## How much income do you need to qualify for a mortgage?

The lender will approve your loan based on your debt to income ratio (DTI), which is the total house payment, including taxes, insurance and mortgage insurance (if any) plus other monthly debt payments, all divided by your gross monthly income. If you work 40 hours per week, your gross monthly income is $2,250.

## How much can I afford to pay for a Piti mortgage?

28% Rule: A buyer that makes $40,000 per year can afford around a $933 monthly PITI mortgage payment if their monthly income is $3,333, ($3,333 x 0.28 = $933).

## How much can I afford to pay for a mortgage?

36% Rule: A buyer that makes $40,000 per year, total monthly debt payment which includes PITI, car notes, food, credit card bills, and student loans, shouldn’t exceed $1,200 of their gross monthly income, ($3,333 x 0.36 = $1,200). The usual rule of thumb is that you can afford a mortgage two to 2.5 times your annual income.

## Can I afford a house on $40K a year?

That’s doable on $40,000 (even though I make more than that). However, if you live in Los Angeles, New York, or some of the more expensive areas of the country, you may not be able to afford a house on $40,000 per year. I just did a quick google search and the median home cost in Los Angeles is lis