How much house can I afford on $35,000 a year?
A home up to about
$104,679
On $35,000 a year, you could afford a home up to about $104,679 with a 20% down payment of $20,936. The mortgage payment would be about $571 a month, or $817 with property tax and home insurance.
- Down payment
- $20,936
- Mortgage
- $83,743
- Payment a month
- $571
What it costs each month
| Mortgage payment | $571 |
| Property tax | $96 |
| Home insurance | $150 |
| Total | $817 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $4,281 (5%) | $85,615 | $81,334 | $554 |
| $8,979 (10%) | $89,785 | $80,806 | $551 |
| $20,936 (20%) | $104,679 | $83,743 | $571 |
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 $35,000, that's $817 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 $35,000 a year?
On $35,000 a year, you could afford a home up to about $104,679 with a 20% down payment of $20,936. The mortgage payment would be about $571 a month, or $817 with property tax and home insurance.
How much down payment do I need on $35,000?
With $4,281 saved, you could buy a home up to about $85,615. With $8,979 saved, you could buy a home up to about $89,785. With $20,936 saved, you could buy a home up to about $104,679.