How much of a home can you purchase with a salary of $50 to 60 thousand and with a down payment of about?

Asked by Loretta, South Jersey 08021 Sat Mar 7, 2009

This will be a first time home buyer with a savings of, $25,000.00. I'm not sure on what type of home my family is looking for but they do have this savings on hand. They told me that they really want to purchase a single home espically having 3 small children. How much of a house can they purchase with this salary?

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Erica Ramus,…, Agent, Pottsville, PA
Thu Mar 19, 2009
There are so many variables involved! What do you owe on credit cards and your cars? What are your other monthly obligations? You have a rare thing these days: a good downpayment! So lenders will love to talk to you. Pick a lender and sit down with him to discuss your options.
1 vote
Kimberly Col…, Agent, Limerick, PA
Thu Mar 19, 2009
First I would advise you to speak with a loan officer to see what you qualify for!

Get a Realtor!!! Especially one that is an Accredited Buyers Agent (ABR). You want someone looking out for you and that mainly works with buyers! Sit down with your Realtor and discuss what you are looking for.
If you would like a name of a Loan Officer to speak with please give me a call at 610-476-7519. Also if you would like help looking for your new home please feel free to call me I love working with home buyers!
Kimberly Collins
Realtor, ABR
Keller Williams Realty Group
O: 610-792-5900 Ext 8177
C: 610-476-7519
0 votes
Get-smart, , Durham, NC
Sat Mar 7, 2009
or you can go with owner financing that will avoid all the red tape of mortgage lenders.
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Mar 7, 2009
You need to contact a mortgage broker determine lender approval based on your credit scores, employment history 2 years, debt ratio.

Estimate approx. $140K - $180K

Lynn911 – ~ National Featured Realtor
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0 votes
Get-smart, , Durham, NC
Sat Mar 7, 2009
I would say it depend on what your monthly expenses are but if you are looking for owner financing you can proabably buy a home for $150,000 for about $1,000 per month or $250,000 for $1,800 per month. This is just a ballpark.
0 votes
Marty S, , Irvine, CA
Sat Mar 7, 2009
You need to sit down with a mortgage broker and go over all of your scenario.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
877-238-6324 FAX
0 votes
Dawn Fussell, Agent, Phila, PA
Sat Mar 7, 2009
Hi Loretta

The solution would be to talk it over with a reputable mortgage lender. I can refer you to a couple and your family can choose which one would work the best for them.

Please either email or call.
Dawn Fussell
0 votes
Bill Eckler, Agent, Venice, FL
Sat Mar 7, 2009

There are a number of factors that are considered when making this determination. The best course of action is to visit several loan specialists for their advice. Be sure to request a "good faith estimate." This is a written account of the program(s) and rates the agent provide for your needs.

Good luck
0 votes
Judy May, Es…, , Collegeville, PA
Sat Mar 7, 2009
Hi Loretta! Great question.

As my colleagues suggest below, salary --by itself -- doesn't tell the whole story. When an underwriter makes a decision on a loan, there are two major considerations: one is the ratio between the proposed mortgage payment and the monthly gross salary (that ratio should ideally be somewhere in the 28-32% range). The other ratio is the total debt (mortgage payment + car payments + credit cards + student loans, etc.) in relation to salary. This second ratio should be under 45%.

Bottom line: salary is only PARTof the picture. A home budget cannot accurately be determined without knowing the amount of total debt that a person or family has.

If you're interested, I know a WONDERFUL mortgage representative who would be happy to provide a FREE, no-obligation consultation (he would ask the homebuyer basic questions to determine the above information and, from that, be able to provide a target home price range). If you'd like his contact information, just call me at (610) 324-5240 or email me at

I hope this helps. Please pass along my "good luck" wishes to the prospective first-time homebuyer -- and also let them know that they can always contact me directly at (610) 324-5240) with any additional questions they may have.


Judy May, Esquire, REALTOR
Your DIAMOND Realtor
O: (610) 489-7700
C: (610) 324-6250 (preferred)

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0 votes
Gita Bantwal, Agent, Jamison, PA
Sat Mar 7, 2009
Mortgage companies look at monthly income as well as monthly debt. When I was new in the business, I showed homes to a doctor making $100,000 a year. This was in 1992. When they talked to a motgage person they found out that their student loans and other debts were too high and they could not qualify.
Besides it depends on credit score. As Somers have suggested, it is best to talk to a loan officer.
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0 votes
Chris & Step…, Agent, Philadelphia, PA
Sat Mar 7, 2009

I would contact a mortgage pro who can qualify the purchasor and quantify what a loan amount the family could qualify for. Also it is important to note what amount of mortgage payment is comfortable too which may be a lower loan amount versus what one qualifies for.

The qualifications will not only include the income, but how much debt one has as well. The more consumer debt (credit cards, cars, etc..) one has will also affect how much one qualifies for as well so it is more than just income.

I am sure several mortgage pros will answer this question too. I would recommend consulting with one of them. If you need a referral, we can refer several to you as well.

Good luck !
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