When it comes to buying a home, one of the most important things to think about is how much you can afford. This will determine what type of home you can purchase as well as the monthly payments that you will be responsible for.

So, “If I make $70,000 a year, how much house can I afford?” you ask? Let us help you make this determination with this article.

Understanding The 28/36 Rule To Determine Your Debt-to-Income (DTI) Ratio

The best way to know how much you can afford to buy a house with a yearly salary of 70K is using the 28/36 rule. This rule is a guideline that establishes how much of your income should go towards housing and other debts each month.

It’s based on the idea that you shouldn’t spend more than 28% of your pre-tax monthly income on housing, and no more than 36% on all debts including housing. So, for the question, “With $70,000 a year, how much house can I afford?”, here is how to calculate it.

First, you’ll need to know your gross monthly income (before taxes). For a $70K yearly salary, we’ll say it’s $5,833 per month. To calculate the 28% “front-end” DTI ratio limit, you take $5,833 and multiply it by 0.28 which equals $1,625.

This means that $1,625 is the maximum amount you can spend each month on paying for a house, including principal, interest, taxes, and insurance (PITI). Now, let’s calculate the 36% “back-end” DTI ratio limit.

To do this, you take your $70K yearly salary and multiply it by 0.36 which equals $25,200. This is the maximum amount that you can spend each year on all debts combined, not just housing costs.

So, if you have any other debts, like student loans or credit card purchases, you need to factor those in as well when determining how much house they can afford with a $70K salary.

Keep in mind that these are general guidelines and you may qualify for a mortgage even if your DTI ratios are above 28/36. Every situation is different, so it’s always best to speak with a mortgage lender to get a more accurate idea of how much you can afford.

How Much Mortgage Could You Get With A 70K Annual Salary

Now that you know about the 28/36 rule, it is time to answer the next question, “What mortgage can I afford on 70K?”

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Based on the calculation above, your maximum monthly mortgage payment would also be $1,625. This could give you a loan of $200,000 to $300,000. However, the actual amount will depend on other factors, like your credit score, employment history, and down payment size.

So, if you are thinking, “Can I afford a 300K house on a 70K salary?” The answer is, “yes!” However, you should keep in mind that a $300,000 mortgage will have higher monthly payments than a $200,000 mortgage. You’ll need to make sure you are comfortable with the monthly payment amount before taking on a larger loan.

Tips On Increasing Your Chances Of Getting Approved For A Mortgage

Mortgage lenders can be quite strict when it comes to approving loans. However, there are a few things you can do to increase your chances of getting approved for a 70K income mortgage.

1. Make Sure Your Credit Score Is As High As Possible

The first thing that mortgage lenders look into when you are applying for a loan with them is your credit score. They use this number to determine how likely you are to make your monthly payments on time. The higher your score, the better chance you have of getting approved for a loan.

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If your credit score is not as high as you would like it to be, there are things you can do to improve it.

For starters, you can pay all of your bills on time each month. This will show lenders that you are responsible when it comes to handling your financial obligations and are more likely to make your mortgage payments on time as well.

You can also try to pay down any outstanding debts that you may have. This will help reduce your DTI ratio, which is another factor that mortgage lenders take into consideration.

Last but not least, try to avoid opening any new lines of credit before applying for a mortgage. This could have a negative impact on your credit score and make it more difficult to get approved.

2. Have A Steady Employment History

Lenders like to see that you have been employed for several years. And most preferably, you have worked for the same company for a significant period of time. This shows them that you have a stable income and are less likely to default on your loan payments.

If you have been employed for less than two years or have had several jobs during that time, don’t worry. There are still things you can do to improve your chances of getting approved for a mortgage.

One option is to get a co-signer with a strong employment history. Another is to provide documentation, like tax returns or pay stubs, showing a consistent income over the past few years.

Whatever route you decide to go, just make sure you talk to your lender about it beforehand so they are aware of your situation and can work with you to get the best possible outcome.

3. Save Up For A Large Down Payment

The larger your down payment, the lower your loan amount will be. This means you will have smaller monthly payments, which can make it easier to afford your mortgage.

A down payment of 20% or more is ideal, but if you don’t have that much saved up, there are still options available to you. Many lenders offer low-down-payment loans, like FHA loans, VA loans, and conventional 97 loans. These could be a good option if you don’t have the savings for a larger down payment but still want to purchase a home.

Which Types Of Homes Can You Buy With A 70K Yearly Salary

 Now that you have the answer to the question, “How much house can I afford with 70K salary?”, it’s time to start your home search! Here are the best options for your criteria.

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An apartment is a great option if you’re looking for something affordable and easy to maintain. You can find apartments with less than $1,000 per month, which leaves plenty of room in your budget for other expenses.

Apartments are also a good choice if you don’t want the hassle of yard work or home repairs. Most apartment complexes have on-site maintenance staff that can take care of these things for you.

Finally, living in an apartment means you’ll be close to other people, which can be great if you enjoy a social lifestyle.

Condo Units

A condo unit is similar to an apartment, but it’s typically a bit more expensive. However, the price can vary depending on the location and amenities of the complex.

Like apartments, condos are easy to maintain and don’t require much in the way of repairs or upkeep. And, you’ll usually have access to great amenities like swimming pools, fitness centers, and clubhouses.

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The downside to condos is that they can sometimes be noisy due to the close proximity of your neighbors. But if you don’t mind a little extra noise, a condo could be a great option for you.

Small Townhouses

If you’re looking for a bit more space, a small townhouse could be a good option. These homes usually have two or three bedrooms and start at more than $1,000 per month.

Townhouses are a great choice if you need more room than an apartment but don’t want the hassle of a large home. They often come with small yards, which can be easy to maintain. And, many townhouse complexes have amenities, like swimming pools and playgrounds, which are ideal if you have a family.

Single-Family Homes

Last but not least, we have single-family homes. These are a great option if you’re looking for more space and privacy.

However, this type of home could be the most expensive to purchase on this list. And, you should remember that you’ll be responsible for all the repairs and maintenance. This can add to your overall home-ownership costs, but it’s definitely worth it if you want your own private oasis.

What If I’m Interested In A House Beyond My Mortgage Affordability?

If you are interested in purchasing a home that is outside of what you can afford with your $70,000 salary, there are a few things you can do.

One option is to get another family member or two to help split the cost of the mortgage with you. Another is to look into government programs that can help assist with down payments and closing costs. Or lastly, you could save up for a larger down payment so that you can reduce the amount of your loan and monthly payments.

No matter what type of house you’re looking for, there are plenty of options available within your budget. With a little bit of research, you’re sure to find the perfect place to call home with just a $70,000 annual salary.

To learn more about this matter, you can also read a detailed article on how much can you afford to pay monthly for a house within this income range.

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Why Seek The Help Of The Experts

To make wise decisions in buying a home, it is best to seek help and guidance from the experts, such as a financial advisor and a real estate agent. These professionals can help you understand your options and narrow them down to find a property that is perfect for you.

A financial advisor can help you figure out how much you can afford to spend on a house and still have money left over for other expenses. Meanwhile, a real estate agent can help you find houses that fit your budget and meet your needs.

Both of these professionals can save you time and money in the long run, so it’s worth it to seek their advice before making any decisions.


So, there you have it! At this point, it should already be clear to you that 70K is a comfortable salary that can afford you a decent lifestyle and plenty of choices when it comes to housing. Just remember to consult with experts before making any final decisions.

Are you looking for more answers to the question, “With $70,000 a year, how much house can I afford?” Leave us a comment below and we’ll be happy to answer them for you. And, if you’re looking for more information on real estate, be sure to check out our other articles.

Happy house hunting!