How Much Income Do I Need to Buy a House?

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Homeownership isn’t only for the wealthy. Your income matters when you buy a house, but figuring out how much you need to earn is not always clear.

Most buyers use a mortgage to cover most of the purchase price. Lenders look at your debt-to-income (DTI) ratio to decide how much they will loan you. If you have student loans, car loans, or credit card debt, you may need a higher income to show that you can manage your bills. Your lender compares what you earn and what you owe to make sure you can handle a monthly mortgage payment.

If you’re unsure of what to expect, speak with a lender and get preapproved or prequalified. They will review basic financial details and give you an estimate of how much you can borrow. This number can change during underwriting, so use it as a guide, not a guarantee.

How Do Lenders Check My Income?

If you are traditionally employed, you can provide pay stubs or W-2s to show recent earnings. Contract workers can use a 1099 form.
Self-employed buyers usually need to provide tax returns from the last few years to show steady income. Lenders often want more history because self-employment income can change from year to year.

You can also show income from commissions, bonuses, overtime, military benefits, alimony, court-ordered payments, investments, retirement accounts, or social security.

What Else Does a Lender Look At?

Your income and DTI are not the only factors. Lenders also review your credit score, the home’s price, and your down payment amount.

If your income is on the lower side but you have little debt and strong credit, you may still qualify. Be ready to show documents for all recurring expenses that may affect your ability to repay the loan.

There is no single income level required to buy a home. The best thing you can do is lower your debt before applying. Talk with your lender about your situation and what steps you can take to get ready for homeownership.