How much house can I afford on $50K?

Buying a home is a huge milestone, but it can be challenging if you’re earning $50,000 per year. If you're earning $50,000 a year, you're earning less than the national average, which the Social Security Administration reports is $63,932. As of November 2025, the national median home price is $433,261. While your income matters, it’s not the only factor lenders consider when you apply for a mortgage. Your credit, monthly debt load, how much you have saved for a down payment, and the local housing market all come into play.

Let's examine the type of home you can realistically afford with a $50,000 annual salary.

Your estimated budget: Between $150k and $200k

How much house can I afford with a $50K salary? You can likely afford a home priced between $150,000 and $200,000. That’s based on estimates from the Rocket Mortgage® home affordability calculator and assumes a few key factors: 

• Purchase location: Detroit
• Yearly income before taxes: $50,000
• Cash to buy: $15,000
• Monthly debt: $300
• Credit score: 720+

In that scenario, you could comfortably afford to buy a home that costs as much $158,487, with a monthly payment of $1,218.¹ If you were to stretch, you could afford a home that costs as much as $199,081, with a monthly payment of $1,491.

Keep in mind that home affordability depends on more than just income. Your credit score, total debt, down payment, and local market prices all play a role in what you can comfortably afford. For example, the same $50,000 income will go further in a city like Pittsburgh or St. Louis than in Seattle or Miami.

If your credit score is lower or you're buying in a more expensive market, your affordability range might fall closer to $125,000 to $175,000. But there's still a path toward homeownership, especially if you explore low-down-payment loan options or down payment assistance programs.

Ultimately, the best way to know how to budget for a house is to use the Rocket Mortgage affordability calculator or speak directly with a Home Loan Expert. They can help you estimate a price range and guide you toward the next steps.

Estimating how much house you can afford on a $50K salary

Your annual salary matters, but it’s just one piece of the puzzle. Lenders look at your entire financial picture to determine how much house you qualify for. That means they'll consider not only your income but also your down payment, outstanding debts, and credit history.

Each of these factors influences your monthly mortgage payment and your ability to qualify for a loan. Better credit can help you secure a lower interest rate, while a larger down payment reduces how much you need to borrow. On the other hand, high monthly debt payments can limit your approved loan amount because they increase your debt-to-income ratio (DTI).

Because everyone’s financial situation is different, it’s helpful to start with a general formula for estimating affordability. The following examples break down what those numbers might look like in real life.

The 28/36 rule

When trying to determine how much house you can afford, the 28/36 rule is a common guideline lenders use.

The first number represents your front-end ratio, which measures how much of your monthly income should go toward housing costs. This includes your mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance. According to this rule, no more than 28% of your monthly income should go toward those housing-related expenses.

The second number represents your back-end ratio. This figure includes your total monthly debt obligations, including housing costs, plus things like credit card payments, car loans, student loans, and other recurring debts. Ideally, no more than 36% of your pretax income should go toward all of these combined.

Here’s how that looks for someone earning $50,000 a year:

• Monthly income: $50,000 ÷ 12 = $4,167
• Front-end ratio: $4,167 × 0.28 = $1,167 for housing costs
• Back-end ratio: $4,167 × 0.36 = $1,500 for total debt payments

However, these are just guidelines, not hard limits. Some loan programs, like FHA and VA loans, allow for higher DTI ratios, while conventional loans tend to have stricter limits. While it may be tempting to stretch your budget to qualify for a larger home, doing so could ultimately lead to more financial stress in the long run.

Mortgage breakdown on a $50K salary

Your monthly mortgage payment can vary quite a bit depending on the loan details, and two of the biggest factors are your interest rate and down payment amount.

For example, let’s look at a $150,000 home purchased with a 30-year fixed-rate loan in Detroit, with a ZIP code of 48201.²

According to the Rocket Mortgage calculator, the sample payments below include about $114 for property taxes and $76 for homeowners insurance each month. You’ll see how even small changes in the interest rate or down payment can make a noticeable difference in your total payment.

You’ll also notice that lowering your interest rate even by half a percentage point or increasing your down payment can help reduce your monthly payment and long-term interest costs. On the other hand, higher rates or smaller down payments can increase your monthly payment and make the same home less affordable.

That’s why it’s important to experiment with your own numbers using the mortgage calculator by Rocket Mortgage. As you calculate your mortgage, budget for additional expenses, such as homeowners association fees and mortgage insurance, to have a complete picture of your housing costs.

Factors that affect how much house you can afford

Here are some of the most important factors lenders look at to determine how much house you can afford.

• Credit score: The minimum credit score requirements vary by loan program. The minimum credit score requirement for conforming conventional loans was recently dropped, though lenders still will review your credit history. Generally, the higher your score, the lower your interest rate and the more home you can afford.
• Down payment: The typical down payment range is anywhere from zero to 20%, depending on your loan type and eligibility. Reducing your down payment further reduces the size of your loan and your monthly payment.
• Closing costs: Closing costs cover expenses such as appraisal fees, title insurance, and lender charges, and typically range from 3% – 6% of your loan amount. Some buyers can roll part of these fees into their loan or negotiate for the seller to cover closing costs.
• DTI: Your DTI compares your total monthly debt payments to your gross monthly income. As a reminder, the 28/36 rule suggests keeping housing costs under 28% of your income and total debt under 36% of your income.
• Mortgage rates: Your interest rate has a direct impact on both your monthly payment and the total cost of your loan. For this reason, some borrowers choose to purchase discount points to lower their rate up front.
• Mortgage terms: The length of your loan also affects affordability. A 30-year loan term spreads out payments for a lower monthly cost but costs more overall. A 15-year term has higher monthly payments but allows you to own your home sooner and pay far less in interest overall.
• Maintenance and repairs: Homeownership comes with ongoing expenses, so a good rule of thumb is to budget about 1% of your home’s value per year for maintenance and repairs. 
• Taxes and insurance: Property taxes and homeowners insurance vary widely by location and property value. These costs are often added to your monthly mortgage payment through an escrow account. 
• Location and amenities: Where you buy and what comes with your home can also influence the cost. For example, living in a desirable school district may lead to higher home prices.

Mortgage options with a $50K salary

If your annual income is $50,000, there are several mortgage options available to make homeownership more affordable. Some loans require a minimal down payment or have more flexible credit requirements, while others reward strong credit and steady income with lower interest rates. Understanding your options can help you find the loan that best fits your budget and long-term goals.

Loan types

• Conventional mortgages: Conventional loans typically require a minimum 3% down payment for a fixed-rate loan and 5% for an adjustable-rate loan.³ If you put down less than 20%, you’ll pay private mortgage insurance (PMI) until your loan balance drops below 80% of the home’s value.
• FHA loans: Backed by the Federal Housing Administration, FHA loans accept lower credit scores. While FHA guidelines technically accept credit scores as low as 500 with a 10% down payment, Rocket Mortgage^® requires a minimum score of 580 and a down payment of at least 3.5%.⁴ FHA borrowers also pay up-front and annual mortgage insurance premiums.
• VA loans: Available for eligible military personnel, veterans, and their surviving spouses, VA loans don’t require a down payment or mortgage insurance.⁵ However, there is a funding fee between 1.4% and 3.3%, which can be rolled into the loan. 
• USDA mortgages: These loans, backed by the U.S. Department of Agriculture, are designed to help buyers purchase homes in eligible rural areas with no down payment required. They also tend to offer low interest rates and reduced mortgage insurance costs. However, Rocket Mortgage doesn’t currently offer USDA loans.

First-time home buyer programs

First-time home buyers earning $50,000 per year may be eligible for home buyer assistance programs available through states, counties, and other parties. These programs often provide down payment and closing cost assistance, favorable interest rates, or special tax credits to make homeownership more accessible.

Each program sets its own rules, and income limits and property price limits typically apply. It’s a good idea to research what’s available in your area.

Some lenders also offer unique programs for first-time buyers, like One+ by Rocket Mortgage^®.⁶ This program helps reduce your upfront costs and makes monthly payments more manageable.

Tips to afford a house on $50K a year

If you’re earning $50,000 a year, it’s normal to wonder whether homeownership is within reach, especially as home prices continue to rise. Fortunately, there are several ways to make buying a home more affordable:  

• Improve your credit. A higher credit score helps you qualify for a lower interest rate, which reduces your monthly payment. To improve your credit score, focus on paying your bills on time and keeping your DTI low.
• Pay down current debt. Reducing your monthly debt payments improves your DTI and increases the loan amount you may qualify for.
• Explore extra income opportunities. Earning extra money through freelance work, tutoring, or a part-time job can strengthen your mortgage application.
• Search in more affordable areas. Expanding your home search to more affordable neighborhoods or nearby towns can stretch your budget further. 
• Save for a larger down payment. The more you put down, the less you’ll need to borrow and the lower your monthly payment will be.
• Pick your mortgage program carefully. Compare different loan types to find the one that best fits your situation. An FHA loan might be easier to qualify for with a modest income, while a VA loan could eliminate the down payment entirely if you’re eligible.
• Consider a co-signer or co-borrower. Applying with someone who has a higher income or credit score can improve your mortgage approval chances and allow you to qualify for a larger loan. 
• Maximize assistance programs. Look into down payment and closing cost assistance programs through your state, county, or city. These programs can offer grants, forgivable loans, or tax credits that make buying more affordable.
• Get mortgage preapproval. Getting mortgage preapproval gives you a better idea of your price range and shows sellers that you’re a serious buyer.

The bottom line: Home affordability is within reach on a $50K salary

Buying a home on a $50,000 salary is possible with the right strategy. Understanding how your credit score, down payment, debt, and loan type affect your budget will help you make homeownership a reality.

Remember, your salary is only one part of the equation. With the right tools and guidance, you can find a home that fits your lifestyle and long-term goals. When you're ready to take the next step, apply for a mortgage with Rocket Mortgage^® and see how much house you can afford based on your unique situation.

¹ This is an estimate only and is not a substitute for the qualification process for credit. Results are based on a 30-Year Fixed conventional mortgage with an interest rate of 5.88% and closing costs that are 2.9% of the loan amount. Most mortgages require that your debt-to-income ratio doesn't exceed 43%. Property taxes are based on the tax rate of the location entered. If a rate isn't found, we've assumed a 1.25% tax rate. Homeowners insurance is based on average insurance costs of the location entered. If an average isn't found, we've assumed a payment of $67 a month. Results are not a commitment to lend and don't guarantee an approval or denial for credit.

² The Rocket Mortgage mortgage calculator is for estimation purposes only. Results do not reflect all loan programs and are subject to individual program loan limits. Qualification, rates and payments will vary based on timing and individual circumstances. This is not a commitment to lend.

Here’s a payment example based on an average home price and the most common loan type:

Loan amount: $350,000

Loan type: 30-Year Fixed

Interest rate: 6.38% (6.65% APR)

Monthly payment: $2,183.55

Points: 1.875 points, costs due at closing $6,562.50

Loan-to-value (LTV): 80.00%

One point is equal to one percent of your loan amount. Payment does not include taxes and insurance. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply. Rates shown are valid on publication date of January 9, 2026.

If you didn’t enter taxes and insurance amounts, an estimate of your taxes is based on the state selected. This does not include all fees.

³ The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.

⁴ To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

⁵ Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

⁶ Client will be required to pay a 1% down payment, with the ability to pay a maximum of 3%, and Rocket Mortgage will cover an additional 2% of the client’s purchase price as a down payment, or $2,000. Maximum grant amount is $7,000. Offer valid on primary residence, conventional loan products only. Maximum loan amount of $350,000. Cost of mortgage insurance premium passed through to client effective January 2, 2024. Offer valid only for home buyers when qualifying income is less than or equal to 80% area median income based on county where property is located. Not available with any other discounts or promotions and cannot be retroactively applied to previously closed loans or loans that have a locked rate. This is not a commitment to lend. Rocket Mortgage reserves the right to cancel/modify this offer at any time. Additional restrictions/conditions may apply.