to you depends on your debt-to-income ratio, the cost of living and property taxes in the area you want to live, interest rates, and how much you have saved for a down payment.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Is $60K a good salary for a single person?

A salary of $60,000 is below the national median income which was $74,580 in 2022, according to Census data, the national median income was. On this income, you might struggle to buy a home in areas with a high cost of living unless you have a large down payment.

What is a comfortable income for a single person?

Average monthly expenses for one person in 2022 totaled $3,693, or $44,312 annually, according to the U.S. Bureau of Labor, so earning more than this amount would be a comfortable income as long as the cost of living where you live isn’t significantly above average, which varies widely among the states. But what any individual considers comfortable will depend on their spending habits.

What is a liveable wage in 2023?

A liveable wage, according to the Massachusetts Institute of Technology, was $104,07 per year before taxes in 2022. This for a family of four or two working adults with two children.

What salary is considered rich for a single person?

An income of $540,009 per year puts a person in the top 1% earnings category, according to the most recent IRS data.

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Photo credit: iStock/Sundry Photography

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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One rule of thumb is that the cost of your home should not exceed three times your income. On a salary of $70k, that would be $210,000. This is only one way to estimate your budget, however, and it assumes that you don’t have a lot of other debts. The truth is that how much house you can afford depends on many factors, so let’s take a look at them.

If I Make $70,000 a Year, How Much House Can I Afford?

“How much house can I afford if I make $70,000 a year” is a question with no single right answer. A second popular guideline for knowing how much house your budget can bear is the 28/36 rule, which stipulates spending no more than 28 percent of your salary on overall housing costs, and no more than 36 percent on all of your debts, including housing costs.

If you follow the 28/36 rule, your housing costs should be less than $1,633 a month, and your debt and housing costs should not exceed $2,100 a month. But how much house that will buy depends on where you live and your existing debt level.


💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Your Debt-to-Income Ratio

Lenders look at various things when they qualify you for a loan, but your debt-to-income (DTI) ratio is definitely one of them. This ratio is the amount of income you have relative to the amount of payments you make each month to cover your debt.

A higher ratio means you are using more of your income to cover existing debt, which means, from the lender’s point of view, you will have less cash to pay for your home loan each month. Therefore, a lower debt-to-income ratio, under 36 percent ideally, is better and will likely give you better mortgage terms from a lender.

Your Down Payment

Conventional lenders require a down payment on a home. The amount depends on lender requirements and the borrower’s financial situation. According to the National Association of Realtors®, the average first-time buyer pays about 8% while repeat buyers put down 19%.

The higher your down payment, the lower your monthly housing costs. The interest rate will also affect your monthly costs. You can use a mortgage calculator to see how different down payments affect your loan.

Home Affordability

Depending on the location, homes can be more affordable or less affordable. As noted above, the local housing market, the cost of living, your income, and current interest are all factors affecting home affordability. Remember that if your interest rate feels high, you can consider a mortgage refinance if rates drop and you plan to stay in the home long-term.

House Prices

House prices vary. You might be selling a house where the prices are low and wanting to buy a home where prices are high. If that’s the case, you might have to settle for a much smaller home.

Cost of Living

The cost of living varies depending on where you live. In areas where the cost of living is cheaper – the southern states tend to have lower property taxes and a lower cost of living – you will spend less on necessities and have more money to put towards your monthly home expenses. If you are moving from New York to South Carolina, your household expenses will be much lower in South Carolina, so you might be able to afford a more costly house.

Property Taxes

Your property taxes are based on the assessed value of a property. They vary widely and significantly increase the costs of homeownership in areas where they are high.

How to Afford More House With Down Payment Assistance

The hardest part of buying a home is, arguably, coming up with the down payment. Some state and local governments offer down payment assistance programs to help with the down payment and closing costs for qualified borrowers. Usually for first-time homebuyers, these programs are often low-interest loans or grants, or they might help with closing costs.

If you have a $200,000 home mortgage loan, the closing cost could be around 5 percent, or $4,000. A down payment assistance program might help with those costs, allowing you to use more of your savings for the down payment. You can apply for assistance using a formal application to your state or local government.

Home Affordability Examples

Below are some hypothetical examples for buyers who make $70,000 a year with different savings for a down payment and with various levels of debt. The interest rates are assumed to be 7%, and property tax rates are assumed to be average (1.12%). A buyer in these scenarios would need an additional $4,000 to $6,000 on hand for closing costs.

Example #1: Saver with a Down Payment

Gross annual income: $70,000

Down payment: $21,000

Monthly debt: $250

Home budget: $210,000
Monthly mortgage payment: $1,667

Total Monthly Payments $1,667

•   Principal and Interest: $1,257

•   Property Taxes: $197

•   Private Mortgage Insurance: $158

•   Homeowners Insurance: $55

Example #2: Saver with A Down Payment … and Debt

Gross annual income: $70,000

Savings for down payment and closing: $12,000

Monthly debt: $500

Home budget: $120,000

Total Monthly Payments $953

•   Principal and Interest: $719

•   Property Taxes: $113

•   Private Mortgage Insurance: $90

•   Homeowners Insurance: $31

Using a home affordability calculator, you can plug in different amounts for down payments to get a sense of what you can afford.

How to Calculate How Much House You Can Afford

Rather than relying on a rule of thumb, first keep a budget to track your monthly expenditures, not including any rent. Your expenses should include credit card debt, student loans, other mortgages, etc. Next, decide how much you can put down as a down payment.

Plug your gross annual salary and other numbers into an affordability calculator along with the average interest rate and the property taxes in the area that you want to live. This should give you a general idea of how much home you can afford.

How Your Monthly Payment Affects Your Price Range

Your monthly payment is made up of principal and interest. The interest is determined by the lender, and the higher the rate, the higher your monthly payment. If your down payment is large and you get a good interest rate because you have good credit, you might be able to afford a more expensive house. But you still have to save the down payment.

Types of Home Loans Available to $70K Households

Conventional, FHA, USDA, and VA are the most common home loan options available:

•   Conventional These loans are the most common. They typically require a credit score of at least 620. Some lenders will require a down payment as low as 3 percent, but that will mean your monthly payments will be higher because you will borrow more.

•   FHA Federal Housing Administration loans are a good option if you have a credit score between 500 and 579. These loans require a 10 percent down payment, but if you have a score of 580 or higher, 3.5 percent is accepted.

•   USDA United States Department of Agriculture loans serve low-income borrowers in designated rural areas and require no down payment.

•   VA U.S. Department of Veterans Affairs loans offer a no-down-payment option.

💡 Quick Tip: Active duty service members who have served for at least 90 consecutive days are eligible for a VA loan. But so are many veterans, surviving spouses, and National Guard and Reserves members. It’s worth exploring with an online VA loan application because the low interest rates and other advantages of this loan can’t be beat.†

The Takeaway

Your salary is just one factor determining how much house you can afford. You also have to consider your monthly expenses, how much debt you have, the property taxes in the area where you want to live, current interest rates, and how much you can afford as a down payment. The good news is that if you earn $70,000, most estimates show that you can afford to spend around $2,100 a month on housing expenses so a home should be within reach.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Is $70K a good salary for a single person?

A salary of $70,000 is significantly higher than the national median income for a single person in 2022, which was $51,930 for men and $40,200 for women, according to Census data. It’s a good salary, but it does make buying a home harder when the interest rates are high, particularly if you want to live in an area with a high cost of living.

What is a comfortable income for a single person?

A comfortable income for a single person is one that provides a good standard of living where the person lives. The cost of living can vary significantly between and within states. The Massachusetts Institute of Technology Living Wage Calculator is a good place to look at what equates to a livable wage in your specific county.

What is a liveable wage in 2023?

According to the Massachusetts Institute of Technology, the living wage in the United States was $104,07 per year before taxes per year in 2022 for a family of four (two working adults with two children).

What salary is considered rich for a single person?

According to Internal Revenue Service data, an income of $540,009 per year puts a person in the top 1% earnings category.

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Photo credit: iStock/svetikd

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

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Making $160,000 a year could put you on track to purchase a home for around $480,000. But how much you earn is just one factor lenders look at when determining how much you can borrow for a home mortgage loan. Let’s take a closer look at calculating home affordability and other key considerations to answer your question, “If I make $160,000 a year, how much house can I afford?”

What Kind of House Can I Afford With $160K a Year?

The type of house you can afford is determined in part by location. Your money is likely to go further in a rural area than an urban center, for instance. It’s important to consider the cost of living by state, local property taxes, and insurance requirements when browsing options. Whether you’re looking for a condo, townhouse, or a single-family home will affect how much house you get as well.

What kind of home mortgage loan you can secure will also depend on your personal financial situation — not just income alone.

Recommended: Best Affordable Places to Live by State

Understanding Debt-to-Income Ratio

Lenders consider your existing debt to determine your ability to pay back a home loan. Typically, this is performed by calculating a borrower’s debt-to-income (DTI) ratio, or the percentage of gross income that goes toward debt payments.

To calculate your DTI ratio, simply divide all your monthly debts (student loans, auto loans, etc.) by your gross monthly income. Generally, lenders view a DTI ratio of 36% or less as favorable. However, buyers may qualify for certain loans with a higher DTI.

If you make $160,000 a year, your gross monthly income is $13,333. Thus, you’ll need to keep monthly debt payments below $4,800 to maintain a DTI ratio of 36% or less.

Lenders often calculate DTI using the 28/36 rule, which recommends that borrowers limit housing costs to 28% of gross monthly income and all debts to 36%. On a $160,000 salary, the 28/36 rule comes out to $3,733 for housing costs and $4,800 for total monthly debt payments.

💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.

How to Factor in Your Down Payment

The lender and loan type will determine how much you need to put toward a down payment. But putting more money down upfront can expand your homebuying budget. A larger down payment also reduces the amount you need to borrow. This translates to lower monthly payments and less interest paid over the life of the loan.

When figuring out how much you can afford for a down payment, it’s important to reserve funds for closing costs, plus any necessary home repairs.

Recommended: How to Lower Down Payment Requirements in 2024

Factors That Affect Home Affordability

There are multiple factors besides income and down payment amount that affect home affordability. When assessing your ability to repay a mortgage, lenders will look at your credit score alongside your DTI ratio. Generally, higher credit scores translate to a lower interest rate, since there’s less risk to the lender. The minimum credit score varies between the different types of mortgage loans.

Mortgage interest rates are only determined in part by a borrower’s credit history. Economic conditions impact prevailing mortgage rates across the housing market. For 2024, the National Association of Realtors® estimates that mortgage interest rates will average 6.3%.

Recommended: Tips to Qualify for a Mortgage

How to Afford More House With Down Payment Assistance

Saving up money for a down payment can be a barrier to homeownership. Buyers struggling to make a down payment can explore assistance programs to make home buying a reality. Down payment assistance comes in several forms, including grants, low-interest loans, and forgivable loans. Down payment assistance programs are offered by the federal government, state and local government, and nonprofit organizations.

Note that assistance typically comes with eligibility and property requirements. Often, assistance is reserved for low-to-moderate income buyers or first-time homebuyers. To be eligible, properties typically must be primary residences, and buyers may need to occupy the home for a set period of time.

Home Affordability Examples

Here are some home affordability examples for borrowers with different DTI ratios and down payments.

According to the 28/36 rule, a borrower earning $160,000 a year can afford a maximum monthly mortgage payment of up to $3,733 and total monthly debt payments of up to $4,800. Using this guideline, if a borrower’s monthly debt is $800 and they have set aside $30,000 for a down payment, a home priced around $483,000 could be in the budget (assuming 7% interest and average property taxes).

Some homebuyers may prefer the flexibility of the 35/45 rule, which would recommend a maximum of $4,667 towards housing costs and $6,000 to pay for all monthly debt. If a lender is flexible as well, the home budget on a $160,000 salary in this scenario (assuming debt and down payment remain constant) would be $589,000.

💡 Quick Tip: Lowering your monthly payments with a mortgage refinance from SoFi can help you find money to pay down other debt, build your rainy-day fund, or put more into your 401(k).

How to Calculate How Much House You Can Afford

To answer, “I make $160,000 a year, how much house can I afford?”, you’ll need to gather some information to crunch the numbers. Namely, you’ll need to tally up your total debt and available savings for a down payment. You’ll also need to estimate your interest rate, as a slight change in interest rate can have a significant impact on monthly payment.

Rather than doing the math yourself with the 28/36 or 35/45 rules, using a home affordability calculator makes it easy to see how much house you can afford in different scenarios.

How Your Monthly Payment Affects Your Price Range

Borrowers repay their mortgage via monthly payments for a fixed term — usually 15 or 30 years. The monthly payment amount is used to calculate your DTI ratio, and ultimately, how much house you can afford.

Mortgage payments consist of four components: principal, interest, taxes, and insurance. The loan principal (the amount you borrow) and the interest paid on the loan can be estimated with a mortgage calculator.

Meanwhile, the property taxes and insurance costs can range considerably between homes based on their location and assessed value. For instance, buying a home in a flood zone may require flood insurance.

If you put less than 20% down on a house, you’ll need to pay private mortgage insurance (PMI), which increases your monthly payment. If you want to see how different home prices, down payments, and other variables affect your mortgage, try using a mortgage calculator.

Types of Home Loans Available to $160K Households

Buyers making $160,000 a year have several home loan options to choose from. The requirements for credit score, down payment, and DTI ratio vary by loan type. Here are some to consider:

•   Conventional loans The most common loan type, these loans usually require a 620 credit score and may offer down payments as low as 3%.

•   FHA loans Backed by the Federal Housing Administration, they offer flexible borrower requirements, including a down payment of 3.5% with a minimum credit score of 580.

•   USDA loans Borrowers in United States Department of Agriculture-designated rural areas can get a home loan with no down payment required if they meet income eligibility.

•   VA loans Active-duty service members, veterans, reservists, and surviving spouses can get a low-interest loan from the U.S. Department of Veterans Affairs with no down payment required.

To learn more about mortgage options and the homebuying process, check out a home loan help center.

The Takeaway

If you earn $160,000 a year, how much house you can afford depends on your personal financial situation and where you’re looking to buy. Besides your income, you’ll need to know your estimated down payment and total debt to calculate home affordability. Once you have a good sense of your budget, it’s time to start shopping for a house — and a home loan.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Is $160K a good salary for a single person?

A $160,000 salary for a single person is well over double the national average wage in 2022 of $63,795.

What is a comfortable income for a single person?

A comfortable income for a single person should exceed the local cost of living to allow sufficient budget for savings and discretionary spending.

What is a liveable wage in 2024?

For Americans in most states, a livable wage is between $15 and $20 an hour. However, the cost of living can vary considerably by location, and in cities in California, New Jersey, New York, and Virginia, a livable wage is considerably higher.

What salary is considered rich for a single person?

A single person with a salary over $652,657 would be considered in the top 1% of earners in the U.S.

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Photo credit: iStock/Jacob Wackerhausen

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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With a $150,000 salary, you could afford a home priced around $415,000-$430,000, assuming you have $20,000 saved up for a down payment and are carrying some monthly debt already, such as a car payment or student loan. This also assumes an interest rate of 7%.

As you can see, your homebuying budget depends on more than just your salary, including your personal financial situation, the mortgage rate you qualify for, and the loan type. Here’s a closer look at the key considerations that impact home affordability, plus guidance on calculating how much house you can afford.

What Kind of House Can I Afford With $150K a Year?

You may have heard the age-old adage: location, location, location. The type of house you can afford on a $150,000 salary will depend on where you’re looking to buy. Besides differences in cost of living by state, prices can also vary at the neighborhood level.

Your personal finances — not just income — matter, too. Lenders will assess your credit score, debt, assets, and ability to make a down payment to determine what kind of home mortgage loan you qualify for, which helps determine your homebuying budget.

Recommended: Best Affordable Places to Live in the U.S.

Understanding Debt-to-Income Ratio

Your debt-to-income (DTI) ratio represents the percentage of your gross income that goes toward debt payments. It’s calculated by dividing all your monthly debts — such as student loans and credit card debt — by your gross monthly income.

Lenders consider a borrower’s DTI ratio to determine whether they qualify for a home loan and at what interest rate. A DTI ratio of 36% or less is recommended for homeowners, though the maximum DTI ratio varies from lender to lender and between mortgage types.

If earning $150,000 a year, your gross monthly income is $12,500. To have a DTI ratio of 36% or less, your total debts, including the mortgage, would need to be at or below $4,500.

Some lenders may assess both your front-end and back-end DTI ratios, using what is known as the 28/36 rule. In this scenario, lenders usually look for housing costs to top out at 28%. This comes out to $3,500 in monthly housing costs on a $150,000 salary.

Meanwhile, back-end DTI covers all recurring debt payments. Lenders typically prefer a back-end ratio of 36% or less.

💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.

How to Factor in Your Down Payment

The required down payment amount depends on the type of home loan. But how much you can put toward a down payment impacts how much house you can afford. The more you can put down upfront, the less you’ll need to borrow, which means lower monthly payments and less interest paid over time. Having a larger amount saved for a down payment could also increase your housebuying budget.

That being said, a down payment shouldn’t wipe out your savings. It’s important to account for home repairs and ongoing housing costs when deciding how much money to put down.

Recommended: Do You Still Need to Put a 20% Down Payment on a House?

Factors That Affect Home Affordability

There are several factors that affect home affordability in addition to DTI ratio and down payment. Lenders will consider a borrower’s credit score to determine their ability to repay a mortgage loan. The higher your credit score, the better your chance of qualifying for a lower interest rate and favorable loan terms.

How you plan to finance your home matters, too. The minimum credit score, down payment requirement, and DTI ratio all vary by home loan type.

Besides your personal finances, prevailing mortgage rates have a major effect on home affordability. Higher interest rates increase monthly payments and the overall cost of borrowing. The National Association of Realtors® estimates that mortgage interest rates will average 6.3% in 2024. This represents a significant rate drop from 2023 when interest rates exceeded 7% for the majority of the year.

Home Affordability Examples

Here’s a look at a couple home affordability examples that show how the amount of debt you carry could affect your home affordability budget.

As noted above, according to the 28/36 rule, you can afford a maximum monthly mortgage payment of up to $3,500 and total monthly debt payments of up to $4,500 if earning $150,000 a year.

A borrower with $1,000 in monthly debt and $50,000 saved toward a down payment could afford a $500,000 house, or a monthly payment of $3,391, assuming a 5% interest rate and average property taxes and insurance costs.

Meanwhile, a borrower with $2,000 in debt could only afford a monthly mortgage payment of $2,500. In this scenario, a borrower could afford a house of nearly $400,000 with a $50,000 down payment and holding other variables constant.

How to Afford More House With Down Payment Assistance

According to the National Association of Realtors®, the average down payment in 2023 was 8% for first-time homebuyers and 19% for repeat buyers. This can translate to a hefty sum, especially in more expensive housing markets. If you’re facing challenges coming up with a down payment, you’re not alone. Buyers can consider down payment assistance programs to help get a mortgage.

Down payment assistance programs are offered by the federal government, state and local government, and nonprofit organizations. Assistance is available in the form of grants, low-interest loans, or forgivable loans to help buyers make a down payment.

This assistance typically comes with eligibility requirements for the homebuyer and property. For example, applicants may need to meet household income limits or be a first-time homebuyer to qualify. Assistance programs are usually intended for primary residences, and buyers can be required to live in the home for a minimum timeframe.

Recommended: Tips to Qualify for a Mortgage

How to Calculate How Much House You Can Afford

Still wondering, “I make $150,000 a year, how much house can I afford?” You’ll need your total monthly debt, estimated down payment, and interest rate to calculate how much house you can afford.

Rather than crunching the numbers yourself with the 28/36 rule, use a home affordability calculator or mortgage calculator to easily experiment with different scenarios. Prospective homebuyers can also get preapproved for a home loan to get an idea of how much they can afford. Getting preapproved also shows sellers that you’re a serious buyer and provides some assurance that your financing won’t fall through.

How Your Monthly Payment Affects Your Price Range

Lenders consider your ability to afford monthly mortgage payments when determining how much you qualify to borrow. Mortgage payments consist of four components: principal, interest, taxes, and insurance.

The principal refers to the loan balance, while the interest is the amount (expressed as a percentage) that’s charged on the principal by the lender for issuing the loan. Real estate and property taxes can be lumped into monthly mortgage payments. These costs vary considerably by the property’s location and assessed value, ultimately impacting your home price range.

Home insurance that protects the property from fire, theft, floods, or other disasters is sometimes included in a monthly payment. And if you put less than 20% down on a house, you’ll have to pay private mortgage insurance (PMI), which increases your monthly payment. However, it’s possible to get out of PMI down the line when you hit 20% equity or with a mortgage refinance.

💡 Quick Tip: Lowering your monthly payments with a mortgage refinance from SoFi can help you find money to pay down other debt, build your rainy-day fund, or put more into your 401(k).

Types of Home Loans Available to $150K Households

Households making $150,000 a year have multiple financing options. Qualifying for different types of mortgage loans depends on credit score, down payment, and other borrower characteristics. Here are some common home loan options for $150,000 households to consider:

•   Conventional loans: The most common type of mortgage, conventional home loans usually require a 620 credit score and may offer down payments as low as 3%.

•   FHA loans: This loan backed by the Federal Housing Administration offers competitive interest rates and a down payment of 3.5% for qualified first-time buyers with a credit score of at least 580.

•   United States Department of Agriculture loans: There’s typically no down payment or credit requirements, but borrowers must meet income eligibility and a property must be in a USDA-designated rural area.

•   VA loans: Active-duty service members, veterans, reservists, and surviving spouses can get a low-interest loan from the U.S. Department of Veterans Affairs with no down payment requirement.

Check out a home loan help center to dive deeper into mortgage basics and the homebuying process.

The Takeaway

If you make $150,000, how much house you can afford depends on several factors, including your DTI ratio, credit score, loan type, savings for a down payment, and location. After figuring out your personal homebuying budget, it’s time to start shopping for a home loan.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Is $150K a good salary for a single person?

A $150,000 salary is more than double the national average wage in 2022 of $63,795. Therefore, a single person making a $150,000 salary can likely afford a more expensive home than most.

What is a comfortable income for a single person?

Generally speaking, a comfortable income for a single person should exceed the cost of living in your area. For example, the annual cost of living in California is $53,082 versus just $39,657 in Alabama.

What is a liveable wage in 2024?

Americans in most states need to earn between $15 and $20 an hour for a liveable wage in 2024. However, a liveable wage in urban areas of states such as California, New Jersey, New York, and Virginia is considerably higher.

What salary is considered rich for a single person?

When surveyed, Americans report needing to earn about $483,000 to feel rich. In reality, though, a salary of $234,342 would put you in the top 5% of workers.

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Photo credit: iStock/zamrznutitonovi

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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An $80,000 annual salary would allow you to purchase a home priced up to around $300,000 — that is, if you follow the conventional guidance, which is that you spend no more than a third of your pretax income on housing costs. But there’s more (lots more) to it than that.

By just about any measure, earning $80,000 a year is a good salary. It’s about $5,000 higher than the U.S. median household income, per Census data. But depending on where you live and other aspects of your financial profile, earning a good salary doesn’t always translate into being able to afford a large house — or, in some expensive cities, any house at all.

So how can you tell where you stand? Let’s dig into the details.

What Kind of House Can I Afford With $80K a Year?

As noted above, one basic rule of thumb is to spend no more than about a third of your income on housing — and ideally even less. That means that if you earn $80,000 per year, you should spend about $26,000 per year on housing.

That translates to roughly $2,200 per month, which should cover not only your mortgage payment but also utilities, home insurance, and other housing-related expenses.

However, as you’ve probably noticed, this still isn’t a straightforward answer; the size of your monthly mortgage payment doesn’t directly translate to the overall cost of the house. Other factors like your interest rate, debt-to-income ratio, and the size of your down payment all factor in — so let’s take a closer look at those.


💡 Quick Tip: SoFi’s Lock and Look ⁺ feature allows you to lock in a low mortgage financing rate for 90 days while you search for the perfect place to call home.

What is Debt-to-income Ratio (DTI)?

Your debt-to-income ratio, or DTI, is a measure of how much money you pay toward your debts each month relative to how much free cash you have available. It’s determined by dividing the sum of your monthly liabilities (i.e., credit card bills and student loan payments) by your gross monthly income.

If you are already paying quite a bit toward debt every month, you’ll have less money to spend on housing. (For example, someone earning $80,000 a year who is already paying $1,400 per month toward debt can likely only afford a house priced around $200,000.)

The higher your DTI, the riskier you appear to mortgage lenders — which may drive up your interest rate and, therefore, your monthly payment. And above a certain DTI level (usually around 40%, but sometimes as high as 50%), a mortgage lender might disqualify you from borrowing entirely. That’s why it’s often a good idea for would-be homebuyers to drive down their overall debt before moving seriously into the housing market.

Factoring in Your Down Payment

Along with how much debt you have, lenders also consider how much money you’re ready to put down for your home up front — otherwise known as your down payment. Generally speaking, the larger your down payment, the more house you can afford, since having so much money saved up is a favorable factor for home lenders. (Even if you keep your budget modest, having a larger down payment can help you save money over time since the amount you’ll be borrowing will be proportionally smaller.)

How Down Payment Assistance Can Help

Saving up a down payment can be one of the most challenging parts of the home-buying process, especially for first-time homebuyers. Fortunately, down payment assistance programs can help buyers overcome this hurdle — though keep in mind that the assistance itself is often a loan, which also needs to be repaid over time. Often, the interest on such loans is very low, making it a more viable option for homebuyers already struggling to get their foot in the door.

You may also need to prove financial need in order to qualify for down payment assistance for your mortgage. For example, you may have to be at or below a certain income threshold or have less than a given amount of liquid assets at your disposal to be eligible for down payment assistance.

Down payment assistance is offered through local governments, federal government bodies, and some nonprofits. If the prospect of saving a substantial chunk of money is blocking you from the home you hope to afford, it’s worth shopping around to see what kind of assistance is available.

Other Factors That Affect Home Affordability

Along with your current level of debt and how much of a down payment you’ve saved up, other factors affect how much home you can afford — and how affordable your city is, for that matter.

On your end, factors like your credit score and credit history, along with your job history and security, may increase or decrease your eligibility for a home mortgage loan (and, if you qualify, affect your interest rate). And as far as the affordability of homes themselves, where you live has a major impact, along with the size, type, age, and repair level of the homes you’re shopping for.

How Your Monthly Payment Affects Your Price Range

As mentioned above, figuring out how much house you can afford is all about figuring out how much you can afford to spend on housing each month. The higher the monthly payment you can comfortably afford, the larger the overall mortgage you can afford, which means you may be able to buy a higher-priced home. That said, it’s important to keep in mind that your mortgage is just the beginning.

Along with all of your other existing expenses — like car payments, student loan bills, utilities, groceries, and gas — owning a home can also increase the amount you spend on home maintenance relevant to renting. That’s because, once you’re a homeowner, when something breaks in your house, it’s your responsibility to fix it.

Most homes come with a variety of maintenance issues that need to be addressed at some point after purchase; sometimes, appliances break. Just be sure you’re not putting yourself in a position where your monthly mortgage payment is so high, you won’t be able to afford the other expenses that come along with homeownership.

How to Calculate How Much House You Can Afford

Use a housing affordability calculator to determine how much house you can afford based on your income, your current debts owed, your credit score, the size of your down payment, and your expected interest rate. (You can get a better sense of what, exactly, your interest rate might be by chatting with an agent from your home lender; they’ll also be able to give you an idea, given your financial profile, of how much house you can afford.)

Types of Home Loans Available to $80K Households

Fortunately, many different types of mortgage loans are available to households making $80,000 per year. For example, if you’re a first-time buyer, you may qualify for an FHA loan from the Federal Housing Administration, which allows you to buy with lower down payments and closing costs as well as less-stringent credit requirements.

Veterans and their families might look into VA loans. The U.S. Department of Veterans Affairs makes it possible to purchase a home with no down payment at all if you’re qualified.

And, of course, conventional home loans from private lenders are also available to those earning $80,000 — or most any amount.


💡 Quick Tip: Active duty service members who have served for at least 90 consecutive days are eligible for a VA loan. But so are many veterans, surviving spouses, and National Guard and Reserves members. It’s worth exploring with an online VA loan application because the low interest rates and other advantages of this loan can’t be beat.†

The Takeaway

As a $80,000 earner, chances are you can afford to purchase property — but the specifics depend on a wide variety of factors including your other markers of financial health as well as where you’re trying to buy. Using an home affordability calculator is a smart way to start exploring what your budget will allow before you embark on a search for a home and a home mortgage loan.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Is $80K a good salary for a single person?

$80,000 is about $5,000 higher than the U.S. median household income, so many people would consider it very good for a single person. “Good” is always a relative term when it comes to salary; whether or not the amount you earn covers your expenses is a highly personal dynamic.

What is a comfortable income for a single person?

Comfortable depends on where you live and your personal habits. A single person in San Francisco would need about $55,000, while the same person living in Cincinnati, Ohio, could get by on around $32,000, according to MIT’s Living Wage Calculator.

What is a liveable wage in 2024?

Living wage calculations are dependent on where you live and the cost of living in that area — along with factors like the size of your family and how many people in your household are working. Living wage calculators exist online that can help you better determine the living wage in your area.

What salary is considered rich for a single person?

People have so many different definitions of “rich.” If you’re settled in an area with a low cost of living, $100,000 might make you rich; in expensive cities, even a six-figure salary may only feel middle-class.

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Photo credit: iStock/PIKSEL

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

⁺Lock and Look program: Terms and conditions apply. Applies to conventional purchase loans only. Rate will lock for 91 calendar days at the time of preapproval. An executed purchase contract is required within 60 days of your initial rate lock. If current market pricing improves by 0.25 percentage points or more from the original locked rate, you may request your loan officer to review your loan application to determine if you qualify for a one-time float down. SoFi reserves the right to change or terminate this offer at any time with or without notice to you.

^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOHL0124058

Read more