How Much Do I Need to Make to Buy a 300K House?

Using your current income to calculate how much house you can afford is a great way to budget for a home purchase. But if you prefer a more aspirational or goal-oriented approach, it can be better to start with a question like: “How much do I need to make to buy a 300K house?”

Fortunately, this approach is just as straightforward as using your current income to calculate a home-buying budget. We’ll walk you through all the information you need to determine if you can afford a 300K house. We’ll also show you strategies for boosting your buying power, even if you have little or no down payment to offer.

Get more purchasing power with down payment assistance

You might qualify for help paying the upfront costs of buying a home.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.

How much do I need to make to buy a 300K house?

On the low end, you need to make $56,000 to $62,000 to buy a $300K house. Based on a 7.31% interest rate with no down payment, your mortgage payments will be 50% of your monthly income if you make $62K a year. With a 5% down payment, your mortgage payments will be 50% of your monthly income if you make $56K a year. 

Clearly, a monthly mortgage payment that’s 50% of your monthly income isn’t ideal. However, you can get certain types of loans even if the payment is 50% of your monthly income.

If you’d rather not spend so much of your monthly income on your mortgage payment, you’ll need to dive a little deeper to find out approximately how much you can expect to pay each month for a $300K house.

How much is a monthly payment on a 300K house?

The monthly payment on a $300K house will range between about $1,847 and $2,854, assuming a 7.31% interest rate and a standard 30-year mortgage. Your exact monthly payment will vary depending on your exact interest rate, your down payment, homeowner’s insurance, and other factors.

Mortgage calculator for a 300k house

In most cases, all of your home-ownership related costs are wrapped up in your single monthly mortgage payment. This includes:

• Loan principal and interest
• Property taxes
• Private mortgage insurance (if applicable)
• Homeowner’s insurance

The bulk of your payment consists of principal and interest. Here’s how the costs break down, based on a $300,000 home price and a variety of down payment amounts:

Numbers based on a standard 30-year mortgage and no additional debts.

Your exact numbers may vary a bit, based on where you live, as that will change your property taxes and homeowner’s insurance. This example is based on Colorado property tax rates and average homeowner’s insurance rates.

Additionally, you only have to pay private mortgage insurance if your down payment is less than 20% of the purchase price. Down payment assistance can help you get over that 20% mark and knock a couple hundred dollars or more off of your monthly mortgage payment.

Other costs to consider: closing costs and repairs

Your mortgage payment covers most of the costs of buying a house. However, it’s also important to account for closing costs and home maintenance.

Closing costs can be upwards of $10,000. In most cases, closing costs get added to your mortgage loan, so you don’t have to pay them up front. However, they effectively increase the price of your home, which needs to be factored into your budget.

Additionally, it’s wise to build money into your budget for home maintenance and repairs. Inevitably, something will eventually need to be fixed. If you’ve been dutifully putting money away every month, you’ll be better prepared for these costs.

Your home maintenance budget won’t get wrapped into your mortgage payment, but it’s a good tactic to treat home maintenance as a fixed cost and put money in the bank for it every month.

What if I have no down payment?

You’d need to make between $86,133 and $110,743 a year to comfortably buy a $300K house with no down payment. It’s possible to purchase a $300,000 house on a salary less than $86,133. However, it might be more financially challenging than you’d like, because the monthly payment would be around $2,584. 

What if I get down payment assistance?

Increasing your down payment is the quickest way to increase your purchasing power and reduce the monthly payment on a $300,000 house. And down payment assistance (DPA) is the most efficient way to do this.

There are multiple sources of down payment assistance. State and local governments, banks, and other private organizations offer DPA programs.

DPA gives you access to thousands and even tens of thousands of dollars to help you make a larger down payment. Many DPA programs do not require you to pay back the funds, and you can often use the money to cover closing costs as well.

Down payment assistance can significantly decrease how much you need to make a month to buy a $300K house. See how increasing your down payment reduces your monthly mortgage payment:

With Stairs Financial, you can easily find out exactly which down payment assistance programs are available to you, compare each program side-by-side, and make a more informed decision.

Stairs connects you to qualified lenders who work with all the down payment assistance programs you might qualify for, then lets you compare your options side-by-side.

Learn more.

Can I afford the payments on a 300K house with my income?

Whether or not you can afford the payments on a $300K house with your income depends on your monthly income and financial situation. Of course, you don’t want your mortgage payment to eat up too much of your monthly income, so it’s wise to follow some budgeting guidelines. 

Your budget: Following the 28/36 rule

A good way to budget for buying a house is following the 28/36 rule. The 28/36 rule comes from personal finance experts, and it states that your housing expenses should not exceed 28% of your gross monthly income and your total debt should not exceed 36% of your gross monthly income.

You can bend this rule, if you’re comfortable with it. Some types of mortgage loans allow you to use up to 50% of your income to make mortgage payments.

One way to work within this rule is to multiply your gross monthly income by 28% (0.28) to find out how much monthly payment you can afford on 28% of your monthly income.

However, since we’re starting with a house price and working back to the affordability here, a more logical way to do this would be to use an online mortgage calculator to find the monthly payment on a $300,000 house and divide that monthly payment by 28%, or whatever percentage you can comfortably afford.

Here’s how much you’d have to make to afford the payments on a $300K house, with different down payment amounts, if you strictly follow the 28/36 rule:

The required salary could be even lower, if you flexed your mortgage payment to more than 28% of your gross monthly income.

3 examples of affordability for a 300k house

There are plenty of reasons why you might need to bend the 28/36 rule. If you have other debts or a more limited income, you might need to step outside the bounds of the 28/36 rule.

Assuming you know how much you’re going to invest in your down payment, here are three examples of affordability for a $300K house that step outside the lines of the 28/36 rule:

As you can see, bending the 28/36 rule drastically broadens the range of incomes that can afford a $300K house. Just make sure that you break the rule responsibly.

Home affordability FAQs: Budgeting for a 300K house

Here’s a quick round of the most commonly asked questions about budgeting for a $300K house.

Can I afford a 300K house on a 100K salary?

Yes, you can afford a $300K house on a $100K salary. Even if you made a zero down payment, your monthly mortgage payment would be about $2,584. This mortgage payment would be 31% of your monthly income, which is totally manageable with deliberate budgeting.

Can I afford a 300K house on a 70K salary?

You can afford a $300K house on a 70K salary. You might need some down payment assistance, and potentially use up to 40% of your monthly income to make your mortgage payments, but it can be done.

For a deeper dive on this, read our guide to how much house you can afford if you make $70,000 a year.

Can I afford a 300K house on a 60K salary?

It’s possible that you can afford a $300K house on a $60K salary. The minimum income to buy a $300,000 house is about $55,000. However, to make this work, you’ll need minimal or no other debt, and you’ll have to invest around 50% of your monthly income in your mortgage payment.

For more information, check out how much house you can afford with a $60K salary.

Can I afford a 300K house on a 40K salary?

You may not quite be able to afford a $300K house on a $40K salary. $55,000 is about the minimum salary for buying a $300,000 home. However, that doesn’t mean you can’t afford to buy a home. There are plenty of ways to find a house under $300,000 in every state.

Learn how to budget for buying a house on $40K a year.

How much is a monthly payment on a 300K house?

The monthly payment on a $300K house will range from $1,850 to $2,585. Your monthly payment depends on what state you’re buying in, your interest rate, your down payment, homeowner’s insurance, and other factors. This range of monthly payments reflects variations in these factors.

What income do I need to buy a 400K house?

The minimum income you need to buy a $400K house is about $82,275. This is how much you’d need to make if you made a zero down payment on a $400,000 house and spent 50% of your income to make your mortgage payments.

Go further on 300K with down payment assistance

Down payment assistance (DPA) is an untapped option for many homeowners. There are a number of programs that offer grants, loans, and other assistance to help you make a larger down payment and boost your buying power. 

It can be difficult to get good information about all of the available DPA programs, and even harder to compare them all side-by-side. This is where Stairs Financial comes in.

Stairs connects you to qualified lenders who work with all the down payment assistance programs you might qualify for, then lets you compare your options side-by-side.

Learn more.