How Much House Can I Afford With 70k Salary

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    Before purchasing a home, it’s critical to consider how much you can afford on your current salary. This guarantees that you won’t lose your home to foreclosure, and you won’t struggle while paying off your house. This blog post will cover everything that you need to know to answer the question “how much house can I afford with 70k salary?”

    How Much House Can I Afford With 70K Salary: Factors That Determine The Purchase Price

    How Much House you can afford

    Most people with this income can afford a mortgage payment of up to $2400. How much house you can afford depends on a lot more than just your salary. Things like location, lifestyle, the type of house desired and more will all be contributing factors to how much house you can afford.


    Location is a key component to consider before looking at the square footage. For example, a mansion in Springfield, Ohio can be found as cheap as $200,000. Springfield, Ohio has a low cost of living, and few amenities, and is considered one of the most dangerous cities.

    It has one of the highest overall crime rates when compared to other cities in the United States based on statistics that look at the crime rate per 100,000 people. The poverty rate is also extremely high. It’s not a popular place to live.

    Other cities, such as Los Angeles, are known for being packed with celebrities, and fun things to do, and are considered desirable locations. Mansions are sold for millions of dollars. In desirable locations like this, your 70k salary would allow you to purchase a modest house.


    Houses with certain features cost significantly more than houses without them. For example, a home with solar panels, and a pool. pond or large, fenced-in backyard will cost significantly more than a house without those same features. Houses with finished basements and more than one bathroom typically cost more as well.

    Other Factors That Contribute To House Price

    While location and house features play a large role in the purchase price of a house, there are several other factors that can greatly increase, or decrease, the final purchase price. These include:

    • Age
    • Condition
    • Usable space
    • The current real estate market
    • Property size
    • Prices of comparable properties
    • Access to nearby healthcare
    • Proximity to nearby highways
    • Noise levels (houses near airports are considerably cheaper due to the high noise level)
    • Crime rate

    Determining how much house you can afford depends on the type of house you want, or are willing to settle for. If you are a DIY pro and would love a fixer-upper, you’ll find that you’re able to afford more house than a person that would like a brand new home.

    How To Calculate Your Home Buying Budget

    Calculate Your Home Buying Budget

    How much house you can afford also depends on your budget. This will be significantly different for every person due to the various factors that need to be considered. For example, a person that is paying off student loan debt will be able to afford less than a person that is debt free. There are quite a few ways that you can determine how much house you can afford.

    Housing Budget Tools

    Using a calculator to determine your housing budget is one of the easiest ways to determine how much house you can afford. This housing budget calculator makes the process seamless. Simply input key information, such as income before taxes, debts paid monthly, how much you will be paying for a down payment, etc. It will then tell you an estimated purchase budget.

    Working With Professionals To Purchase A Home

    Working with companies that participate in rent to own programs or OfferPad is a simple way to determine how much house you can afford. They will ask you several questions, such as monthly income, debt to income ratio, etc. to determine how much you can afford.

    Then, they will let you choose a home within that price range. It makes the entire process easier and involves zero calculations on your part.

     Use The FHA Rule Of Thumb

    The FHA has a general rule of thumb that calculates how much you can afford in monthly rent or mortgage payments based on your overall income. According to the FHA, a person that makes 70k per year, which is approximately $5,833 per month, can afford payments that are $1600-$2400 per month.

    Other Factors To Consider Before Purchasing A Home

    Costs To Consider Before Purchasing A Home

    Most home budget tools take things like current debts into consideration. However, some only take your gross income into consideration. Make sure that you consider every aspect of your finances before signing a contract to purchase a home.

    Other Variables That Determine Your Housing Budget

    While salary is an important starting point when determining how much you can afford, it’s far from the only variable that will determine what your budget is. Other factors that mortgage lenders and a mortgage calculator will consider  include:

    • Current debts
    • Mortgage rates
    • Interest rates
    • Credit score
    • Down payment amount

    The better your credit score, the lower your interest rate will be. That means you’ll be able to afford a larger house. Having fewer debts and making a larger down payment will also give you more purchase power.

    Keep In Mind Other Expenses

    When determining your debt to income ratio, most mortgage lenders and budgeting tools consider things like student loan debt. They do not take other costs into consideration, such as child support payments, utilities, or money that will be spent on repairs to the home.

    Most mortgage lenders and sellers also do not consider the other costs included in purchasing a home. Keep in mind closing costs, property taxes, and other expenses that go hand in hand with owning a home.

    Before determining how much purchasing power you have in the housing market, sit down and write down all of your monthly expenses based on the money you have spent in the last three months. This will give you a better picture of the overall budget you have to work with.

    Remember, It’s Up To Your Mortgage Lender

    Your mortgage lender will determine how much purchasing power you have in the market. Mortgage lenders will do their own calculations, and determine the size of the loan that you qualify for. This could be substantially more, or less than the figure that you came up with. Typically, you can’t negotiate a larger amount.

    How To Afford A More Expensive House

    Can I even afford a more expensive house

    If you’re currently paying off student loan debt and want to live in a popular area, there’s not a great chance that you’re going to be able to afford the house of your dreams. However, there are several options to help you learn how to afford a more expensive house.

    Pay Down Debt Before Home Ownership

    How much debt you have plays a large role in determining how much you can afford for your monthly payment. In order to increase your purchase power, you need to be able to afford a higher monthly mortgage, which means that you need to reduce your debt to income ratio. To do that, it’s important to pay down your existing debt.

    This will also increase your credit score, which can help you land a lower monthly mortgage payment and lower interest rate.

    To pay down your debt, use the same budgeting method mentioned above: write down all of the monthly expenses. Include smaller expenses as well, such as gas, groceries, eating out, etc.

    Then, take a look at where you can cut costs. Trim money off your grocery bill by buying items on sale, shop thrift stores for clothing or consider not eating out. Take the saved money and use that to pay down debt quicker.

    Increase Your Credit Score

    You can take a look at your credit score for free on Credit Karma. The three major reporting agencies will also send you a copy of your credit score for free. Once you view your credit score, start paying down debts that are listed on your credit score one debt at a time. This can help reduce your monthly debt amount, increase your credit score and give you a higher monthly income. When trying to increase your credit score, remember that:

    • Inquiries for credit cards (applying for credit cards) has a large impact
    • Making monthly payments on time is critical
    • Having credit is important. If you don’t have a credit card, consider getting one.

    Pick Up A Few Side Hustles

    Budgeting and cutting out luxuries can help you save money, but some people will also need to make more money. This can help you pay down debt quicker, and give you more money in your savings account. Popular options for side hustles include:

    • Babysitting
    • Cleaning
    • DoorDash
    • Become a part-time Amazon driver
    • Online surveys
    • Freelance writing

    These can help you earn up to at least a few hundred dollars a week which can help you save up a larger down payment, which is going to help you afford a larger house.

    Other Options For Home Ownership

    If you find that you can’t afford a house that is the size that you want, there are other routes you can take to help you become a homeowner of a large, beautiful home.

    Purchase A Fixer Upper

    Purchasing a large home that requires a bit of work is often well worth it. Historical homes have a certain amount of charm. Families that already have a handyman as a part of the family will find that they spend significantly less on repairs than homeowners that hire professionals.

    When purchasing a house that needs work, it’s important to have it properly inspected. This will guarantee that you don’t accidentally bite off more than you can chew.

    Build A House

    Building a house is significantly cheaper than buying a home. There are quite a few steps to building a home, but it is often well worth the additional effort.

    Rent To Own Programs

    There are good and bad things about rent to own programs. Some programs are designed to help you save money. They require that you pay an additional amount every month that is then put into a savings account for you. Then, this money is given back to you so that you can use it for a down payment.

    Other rent to own programs help people become homeowners because they purchase the home for them, and then a portion of the rent goes towards the purchase price of the home. Most allow homeowners the option of purchasing the home via a traditional mortgage as well. These are a great option for people with a low credit score or those that need more time to be able to afford a monthly mortgage payment.

    Work With A Real Estate Investor

    A real estate investor invests in properties and then sells them. They typically work one on one with clients, which means that there is more room for negotiating a lower price.

    If a real estate investor can’t provide you with a house, they can still be helpful. Real estate investors are full of information regarding the real estate market, working with real estate agents, and how to afford a house. If you can’t purchase a home from your local real estate investor, consider asking them for advice.

    Keep An Eye On The Real Estate Market

    Markets go through cycles. Housing prices rise, and they fall. Instead of purchasing a home when you want to buy one, keep an eye on the market for a few years. Purchasing a home when the time is right can help you save thousands of dollars.

    For more advice on everything from home improvements that offer a large ROI to tips on working with iBuyers, check out the rest of the website!

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    James Vasquez

    James is the owner of Cyber Homes, a leading cash home buying company in the U.S. He primary buys and resells single family residential homes. James has purchased, fixed/renovated, and flipped over 100 houses in the 10 years of his real estate career. Helping homeowners out of difficult situations while providing for his family, is a gift from God.

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