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On a salary of $50,000 per year, you can afford a house priced at around $128,000 with a monthly payment of $1,200 — that is, as long as you have relatively little debt already on your plate. However, not everyone earning $50,000 will see this number in response to a loan application. There are many more factors besides income and debt to take into account, such as:

•   Your down payment

•   The cost of taxes and insurance for the home you want

•   The interest rate

•   The type of loan you’re applying for

•   Your lender’s tolerance for debt levels

Each of these factors affects how much home you can afford on any salary, including one at $50,000.

What Kind of House Can I Afford With $50K a Year?

$50,000 is a solid salary, but there’s no denying today’s real estate market is tough. You’ll need to know the full picture of home affordability to get you into the house you want, starting with your debt-to-income (DTI) ratio.

Understanding Debt-to-income Ratio

Your DTI ratio may be one of your biggest challenges to home affordability. Each debt that you have a monthly payment for takes away from what you could be paying on a mortgage, lowering the mortgage amount that you can qualify for.

To calculate your DTI ratio, combine your monthly debt payments such as credit card debts, student loan payments, and car payments and then divide the total by your monthly income. This will give you a percentage (or ratio) of how much you’re spending on debt each month. Lenders look for 36% or less for most home mortgage loans.

For example, on a $50,000 annual salary and a $4,166 monthly income, your maximum DTI ratio of 36% would be $1,500. This is the maximum amount of debt lenders want to see on a $50,000 salary.


💡 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 Factor in Your Down Payment

A down payment increases how much home you’ll be able to qualify for. The more you’re able to put down, the more home you’ll be able to afford. Borrowers who put down more than 20% also avoid having to buy mortgage insurance. When you don’t have to pay mortgage insurance every month, you can qualify for a higher mortgage — but you do need to consider if putting down 20% is worth it to you. A mortgage calculator can help you see how much your down payment affects the mortgage you can qualify for.

Factors That Affect Home Affordability

In addition to the debt-to-income ratio and down payment, there are a handful of other variables that affect home affordability. These are:

•   Interest rates When your interest rate is lower, you’ll either have a lower monthly mortgage payment or qualify for a higher mortgage. With higher interest rates, you’ll have a higher monthly mortgage payment and/or qualify for a lower home purchase amount.

•   Credit history and score Your credit score affects what interest rate you’ll be able to get, which is a huge factor in determining your monthly mortgage payment and home affordability.

•   Taxes and insurance Higher taxes, insurance, or homeowners association dues can bite into your house budget. Each of these factors has to be accounted for by your lender.

•   Loan type Different loan types have varying interest rates, down payments, credit requirements, and mortgage insurance requirements which can affect how much house you can afford.

•   Lender You may be able to find a lender that allows for a DTI ratio that is higher than the standard 36%. (Some lenders allow a DTI as high as 50%.)

•   Location Where you buy affects how much house you can afford. This is one area that you can’t control, unless you move. If you are considering this option, take a look at the best affordable places to live in the U.S.

Recommended: The Cost of Living by State

How to Afford More House With Down Payment Assistance

If you want to be able to afford a more costly house, you may want to look into a down payment assistance (DPA) program. These programs can help you with funding for a down payment on a mortgage. You can look for DPA programs with your state or local housing authority. Preference may be given to first-time homebuyers or lower-income families, but there are programs available for a wide variety of situations and incomes.

How to Calculate How Much House You Can Afford

If you want to know how much mortgage you’ll likely be able to qualify for, you’ll want to take a look at these guidelines.

The 28/36 Rule: Lenders look for home payments to be at or below 28% of your income. Total debt payments should be less than 36% of your income. These are the front-end and back-end ratios you may hear your mortgage lender talking about.

Front-end ratio (28%): At 28% or your income, a monthly housing payment from a monthly income of $4,166 should be no more than $1,166.

Back-end ratio (36%): To calculate the back-end, or debt-to-income ratio, add your debt together and divide it by your income. This includes the new mortgage payment. With monthly income at $4,166, your debts should be no more than $1,500 ($4,166*.36).

The 35/45 Rule: The 35/45 rule is a higher debt level your lender can elect to follow. It’s riskier for them and may come at a higher interest rate for you. This rule allows you housing payment to be 35% of your monthly income and 45% of your total debt-to-income ratio. With a monthly income of $4,166, the housing allowance (35% of your income) increases to $1,458 and the total monthly debt (45% of your income) increases to $1,875.

An easier way to calculate how much home you can afford is with a home affordability calculator.

Home Affordability Examples

Making $50,000 a year gives you around $4,166 to work with each month. Using the 36% debt-to-income ratio, you can have a maximum debt payments of $1,500 ($4,166 * .36). In the examples below, taxes ($2,500), insurance ($1,000), and interest rate (6%) remain the same for a 30-year loan term.

Example #1: High-debt Borrower
Monthly credit card debt: $200
Monthly car payment: $400
Student loan payment: $200
Total debt = $800

Down payment = $20,000

Maximum DTI ratio = $4,166 * .36 = $1,500
Maximum mortgage payment = $700 ($1,500 – $800)

Home budget = $88,107

Example #2: The Super Saver
Monthly credit card debt: $0
Monthly car payment: $200
Student loan payment: $0
Total debt = $200

Down payment: $20,000

Maximum DTI ratio = $4,166 * .36 = $1,500
Maximum mortgage payment = $1,300 ($1,500 – $200)

Home budget = $171,925

Recommended: Tips to Qualify for a Mortgage

How Your Monthly Payment Affects Your Price Range

Your monthly payment directly affects the mortgage you’re able to qualify for. The more monthly debts you have, the lower the mortgage you’ll be able to qualify for. That’s why it’s so important to take care of debts as soon as you can.

That’s also why it’s important to get the best interest rate you can. Shopping around for lenders and improving your credit score can both save you money and improve home affordability. A home loan help center is a good place to start the process of looking for a mortgage.

Types of Home Loans Available to $50K Households

How much home you can afford also comes down to the different types of mortgage loans. Here are some common options:

•   FHA loans If your credit isn’t ideal, you may be able to secure a Federal Housing Administration mortgage. Though FHA loans are costlier, you can still be considered with a credit score as low as 500. FHA mortgage insurance, however, makes them more expensive than their alternatives.

•   USDA loans If you’re in a rural area that is covered by United States Department of Agriculture loans, you’ll want to consider whether the low interest, no-down-loan will make sense for you.

•   Conventional loans Conventional financing offers the most competitive interest rates and terms for mortgage applicants who qualify.

•   VA loans If you have the option of financing with a U.S. Department of Veterans Affairs loan, with few exceptions, you’ll generally want to take it. It offers some of the most competitive rates, even for zero-down-payment loans. It also comes with no minimum credit score requirement, though the final say on whether or not you can get a loan with a low credit score is up to the individual lender.


💡 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%.1

The Takeaway

Your $50,000 salary is the first step in qualifying for the home mortgage loan you need to buy a house. To position yourself for the best possible borrowing scenario, consider paying down debt, working on your credit score, applying for down payment assistance, adding a co-borrower, or some combination of the above. With these moves, home affordability improves a great deal.

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.

FAQ

Is $50K a good salary for a single person?

A $50,000 salary is good in terms of covering the cost of living in many parts of the U.S. and with proper budgeting it can even put you on the path to affording to purchase your own home.

What is a comfortable income for a single person?

A comfortable income for a single person could be at or above the median income for a single person, which is $56,929 according to data from the U.S. Census.

What is a liveable wage in 2024?

Your living wage depends on your local region, number of working household members, and children. For a single person living in Arizona, the average living wage is about $37,000. If the same person moved to California, an average of more than $44,000 would be needed, according to the Massachusetts Institute of Technology’s Living Wage Calculator.

What salary is considered rich for a single person?

A salary of $234,342 would put you in the top 5% of wage earners in the United States.

Photo credit: iStock/Tirachard

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-criteria 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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On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you’re paying off, but also that you haven’t been able to save much for a down payment.

Of course, you’ll want to talk to a lender for your individual situation, which could qualify you for more (or less). If it sounds overwhelming, don’t worry. We’ll walk you through what it takes to qualify for a home, no matter what your income level is.

What Kind of House Can I Afford With $36K a Year?

At a $36,000 annual income, you may need some help affording a home in today’s market. You’ll need to eliminate debt and make sure you have a good credit score, as well as find programs and lenders that can help. In addition to income and debt, your lender will take into account:

•   Your down payment savings

•   What taxes and insurance will cost

•   What interest rate you qualify for

•   The type of loan you’re applying for

•   Whether or not they can let your debt run up to 50% of your income

Understanding Debt-to-income Ratio

Beyond interest rates, debt is your biggest enemy to home affordability. The more debt you have to pay on a monthly basis, the less you’re able to pay toward a mortgage. In other words, your $200 monthly credit card payment could cost you thousands on the purchase price of a home.

To understand the debt-to-income ratio (DTI), add all of your debts together, and then divide that number by your monthly income. Your lender calculates your DTI ratio to determine how much you can afford as a monthly payment on a mortgage. The guideline is 36%, but some lenders can go higher on a home mortgage loan.


💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple.

How to Factor in Your Down Payment

A down payment increases how much home you’ll be able to qualify for. The more you’re able to put down, the more home you’ll be able to afford.

You’ll also want to consider whether you can put down a deposit of more than 20% so you don’t have to buy mortgage insurance. This may help you qualify for a higher mortgage. Use a mortgage calculator to see how a down payment affects home affordability.

Factors That Affect Home Affordability

Home affordability goes beyond your down payment and DTI ratio. You also want to look at:

•   Interest rates When interest rates are high, borrowers qualify for a lower mortgage. When they’re low, it may be possible to qualify for a higher mortgage.

•   Credit history and score Your credit score is a reflection of your credit habits, and with a higher credit score, you’ll qualify for the best interest rates, giving you more buying power.

•   Taxes and insurance If you live in an area with higher taxes, insurance, or homeowners association dues, these will be taken into account by your lender. You’ll qualify for a lower mortgage amount when these numbers are high.

•   Loan type Depending on the type of loan you get, your interest rate, credit score, and down payment amount can affect how much house you can afford.

•   Lender Lenders have the final say when it comes to approving you for a mortgage. In special circumstances, you may be able to qualify for more than a 36% DTI ratio. Some lenders approve borrowers with a DTI ratio around 50%.

•   Location If you’re shopping in a state with a high cost of living, you’ll have a hard time qualifying for a mortgage no matter what your income level is. If you’re considering other areas, you may want to look at the best affordable places to live in the U.S.

How to Afford More House With Down Payment Assistance

Down payment assistance programs can help you qualify for a larger mortgage. These types of programs have money to help with down payment or closing costs. They are usually offered at the state or local level with both grant and second mortgage programs. They may limit participation to first-time homebuyers or borrowers with lower incomes, but you should still look into these programs and see if you can qualify.

Examples include CalHFA MyHome Assistance Program and the “Home Sweet Texas” Home Loan Program. You can look for programs in your own state, county, and city.

Recommended: Tips to Qualify for a Mortgage

How to Calculate How Much House You Can Afford

Knowing how much home you are likely to qualify for doesn’t have to be a mystery. While your lender may have flexibility, they generally follow these guidelines:

The 28/36 Rule: Lenders will look for housing payments (including mortgage, taxes, and insurance) to be more more than 28% of your income and total debt payments (including mortgage, car loan, student loan, etc.) to be less than 36% of your income.

The 35/45 Rule: Some lenders allow for higher debt levels. This rule says the housing payment can be up to 35% of your income and total debt to be 45%.

An easy way to calculate how much home you can afford is with a home affordability calculator.

Home Affordability Examples

On a $36,000 annual salary, you’ll have $3,000 each month for expenses. Using the 36% debt-to-income ratio, you can have a maximum debt payments of $1,080 ($3,000 * .36). In the two examples below, taxes ($2,500), insurance ($1,000), and interest (6%) are the same for a 30-year loan term.

Example #1: Debt limits home affordability, even with large down payment

Monthly credit card debt: $100
Monthly car payment: $500
Student loan payment: $100
Total debt = $700

Down payment = $20,000

Maximum DTI ratio = $3,000 * .36 = $1,080
Maximum mortgage payment = $380 ($1,080 – $700)

Home budget on $36,000 salary = $34,733

Example #2: No down payment, but little debt

Monthly credit card debt: $0
Monthly car payment: $0
Student loan payment: $100
Total debt = $100

Down payment: $0

Maximum DTI ratio = $3,000 * .36 = $1,080
Maximum mortgage payment = $980 ($1,080 – $100)

Home budget on $36,000 salary = $96,314

How Your Monthly Payment Affects Your Price Range

The amount you’re able to pay toward a mortgage each month determines how much home you’ll be able to afford. Any monthly payments you have, such as debt, can take away from how much you’re able to pay for a mortgage. Conversely, how much income you earn in a month can improve how much mortgage you can qualify for.

Interest rates also play a huge role in your monthly payment. Higher interest rates mean you’ll qualify for a lower mortgage while lower interest rates improve home affordability. That’s why homeowners get a mortgage refinance when interest rates drop.

Recommended: Home Loan Help Center

Types of Home Loans Available to $36K Households

The different types of mortgage loans also affect home affordability. Some have a zero down payment option, flexible credit requirements, less expensive mortgage insurance, and varying interest rates. You’ll want to consult with your lender to determine what loan type of right for you.

•   FHA loans: Loans backed by the Federal Housing Administration are great for buyers with unique credit situations that can’t get approved for conventional financing. It can be more expensive to go with an FHA loan, but there are low down payment options and flexible credit requirements for those with a score as low as 500.

•   USDA loans: United States Department of Agriculture mortgages, available in rural areas, offer great interest rates, zero down payment options, and competitive mortgage insurance rates. Some USDA mortgages are directly serviced by USDA, and have a subsidized interest rate.

•   Conventional loans: Many borrowers opt for conventional financing if they qualify. Over the course of a mortgage, this is one of the least expensive types due to competitive interest rates and mortgage insurance premiums that drop off after you pay down the loan past 80%.

•   VA loans: A loan from the U.S. Department of Veterans Affairs is hard to beat for service members, veterans, and others who qualify. You may be able to qualify for a home purchase price with no down payment. VA loans may have great interest rates and flexible credit requirements (depending on the lender).


💡 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

Purchasing a home on a $36,000 salary is a feat you’ll need help with in a market where the U.S. median sale price tops $342,000. Whether it’s down payment assistance, paying down debt, nurturing your credit score, or adding income, there are a lot of moves you can make to bolster your home budget. In the end, when you move into a place that’s all yours, the hard work will be worth it.

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.

FAQ

Is $36K a good salary for a single person?

A single person can afford to live on $36,000 a year in more affordable places in the U.S., but it could still be difficult to afford to buy a home in today’s real estate market.

What is a comfortable income for a single person?

The median income for a single person is $56,929, according to data from the U.S. Census, but a comfortable income for a single person depends on your lifestyle.

What is a liveable wage in 2024?

What is livable varies greatly by location. For a single person living in San Francisco, a living wage is equivalent to $26.63 per hour. In other cities, it’s considerably less.

What salary is considered rich for a single person?

If you make more than $234,342 per year, you would make more than 95% of earners in the United States. But what feels “rich” is going to depend on your lifestyle and where you live.

Photo credit: iStock/mapodile

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-criteria 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.

^†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.
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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Even if you’re paying a student loan or car loan, a $300,000 annual income means you can likely afford a home priced around $925,000. An income of $300,000 a year is more than four times the U.S. median household income of $74,580, so it gives you a good head start. But there are several other variables that could affect your ability to purchase the home you want — including your down payment and credit history, current interest rates, and the location you want to be in. Let’s take a look at the breakdown of the factors that affect how much of a mortgage you can manage.

What Kind of House Can I Afford on a $300,000 Annual Income?

You can get a better idea of how much house you can afford on your $300,000 income by using an online mortgage calculator with taxes and insurance or by prequalifying with one or more lenders for a home mortgage loan. Or you can run the numbers yourself using a formula lenders often consider. The 28/36 rule says your mortgage payment shouldn’t be more than 28% of your monthly gross income, and your total monthly debt, including your mortgage payment, shouldn’t be more than 36% of your income.

Whether that’s doable in a housing market in which both home prices and interest rates remain stubbornly high may depend on several factors, including home values in your specific area and the different types of mortgage loans for which you can qualify. One of the most important factors is your debt-to-income ratio.


💡 Quick Tip: One answer to rising house prices is a jumbo loan. Apply for a jumbo loan online with SoFi, and you could finance up to $2.5 million with as little as 10% down. Get preapproved and you’ll be prepared to compete in a hot market.

Understanding Debt-to-Income Ratio

You can expect lenders to take a close look at your debt-to-income ratio (DTI) — the second number in the 28/36 rule — when they’re deciding how much mortgage you can afford. It tells them how you’re handling your current debt, and if you can take on more.

Your DTI is calculated by dividing your total monthly debt payments by your monthly gross income. Mortgage lenders generally look for a DTI of 36% or less; but depending on the lender and the type of home loan you’re hoping to get, you may be able to qualify with a DTI up to 43% or even 50%.

Typically, the lower your DTI, the better your borrowing options. So to get the optimum loan amount, and the best rate and terms, you’ll want to keep an eye on this number.

How Your Down Payment Affects Your Costs

You may not need a big down payment to qualify for a home loan. But the more you can comfortably put down on a house, the less you’ll have to borrow, which can help lower your monthly payments. A higher down payment also could get you a lower interest rate. And if you put down at least 20%, you can avoid paying private mortgage insurance (PMI), which will further reduce your payments.

Other Factors that Can Affect Affordability

You can expect your income, debt, and down payment to play a major part in determining how much house you can afford. But these factors also can impact your ability to qualify for a mortgage that’s manageable, including:

Interest Rates

Qualifying for a lower mortgage interest rate can help you reduce your monthly mortgage payment — and the amount you’ll pay for your home over time. Though rates may seem fairly consistent from one lender to the next, banks do compete for customers. So you may be able to improve your rate — at least a little bit — if you do some comparison shopping. You also can help your chances of qualifying for a better rate by ensuring that your finances are in good shape and that you have a solid credit score.

Loan Term

Depending on the type of mortgage you choose, you may be able to choose the length of your home loan, so it’s good to know the pros and cons of each. If you’re choosing between a 15-year vs. a 30-year mortgage, for example, the shorter term may offer a less expensive interest rate, which could save you money over the life of your loan. But a 30-year term, which is the most common mortgage length, generally will have lower monthly payments.

Homeowners Insurance

Homeowners insurance premiums can be an important consideration as you plan your purchase. If you live in an area that’s considered “high-risk,” the cost — which is based in part on your home’s value — could be significant. Your costs also could increase if you need additional coverage, such as a flood or earthquake policy.

Most lenders require borrowers to have an adequate amount of coverage, so understanding how to buy homeowners insurance and comparing the policies and premiums can help you cut this expense.

Property Taxes

Property taxes, which are generally based on the assessed value of a home, are often included in a borrower’s monthly mortgage payment. The percentage you’ll be assessed can differ from state to state, and even county to county, so it’s important to include this amount whenever you calculate the affordability of a potential home purchase.

HOA Fees

Before you decide to buy a home, it’s a good idea to see if the community is governed by a homeowners association (HOA) and, if so, what the fees might be. Though the average is about $250 per month, fees can go as high as $2,500 per month or more.

Location

Home prices are typically higher in cities vs. rural areas, and the overall cost of living can vary by state. It also can be more expensive to purchase a home in a popular or established neighborhood, or in a well-rated school district.

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

How Down Payment Assistance Can Help with Home Affordability

At $300,000 in yearly income, you likely have the means to manage a higher monthly payment but you need some help with your down payment. It’s worth looking for a down payment assistance program that can help.

Though many assistance programs set limits on how much an eligible home can cost, or on the homebuyer’s income, it may be worth researching what’s available — especially if you live in a state with higher home prices. In California, for example, where the average home value is currently $743,435, there are counties where a first-time homebuyer with a $300,000 income still may qualify for assistance.

Home Affordability Examples

An online home affordability calculator can give you an idea of how much house you can afford on your income. All you have to do is plug in some basic information about your salary, savings, debt, and the home you hope to buy. Here are some hypothetical examples:

Example #1: Saver with Some Debt

Though Jan has been working for several years, she’s still paying off some student debt. She also has a car payment, and she uses a couple of credit cards that she usually pays off each month.

Gross annual income: $300,000
Amount available for down payment: $70,000
Monthly debt: $1,500
Mortgage rate: 6.5%
Property tax rate: 1.125%
House budget: $990,000

Example #2: Spends Less, But Also Saved Less

Ian’s car and student loans are paid off (thanks Mom and Dad!), and he doesn’t put much on his credit cards. He and Jan have similar credit ratings, and they’re looking in the same area. But Ian hasn’t managed to save as much for a down payment, which might affect what he can afford.

Gross annual income: $300,000
Amount available for down payment: $30,000
Monthly debt: $800
Mortgage rate: 6.5
Property tax rate: 1.125%
House budget: $925,000

3 Ways You Can Calculate How Much House You Can Afford

Along with using an online calculator to figure out how much house you might be able to afford on a $300,000 income, you also can run the numbers on your own. Some different calculations include:

The 28/36 Rule

We’ve already covered the 28/36 rule, which combines two factors that lenders typically look at to determine home affordability: income and debt. The first number sets a limit of 28% of gross income as a homebuyer’s maximum total mortgage payment, including principal, interest, taxes, and insurance. The second number limits the mortgage payment plus any other debts to no more than 36% of gross income.

Here’s an example: If your gross annual income is $300,000, that’s $25,000 per month. So with the 28/36 rule, you could aim for a monthly mortgage payment of about $7,000 — as long as your total debt (including car payment, credit cards, etc.) isn’t more than $9,000 per month.

The 35/45 Model

Another DIY calculation is the 35/45 method, which recommends spending no more than 35% of your gross income on your mortgage and debt, and no more than 45% of your after-tax income on your mortgage and debt.

Here’s an example: Let’s say your gross monthly income is $25,000 and your after-tax income is about $18,500. In this scenario, you might spend between $8,325 and $8,750 per month on your debt payments and mortgage combined. This calculation can offer a bit more flexibility with the amount of your mortgage payment, as long as you aren’t overburdened with other types of debt.


💡 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).

The 25% After-Tax Rule

If you’re worried about reining in your spending, or you have other goals you’re working toward, this calculation may be useful, because it offers a more conservative result. With this method, your target is to spend no more than 25% of your after-tax income on your mortgage.

Here’s an example: Let’s say you make $18,500 a month after taxes. With this method, you would plan to spend $4,625 on your mortgage payments.

Keep in mind that these equations can only give you a rough idea of how much you can spend. When you want to be more definite about the home price and monthly payments you can afford, it helps to go through the mortgage preapproval process.

How Your Monthly Payment Impacts the Loan You Can Manage

Some homebuyers may prioritize the overall price of a home or the interest rate they can get. But it’s how those factors and others combine to raise or reduce the monthly payments that may ultimately determine whether you can afford the home or not.Before signing on the dotted line, it’s a good idea to run the numbers on an online mortgage calculator to be confident you won’t stretch yourself too thin.

If you do find yourself struggling a bit — perhaps because your income changes or some other unexpected life change occurs — a mortgage refinance might help you lower your monthly payment (especially if interest rates drop).

Types of Home Loans Available to $300,000 Households

A $300,000 income can help a buyer qualify for multiple mortgage options, including conventional or jumbo loans. But it also could make you ineligible for a government-backed loan that has income limits. There also may be limits on the purchase price and type of property you hope to purchase, depending on the mortgage you get.

Here are a few of the options available to $300,000-income households:

Conventional Loans

A conventional loan is issued by a private lender, such as a bank, credit union or other financial institution. There are two types of conventional loans:

•   A conforming loan must abide by Federal Housing Finance Agency (FHFA) standards that apply to a borrower’s credit, debt load, and the loan size. (For 2025, the conforming loan limit is $806,500 in most areas and $1,209,750 in higher-cost areas.)

•   Nonconforming loans are loans that don’t meet one or more of the federal standards. A jumbo loan, though technically a conventional loan, is considered nonconforming because it exceeds the loan limit.

Government-Backed Loans

A government-backed mortgage is a home loan that’s insured by an agency of the federal government. There are three main types of government-backed loans:

•   FHA loans are insured by the Federal Housing Administration (FHA), and you may be able to qualify for this type of loan even if you have a lower credit score or a lower down payment. There are no limits on how much you can earn and get an FHA loan, but there are limits on how much you can borrow depending on where you plan to reside.

•   VA loans, which are guaranteed by the U.S. Department of Veterans Affairs, are for eligible members of the U.S. military and surviving spouses. There are no income limits for VA loan buyers, and there are no longer standard loan limits on VA direct or VA-backed home loans.

Recommended: 2024 Home Loan Help Center

The Takeaway

There are several factors that can go into determining how much home you can afford. Besides your income, you can expect lenders to look at your credit, your debt, and your down payment to decide how much you can borrow.

To find a loan and monthly payment that’s a good fit for you, it’s a good idea to research and compare different loan types and amounts. And, if you have questions, you can always seek advice from a qualified mortgage professional.

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.

FAQ

Is $300,000 a good salary for a single person?

According to the U.S. Census Bureau, only 11.5% of households earned $200,000 or more in 2022. So if you’re earning $300,000 all on your own, your salary isn’t just good, it’s great.

What is a comfortable income for a single person?

“Comfortable” varies widely from one person to the next but one way to feel comfortable is to set financial goals and then chip away at achieving them.

What is a livable wage in 2024?

The Massachusetts Institute of Technology’s Living Wage Calculator calculates living costs across the U.S., and the “livable wage” varies widely based on family size and location. For a single person with no children in Honolulu County, Hawaii, for instance, the living wage is $22.76 per hour. In Marion County, Alabama, it’s $14.80 per hour.

What salary is considered rich for a single person?

According to the Economic Policy Institute, in 2021, the top 5% of earners made, on average, $335,891. (If you consider only the top 1% to be “rich,” you’d have to earn $819,324 or more.)

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.

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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria 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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Phlebotomists who have a few years of experience under their belt can make around $38,530 per year or $18.53 an hour, according to the latest data from the Bureau of Labor Statistics (BLS).

In addition to a stable salary, the profession offers flexibility, versatility, and opportunities for advancement. However, before you can start work, you’ll need to earn a certificate from a postsecondary phlebotomy program.

Here’s a look at the earning potential of phlebotomists and the pros and cons of this career.

What Are Phlebotomists?

An essential supporting member of the healthcare community, phlebotomists are responsible for drawing blood for donations, medical exams, procedures, or research. They also help support patients who may be anxious about the blood draw or who struggle with an adverse reaction post-draw.

Other job duties often include:

•   Verifying a patient’s identity

•   Collect and labeling blood or other samples

•   Entering sample information into a database

•   Assembling, disposing of, and maintaining medical instruments

•   Cleaning and sanitizing the work area and equipment

•   Shipping or transporting blood or samples

Because phlebotomy requires a good bedside manner, it may not be the best fit for antisocial people.


💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

How Much Do Starting Phlebotomists Make?

Those new to the field can expect to earn less than the average — the lowest 10% of phlebotomist earners bring home less than $30,250, according to the BLS.

However, the earning potential of an entry-level phlebotomist typically goes up as they gain work experience and skills. BLS data shows that the top 10% of phlebotomist earners earn more than $51,610.

No matter where you are in your career, having a budget can be an important tool for tracking spending and savings goals. A money tracker app can give you real-time insights so you can continue making progress on your financial goals.

What Is the Average Salary for a Phlebotomist?

Where someone lives can play a role in how much income they earn as a phlebotomist. As the following table shows, phlebotomists in some states earn a much higher salary than others. For example, in Oregon, a typical salary is $45,769 a year; in Florida, it’s $27,444.

What Is the Average Phlebotomist Salary by State?

Recommended: Is a $100,000 a Year Salary Good?

Phlebotomist Job Considerations for Pay and Benefits

When researching how much money a phlebotomist makes, it’s important to factor in potential benefits.

While the median annual wage for phlebotomists is $38,530, their total compensation package can be much higher if they qualify for benefits like health insurance or a 401(k) match. Because it’s common to hold a full-time role as a phlebotomist at a hospital or lab, it’s possible to find a role that offers a standard suite of employee benefits, like paid vacation and dental coverage.

Looking to get the most competitive pay? Consider focusing your job-search efforts on work settings that tend to pay more. Let’s take a look at the median annual salary for phlebotomists in a few different workplaces:

•   Outpatient care centers: $42,750

•   Medical and diagnostic laboratories: $41,580

•   Hospitals: $37,400

•   Offices of physicians: $36,970

•   All other ambulatory healthcare services: $36,190

Recommended: Salary vs. Hourly Pay

Pros and Cons of Phlebotomist Salary

Like any career path, phlebotomy has its share of advantages and disadvantages.

💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

The Takeaway

To recap: How much does a phlebotomist make a month? Phlebotomists can expect to earn about $3,211 per month, which translates to $38,530 per year. But their earning potential can rise as they gain experience and skills, or if they work in a more lucrative setting, like an outpatient care center.

If you have a steady hand and a good bedside manner, then a career in phlebotomy may be a good fit for you.

FAQ

What is the highest-paying phlebotomist job?

Typically, phlebotomists who work in outpatient care centers make the most out of their peers. The median salary for phlebotomists in outpatient care centers was $42,750 as of 2022, per the BLS.

Do phlebotomists make $100k a year?

Typically, phlebotomists don’t earn a $100,000 salary. The median annual wage for phlebotomists is $38,530, and only the highest 10% of earners make around $51,610.

How much do phlebotomists make starting out?

When first starting their careers, phlebotomists should expect to make lower than the median annual wage for this role. The lowest 10% of earners in this role earn less than $30,250. However, their income may rise as they gain more experience.

Photo credit: iStock/SDI Productions

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

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Nursing can be a well-paying profession. According to the Bureau of Labor Statistics (BLS), the median salary for a registered nurse (RN) is $81,220 per year or $39.05 per hour.

In fact, nursing can be a rewarding career path in more ways than one. Not only can these healthcare professionals provide for themselves financially, they also care for people during times of need.

To better understand what it’s like working as a nurse and what the earning potential is, keep reading.

What Are Nurses?

An RN provides patients with care and support, and they offer education on health issues and conditions. Responsibilities can vary by workplace and specialty. For example, a geriatric nurse works with elderly patients and provides a different type of care than an oncology nurse, who supports patients with cancer.

Generally speaking, an RN’s tasks often include the following:

•   Evaluate the condition of patients.

•   Set up care plans for patients.

•   Consult and collaborate with doctors and other healthcare providers.

•   Operate and monitor medical equipment.

•   Document patients’ medical backgrounds and symptoms.

•   Administer medications and treatments.

•   Assist in conducting diagnostic tests and analyzing the results.

•   Educate patients and their families on managing illnesses or injuries.

•   Provide instructions for post-treatment care at home.

Nurses often work on a team made up of other nurses, physicians, and healthcare specialists. Some nurses may even supervise other RNs, nursing assistants, or home health aids. Because of how much collaboration and patient interaction is involved in nursing, this role may not be a great fit for introverts.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Nurses Make?

On average, entry-level nurses earn around $80,321 a year or $39 per hour, according to ZipRecruiter. But keep in mind that amount represents a middle ground; incomes for nurses fresh out of school can run the gamut from $36,000 to $136,000.

Recommended: What Is Competitive Pay?

What Is the Average Salary for a Nurse?

Unlike some other healthcare professionals, nurses may be paid hourly or earn an annual salary. They can also make extra by working overtime, overnight, or on holidays. As mentioned, nurses who are paid by the hour earn a median rate of $39.05 or $81,220 per year.

It’s worth noting that where a nurse chooses to work can significantly affect how much they earn. When it comes to settings that pay the most money, the government comes out on top. Let’s take a look at the median annual wage for nurses across a variety of settings, per the BLS:

•   Government: $92,310

•   Hospitals: $82,250

•   Ambulatory healthcare services: $78,670

•   Nursing and residential care facilities: $75,410

•   Educational services: $65,450

Nurses also have the option to take travel assignments, which can be an attractive option for professionals seeking flexibility, short-term assignments, and competitive pay. Travel nurses can expect to earn anywhere from $81,000 to $128,00 a year.

To help manage that high level of income, consider digital tools like a money tracker app. In addition to being convenient, it can help take the guesswork out of budgeting and setting financial goals.

What Is the Average Salary by State for a Nurse?

The state a nurse chooses to work in can greatly influence how much they earn, as illustrated by the following table:

Recommended: Is $100,000 a Good Salary?

Nurse Job Considerations for Pay and Benefits

Whether they’re paid by the hour or per year, a nurse can make a good living. And there are ways to supplement that income or create a flexible working schedule that supports a work-life balance. For instance, nurses can choose to work part-time, as many hospitals are short-staffed and need the extra help and expertise. There’s also travel nursing, which allows these healthcare professionals to pick up short-term assignments.

But if a full-time role with benefits is what you’re after, you may have little trouble finding one that fits. The BLS projects that between now and 2032, the number of RN jobs available in the field will grow 6%. And those on-staff positions can come with benefits like health insurance, retirement contribution matches, and tuition reimbursement.

Pros and Cons of Nurse Salary

Like any career path, working as an RN comes with a unique set of pros and cons that are worth keeping top of mind:

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

While the hours can be long and the work physically demanding, nurses have the potential to earn a lot of money. As they gain years of experience or enter more lucrative industries, these professionals can potentially earn a six-figure salary. Bottom line: If you’re passionate about health care and helping others, you may find that a career in nursing is professionally and financially rewarding.

FAQ

What is the highest-paid RN job?

The type of nursing role an RN takes can affect how much they earn. Those looking to earn high incomes may want to pursue government nursing, which earns a median salary of $92,310. This is much higher than the $81,220 median salary for all RNs.

How much money does a RN make in California?

In the state of California, an RN can expect to earn an average of $78,490 per year, or an hourly rate of $37.74, per ZipRecruiter.

What state pays nurses the lowest?

Of all the 50 states, Florida pays its nurses the least, according to ZipRecruiter. Nurses there earn an average of $56,707 a year, and their average hourly wage is $27.26.

Photo credit: iStock/FG Trade

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

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