How can I qualify for a $300,000 loan?
How Much Do I Need To Make To Afford A $300,000 Mortgage? Based on the 28% rule, you shouldn't put more than 28% of your monthly income toward your mortgage payment. By this standard, you should make at least $7,150 a month or nearly $86,000 a year before taxes: $7,150 x . 28 = $2,002 in monthly mortgage payment.
Securing a $300k loan typically requires a solid credit score, comprehensive financial documentation, and a well-detailed business plan. Lenders will assess your ability to repay, looking at factors like revenue, profit margins, and existing debts.
The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.
An annual income of about $90,000 could allow you to afford a $300,000 mortgage, assuming you don't have other significant debt, such as student loans. But how much house you can afford will depend on multiple factors, including credit history and how much you have saved for a down payment, to name a couple.
So, if you're buying a home for $300,000 you'll need at least $60,000 to cover a 20% deposit.
Annual percentage rate (APR) | Monthly payment (15-year) | Monthly payment (30-year) |
---|---|---|
7.00% | $2,696.48 | $1,995.91 |
7.25% | $2,738.59 | $2,046.53 |
7.50% | $2,781.04 | $2,097.64 |
7.75% | $2,823.83 | $2,149.24 |
For a $250,000 home, you'll likely need a fair to good credit score: 740+: Best rates and terms. 680-739: Good rates, still very good affordability. 620-679: Higher rates, may require larger down payment or FHA loan.
While there's no magic number, here's a general idea of what you'll need to afford a $350,000 home: Income: Aim for a combined gross annual income between $87,000 and $110,000. This is a starting point, and your actual needs may vary. Down Payment: A larger down payment means a smaller loan and lower monthly payments.
But, just how accurate are Credit Karma scores? They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use.
Putting 20% down on a $300,000 home requires a $60,000 down payment. However, this size of a down payment isn't typically required for a loan. It's worth exploring your options with several lenders to see how much house you can afford.
How to qualify for 250k loan?
High Credit Score: Having both a high personal and business credit score is essential to being approved for a large loan. It is essential to have a solid credit history with timely payments and a variety of credit kinds, such as credit cards, mortgages, and vehicle loans.
With a $55,000 annual salary, which translates to a gross monthly income of approximately $4,583, you could potentially afford a house priced between $165,000 to $220,000, depending on your financial situation, credit score, and current market conditions.

The 28% rule
To gauge how much you can afford using this rule, multiply your monthly gross income by 28%. For example, if you make $10,000 every month, multiply $10,000 by 0.28 to get $2,800.
Federal Housing Administration (FHA) loans need at least a 580 FICO Score with at least a 3.5% down payment (which amounts to $10,500 on a $300,000 home). Conventional loans require a minimum FICO® Score of 620 along with a 3% down payment (which amounts to $9,000 on a $300,000 home).
Deposit requirements: You'll need to save a minimum deposit of 5% to 10% for a £300,000 mortgage. How much this figure will be depends on the value of the property, but a 10% deposit on a £300,000 house would be £30,000.
If all you're able to put together is $15,000 (which I acknowledge is still a lot of money), you can still buy a home. Leavitt says you'll want to find yourself a lender with low fees to keep your closing costs down.
Scenario | Down Payment | Estimated Income Needed |
---|---|---|
Conservative | 20% ($60,000) | $75,000 |
Moderate | 10% ($30,000) | $85,000 |
Aggressive (FHA Loan) | 3.5% ($10,500) | $95,000 |
Your total interest on a $300,000 mortgage
On a 30-year mortgage with a 7.00% fixed interest rate, you'll pay $418,527 in interest over the loan's lifetime.
The monthly mortgage payment on a $250,000 house typically ranges from $1,500 to $2,100, depending on your down payment, interest rate, interest payment, loan type, and whether property taxes and insurance are included.
You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
How much money do you need to make to buy a 250k house?
An annual income of about $76,000 should put you in the position to afford a $250,000 mortgage, assuming you have relatively little other debt. But exactly what amount you'll need to earn will depend on your interest rate, loan term, and debt level, among other factors.
For a score with a range between 300 and 850, a credit score of 670 to 739 is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO® Score☉ in the U.S. reached 715.
Typical requirements for a conventional loan include not just a minimum 3% down payment, as mentioned earlier, but also a credit score of at least 620, a maximum debt-to-income ratio (DTI) of 50%, and an income that can support both your monthly mortgage payment and other life expenses and bills.
On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.
To make a 20% down payment on a property with a $350,000 mortgage, you would need $87,500. Many buyers make lower down payments, however. Some as low as 3%.