If you make $70,000 a year, you can typically afford an estimated home price range between $200,000 and $310,000, depending on your down payment, credit score, and monthly debts.
Buying a home is an exciting milestone, but it can also feel overwhelming, especially when it comes to figuring out how much house you can actually afford.
With a $70K salary, we estimate a home price range of $200,000 to $310,000 based on common lending assumptions. But what you qualify for depends on dozens of factors, which we’ll cover in this article.
Home Price Estimates Based on a $70K Salary
Below we present three scenarios based on how much of your gross (before-tax) income goes toward your full house payment, including property taxes, insurance, and PMI.
| % of Income for Housing (Front DTI) | 28% | 35% | 40% |
|---|---|---|---|
| Monthly Income | $5,833 | $5,833 | $5,833 |
| Max Principal & Interest Payment | $1,215 | $1,587 | $1,852 |
| Taxes (estimated) | $200 | $200 | $200 |
| Homeowner’s Insurance (Estimated) | $100 | $100 | $100 |
| Private Mortgage Insurance | $119 | $155 | $181 |
| Max Total Monthly Payment | $1,633 | $2,042 | $2,333 |
| Estimated Home Price | $203,000 | $265,000 | $310,000 |
*Assumes 10% down, 30-year fixed conventional loan, 7% example interest rate, standard PMI rates. A 40% housing DTI may only be available using an FHA loan.
How Loan Programs Can Affect Affordability
The type of loan you choose plays a major role in how much home you can afford. Conventional loans, FHA loans, VA loans, and USDA loans each have different down payment and credit score requirements.
A conventional loan typically requires at least 5% down (3% for first-time buyers), while an FHA loan allows you to put as little as 3.5% down. VA and USDA loans offer 0% down payment options, but they come with eligibility requirements. For a VA loan, you need eligible military service; for USDA loans, buyers need to purchase in an approved rural area and be within income limits.
A larger down payment means a lower loan amount, which reduces your monthly mortgage payment and could eliminate PMI costs.
For example, putting 20% down on a conventional loan eliminates PMI altogether, which could save you hundreds of dollars per month, as well as qualify you for a higher home price.
Real-world home price estimates for a $70k salary
Here’s an example of how your loan program and down payment can impact how much you can afford.
| Loan Type | Est. Home Price | Down Payment | PITI Monthly Payment |
|---|---|---|---|
| Conventional | $275,000 | $13,750 (5%) | $2,200 |
| FHA | $275,000 | $9,100 (3.5%) | $2,220 |
| VA | $300,000 | $0 (0%) | $2,180 |
| USDA | $280,000 | $0 (0%) | $2,295 |
Assumes 30-year fixed conventional loan, 7% example interest rate, $300/month taxes and insurance, and standard PMI rates. All figures are estimates.
Other Factors That Affect Affordability
Credit Score and Interest Rates
Your credit score directly impacts the interest rate you’ll receive on your mortgage. A high credit score will help you qualify for a lower rate, which can save you thousands of dollars over the life of your loan.
| Interest Rate | Est. Home Price |
|---|---|
| 5% | $315,000 |
| 6% | $285,000 |
| 6.5% | $270,000 |
| 7% | $260,000 |
| 7.5% | $245,000 |
Assumes 30-year fixed conventional loan, 10% down, $300/month taxes and insurance, standard PMI rates, $500 in monthly debt payments, 36/43 ratios.
If your score is above 740, you’re more likely to secure an interest rate near current rate levels. A lower score, such as 620, could mean an interest rate closer 0.5% higher than prevailing rates, reducing your maximum home affordability by $30,000 to $40,000.
If your credit score isn’t where you want it to be, improving it before applying for a mortgage can make a big difference. Paying down credit card balances, making on-time payments, and avoiding new debt in the months leading up to your application can help boost your score.
Existing Debt and Monthly Expenses
Your debt obligations also play a significant role in determining home affordability. If you have no monthly debt, you could potentially afford a home at the top of your budget range.
However, if you have $500 in monthly debt payments, your affordability could drop by $20,000 to $30,000. If you owe $1,000 per month in debt payments, you might only be able to afford a home in the $200,000 range instead of $280,000.
| Monthly Debt Payments | Max House Payment | Est. Home Price |
|---|---|---|
| $250 | $2,250 | $275,000 |
| $500 | $2,010 | $260,000 |
| $750 | $1,750 | $220,000 |
| $1,000 | $1,500 | $180,000 |
| $1,500 | $1,010 | $110,000 |
Assumes 30-year fixed conventional loan, 10% down, 7% example rate, $300/month taxes and insurance, standard PMI rates, $500 in monthly debt payments, 36/43 ratios.
How Lenders Calculate Home Affordability
What you spend on a home depends on how much a lender qualifies you to spend on housing each month, as well as how much you’re comfortable spending.
Lenders assess affordability by looking at:
Front-end ratio (housing ratio): Shows the percentage of your gross monthly income spent on housing costs; most lenders prefer it to be 28% or less, but allow figures up to and exceeding 40%.
Back-end ratio (total DTI): Includes all monthly debt payments (like loans and credit cards); lenders typically want it below 36%, but some allow up to 50% or higher.
If you earn $70,000 per year, this translates to a gross monthly income of approximately $5,833, allowing a home payment of $1,633 using the 28% guideline. This isn’t much of a payment in today’s market, which is why most borrowers exceed this recommended level.
If you have little to no other debt, you may be able to spend a larger percentage of your income on housing, allowing you to afford a more expensive home.
Related: The 28/36 Rule: How Realistic Is It?
Expanding Your Budget: Increasing Home Affordability
If the numbers don’t align with your homeownership goals, there are strategies you can implement to increase your purchasing power.
Reducing debt before applying for a mortgage is a major step in improving your affordability. Paying off credit card balances or an auto loan can free up hundreds of dollars in monthly expenses, making it easier to qualify for a larger mortgage.
Additionally, boosting your savings to make a larger down payment can significantly improve your loan options. Many buyers aim for 20% down, but even increasing from 5% to 10% can make a difference in the amount you qualify for and lower your monthly payment.
Is Buying a Home on a $70K Salary Right for You?
Buying a home on a $70,000 salary is possible, but whether it’s the right time depends on your full financial picture.
You’re in a good position if:
You have a low debt-to-income ratio.
You’ve saved for a down payment and closing costs.
Your credit score qualifies you for favorable loan terms.
You may need to wait if:
You have high existing debt.
You haven’t saved enough for upfront costs.
Your credit score needs improvement.
Final Thoughts
A $70K salary can afford you a home in the $200K–$310K range, depending on your financial profile. Lenders consider income, debt, credit score, and down payment when determining affordability.
To maximize your home-buying power, focus on saving for a larger down payment, improving your credit score, and reducing debt before applying for a mortgage.
If you’re serious about buying a home, the next step is to get pre-approved for a mortgage. This will give you a clearer picture of what you can afford and help you confidently start your home search.
