How Much House Can I Afford on a $100K Salary? (Real Bank Math)

The Real Bank Math on $100K

Banks use your gross monthly income — $8,333/month at $100K — and apply the 36% back-end DTI rule for conventional loans, or 43-50% for FHA.

The Debt Killer

Every $500/month in existing debt (car payment, student loans, credit cards) reduces your buying power by approximately $75,000-$90,000. Banks subtract your existing minimums before calculating how much mortgage you can carry.

Credit Score Impact at $100K

Your income qualifies you. Your credit score determines the rate — and the rate determines how much house that income can actually buy.

• 620 score @ 7.5%: Max home ~$340,000 — monthly PITI ~$2,800
• 680 score @ 6.9%: Max home ~$380,000 — monthly PITI ~$2,950
• 740 score @ 6.1%: Max home ~$440,000 — monthly PITI ~$3,000

Same income. Same monthly payment. $100,000 more home — purely from the credit score difference.

Not financial advice. Educational content based on 23 years of mortgage industry experience. Always consult a licensed professional for your specific situation.