How much house can I afford on $45,000 a year?
A home up to about
$141,317
On $45,000 a year, you could afford a home up to about $141,317 with a 20% down payment of $28,264. The mortgage payment would be about $770 a month, or $1,050 with property tax and home insurance.
- Down payment
- $28,264
- Mortgage
- $113,053
- Payment a month
- $770
What it costs each month
| Mortgage payment | $770 |
| Property tax | $130 |
| Home insurance | $150 |
| Total | $1,050 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $5,780 (5%) | $115,582 | $109,802 | $748 |
| $12,121 (10%) | $121,209 | $109,088 | $743 |
| $28,264 (20%) | $141,317 | $113,053 | $770 |
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 $45,000, that's $1,050 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 $45,000 a year?
On $45,000 a year, you could afford a home up to about $141,317 with a 20% down payment of $28,264. The mortgage payment would be about $770 a month, or $1,050 with property tax and home insurance.
How much down payment do I need on $45,000?
With $5,780 saved, you could buy a home up to about $115,582. With $12,121 saved, you could buy a home up to about $121,209. With $28,264 saved, you could buy a home up to about $141,317.