How much house can I afford on $180,000 a year?
A home up to about
$635,927
On $180,000 a year, you could afford a home up to about $635,927 with a 20% down payment of $127,186. The mortgage payment would be about $3,467 a month, or $4,200 with property tax and home insurance.
- Down payment
- $127,186
- Mortgage
- $508,741
- Payment a month
- $3,467
What it costs each month
| Mortgage payment | $3,467 |
| Property tax | $583 |
| Home insurance | $150 |
| Total | $4,200 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $26,006 (5%) | $520,115 | $494,109 | $3,367 |
| $54,545 (10%) | $545,444 | $490,899 | $3,345 |
| $127,186 (20%) | $635,927 | $508,741 | $3,467 |
How it’s worked out
Lenders usually keep housing costs (mortgage, property tax, insurance and PMI) under 28% of your gross income, and all your debt payments under 36%. On $180,000, that's $4,200 a month for housing.
Assumes no other debts, 1.1% property tax, $1,800 a year home insurance and 0.5% PMI below 20% down, using the 28/36 guideline. Freddie Mac’s average 30-year fixed rate was 7.24% on 29 October 2026.
- Uses the 28/36 guideline: housing costs (mortgage, property tax, insurance, PMI and HOA fees) up to 28% of gross income, and all debt payments up to 36%. Lenders can approve higher ratios, so this is a comfortable limit rather than the most you could be lent.
- Assumes all your savings go towards the down payment. Closing costs, usually a few percent of the price, are extra.
- PMI is charged while your down payment is under 20%.
Frequently asked questions
How much house can I afford on $180,000 a year?
On $180,000 a year, you could afford a home up to about $635,927 with a 20% down payment of $127,186. The mortgage payment would be about $3,467 a month, or $4,200 with property tax and home insurance.
How much down payment do I need on $180,000?
With $26,006 saved, you could buy a home up to about $520,115. With $54,545 saved, you could buy a home up to about $545,444. With $127,186 saved, you could buy a home up to about $635,927.