How much house can I afford on a $60K salary?

Buying a home is a significant step, and if you earn around $60,000 a year, you may be wondering how to approach it. Your income matters, but your credit score, debt, down payment size, and loan type also determine what you can afford.

The median household income in the U.S. was $83,730 in 2024, meaning an income of $60,000 is below the national median. The national median home price is $435,285, so buyers earning $60,000 will likely need to look for a more affordable home. First-time home buyers will also want to learn about factors affecting how much house you can afford.

Your estimated budget: Between $170,000 and $220,000

The Rocket Mortgage® affordability calculator shows that a buyer earning $60,000 can afford to buy a home for $170,666.¹ That assumes you’re buying a home in Detroit, have $15,000 cash to buy, your monthly debt payments are $500, and your credit score is 720 or higher, and a debt-to-income ratio (DTI) of 36%.

Stretching your budget may allow you to afford a home that costs $219,380, with a monthly payment of $1,628 and a DTI of 44%.

Of course, every situation is different. If you carry more debt, have a smaller down payment, live in a more expensive market, or have a lower credit score, your approved loan amount may be lower. Meanwhile, if you carry very little debt, have strong credit, and a larger down payment, you might qualify for a larger mortgage.

Using the Rocket Mortgage affordability calculator or speaking with a Home Loan Expert is the best way to explore your borrowing options and set a budget for buying a home.

Estimating what home price you can afford on a $60K salary

The amount you qualify to borrow depends on more than just your salary alone. It’s also determined by how much you can put down, your monthly debt payments, your credit score, the loan type, and current market conditions. The sections below walk you through how to figure out how much money you need to buy a house.

The 28/36 rule

The 28/36 rule consists of the front-end ratio and the back-end ratio. Here’s how each one works:

• Front-end ratio: No more than 28% of your monthly gross income should go toward housing costs, like principal, interest, taxes, and insurance, and mortgage insurance.
• Back-end ratio: No more than 36% of your monthly income should go toward total debt payments, like housing costs and any other recurring debt.

If you earn $60,000 per year, your monthly income is around $5,000. That means you shouldn’t spend more than $1,400 on housing costs and $1,800 on total debt payments each month. Of course, these are just guidelines, not strict rules.

Mortgage breakdown on a $60K salary

Your monthly payment for the same home can vary significantly depending on your interest rate, down payment, property taxes, and homeowners insurance, and other fees.

To illustrate, here are three scenarios for a $150,000 home with a 30-year fixed loan in Detroit, with a ZIP code of 48201. These examples include $114 in property taxes and $76 in homeowners insurance per month, all calculated using the mortgage calculator by Rocket Mortgage.²

This table shows that even small changes can affect your monthly costs. It also highlights the importance of budgeting for additional expenses, such as HOA fees and private mortgage insurance (PMI).

Factors that affect how much house you can afford

When you’re planning to buy a home, many factors affect what you can afford:

• Credit score: A higher credit score typically results in a better interest rate and lower monthly payment. Requirements vary by lender and program. Conventional loans recently dropped a specific minimum credit score requirement. However, lenders will still review and consider your credit history.
• Down payment: The size of your down payment reduces the amount you need to borrow. For conventional loans, putting down at least 20% helps you avoid PMI and lowers your monthly payment.
• Closing costs: Closing costs typically range from 3% – 6% of the loan amount.
• DTI: Your DTI examines how much of your monthly income is allocated to debt payments.
• Mortgage rates: The interest rate affects both your monthly payment and the total interest you pay over the life of the loan. Some buyers pay points up front to secure a lower rate.
• Loan term: A 30-year loan term results in lower monthly payments but more interest over time, while a 15-year loan has higher payments but less interest paid overall.
• Maintenance and repairs: Owning a home means ongoing maintenance you’ll need to plan for. A common guideline is to set aside about 1% of the home’s value each year for maintenance.
• Taxes and insurance: These vary depending on your location, property value, and local tax rates.
• Location and amenities: Prices, HOA fees, and taxes differ by geographic area.

Mortgage options with a $60K salary

If you’re earning $60,000 a year, different mortgage types could put homeownership within your reach. Understanding each type helps you choose the one that best suits your situation.

Loan types

• Conventional: Conventional loans are private loans not backed by the government. Conventional mortgages that conform to federal requirements can be sold to Fannie Mae or Freddie Mac and require a minimum down payment of 3%³ for a fixed-rate mortgage and 5% for an adjustable-rate mortgage. If your down payment is below 20%, you’ll have to pay PMI.
• FHA: FHA loans are backed by the Federal Housing Administration and are best for low-income buyers with lower credit scores. Rocket Mortgage offers FHA mortgages with down payments as low as 3.5% to borrowers with a minimum credit score of 580.⁴ Other lenders may offer FHA loans with a 10% down payment to borrowers with a credit score between 500 and 579. You have to pay both up-front and annual mortgage insurance with an FHA loan.
• VA: VA loans are available for active military personnel, veterans, and their surviving spouses.⁵ Backed by Veterans Affairs, VA mortgages offer 100% financing and don't require mortgage insurance, although a VA funding fee is applicable, ranging from 1.25% to 3.3%.
• USDA: USDA loans are backed by the U.S. Department of Agriculture for eligible rural properties. If you meet the property and income requirements, you could buy a home with no down payment. Rocket Mortgage currently does not offer USDA mortgages.

First-time home buyer programs

First-time home buyer programs from state or local governments or organizations can help you afford a down payment and closing costs. These often provide down payment assistance, tax credits, or loans with better terms.

Be sure to check income and loan limits in your specific location. You also can ask your lender if it offers programs to make your monthly payments more manageable.

Some lenders also offer unique programs for first-time buyers, such as One+ by Rocket Mortgage.⁶ This program helps reduce your up-front costs and makes monthly payments more manageable.

Tips to afford a home on a $60K salary

Here are some steps you can take to improve your odds of qualifying for a mortgage:

• Improve your credit: Better credit can lead to a lower interest rate, making your monthly payments more affordable.
• Pay down existing debts: Reducing your total debt lowers your DTI and allows you to get mortgage approval for a higher amount.
• Save for a larger down payment: A larger down payment will result in lower monthly payments and more favorable loan terms.
• Look in more affordable locations: Broaden your search to nearby cities or neighborhoods where housing costs are lower.
• Explore different property options: You can also consider options such as townhouses, condos, or buying auction properties. This may allow you to buy at a lower price point than purchasing a single-family home.
• Consider buying with someone else: Applying with a friend or co-borrower could improve your income or credit profile and make qualifying easier.
• Choose your mortgage program wisely: Choose a loan type that fits with your credit score and budget.
• Maximize assistance programs: Look for state or local down payment assistance or lender-specific programs that reduce upfront costs.
• Get mortgage preapproval early: Obtaining mortgage preapproval provides a clear budget, strengthens your offer, and demonstrates to sellers that you're serious.

The bottom line: Homeownership with a $60K salary is possible

Buying a home with a $60,000 salary in today's market is possible. Your salary is only part of what lenders consider, and your down payment, credit score, and DTI matter as well. Additionally, numerous programs are available to help low- to moderate-income buyers make homeownership a reality.

When you’re ready to take the next step, apply for a mortgage with Rocket Mortgage.

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% (6.66% APR)
• Monthly payment: $2,183.55
• Points: 2 points, costs due at closing $7,000.00
• 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 12, 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.

³The 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.

⁴To 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.

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

⁶Client 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.