If you make $70,000 a year, you can likely afford a home that costs between $247,000–$302,000. When you make $5,833 a month in gross income and owe less than about $500 in monthly debt, you can likely afford a $1,633 monthly mortgage payment.
Exactly how much house you can afford depends on how much debt you have, your down payment amount, what your credit score is, and where you live — as well as the type of home loan you get. Your best move is to run through your numbers with a loan officer and talk with a local real estate agent to help you find a home in your price range.
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🔑 Key takeaways:
- If you make $70k a year, you can afford to spend about $1,633 on a monthly mortgage payment — as long as you have less than $500 in other monthly debt payments.
- You may be able to afford a $302,000 home in a low cost of living area.
- You may be able to afford a $247,000 home in a high cost of living area.
🏡 Need more money for your down payment? When you work with Clever, you can keep more money in your pocket by selling for 1.5%—roughly half the traditional fee. And buyers who qualify get cash back at closing. Clever matches buyers and sellers with top-rated, local agents from well-known brokerages, including Century 21, RE/MAX, Coldwell Banker, and Keller Williams. Join thousands of happy homeowners and get your agent matches today.
What mortgage can I afford on $70k a year?
When you make $70k a year, you can likely afford a mortgage up to $302,000 with current interest rates. How much debt you have and how much you spend on your down payment will be a big factor in how much home you can afford on $70k a year. The bigger your down payment, the more house you can afford—assuming you’re willing to make the same monthly mortgage payments either way.
A 20% down payment is standard for many house purchases. While you can put down less than that, you’ll have to purchase private mortgage insurance (PMI) if you don’t do 20%. PMI is usually 1% of the purchase price per year. PMI protects the lender in case you default.
Here’s a look at how different down payment percentages affect how much home you can afford on a $70,000 income. In this example, we’ll keep your monthly mortgage payments to 28% of your gross monthly income as recommended by many financial experts.[1]
| Salary | Monthly mortgage payment | Down payment | How much house you can afford |
|---|---|---|---|
| $70,000 | $1,633 | $6,720 (~3%) | $224,000 |
| $70,000 | $1,633 | $23,800 (~10%) | $238,000 |
| $70,000 | $1,633 | $60,400 (~20%) | $302,000 |
Remember that while a smaller down payment can get you a house sooner, you’ll likely have a larger balance that you have to pay off. Over the term of your mortgage, that will likely mean that you’ll have spent more on interest than if you had put up a larger down payment. You can make up for that by making extra mortgage payments or by refinancing your mortgage later on.
For example, if you buy a house for $300,000 with a down payment of 20%, your total interest over a 30-year period at 6.32% will be nearly $296,000. However, if your down payment on the same house is just 3%, your total interest will be close to $359,000.
Mortgage affordability calculator
Determine your maximum monthly mortgage for a $70,000 salary
To calculate your maximum monthly mortgage payment, multiply your gross monthly income by 0.28. On a $70,000 income, your monthly mortgage payment should be no more than $1,633.
The 28/36 rule is used by many finance experts. It states that your monthly mortgage payment shouldn't be higher than 28% of your gross monthly income (i.e., your income before taxes and deductions). Your total debt shouldn't exceed 36% of your monthly income.
Many lenders use this rule too. They want to see housing expenses below 25–28% of your monthly pre-tax income and a total debt-to-income ratio below 33–36%.[2]
Similarly, to figure out your maximum monthly payments for all debts, multiply your gross monthly income by 0.36. On an income of $70,000, your total monthly debts shouldn’t exceed $2,099.
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How debt affects how much house you can afford when you make $70k a year
Lenders prefer to see a total DTI (including both mortgage and non-mortgage debts) ratio below 36% before approving you for a mortgage. While some lenders will approve mortgage applicants with a DTI up to 43%, keep in mind that your interest rates may increase.
As you can see below, if you adhere to the 28/36 rule, your total monthly debt shouldn’t exceed $2,099. However, if you qualify for a mortgage with a DTI of 43%, then your total monthly debt increases to $2,508. Note that because your mortgage payments stay at 28% of your monthly income, they don’t increase even if your DTI increases.
| Salary | Monthly mortgage | Monthly debt | Total monthly debt | DTI |
|---|---|---|---|---|
| $70,000 | $1,633 | $466 | $2,099 | 36% |
| $70,000 | $1,633 | $759 | $2,392 | 41% |
| $70,000 | $1,633 | $875 | $2,508 | 43% |
Ideally, you should target a DTI of up to 36%, even if you technically qualify for a mortgage with a higher DTI. You should also aim to maintain 28% of your gross monthly income toward your mortgage. Lowering the percentage of your debt payments that go toward your mortgage will lower the amount of house you can afford.
On a $70,000 income, here’s the total house payment you can afford to pay every month based on different levels of mortgage and other debt while maintaining a DTI of 36%.
| Salary | Monthly debt | Monthly mortgage payment | How much house you can afford |
|---|---|---|---|
| $70,000 | $466 | $1,633 | $302,000 |
| $70,000 | $566 | $1,533 | $284,000 |
| $70,000 | $666 | $1,433 | $265,000 |
| $70,000 | $766 | $1,333 | $247,000 |
Keep in mind that you should also have enough money saved to cover all your expenses for 3–6 months, so don’t use all of your savings on your down payment. This nest egg should be in a bank account where you can easily access it in case of an emergency, not in an investment account. You should also think twice before using your 401k or IRA on a down payment.
How to afford more house with a $70k salary
Making $70,000 a year doesn’t buy as much house as it used to, especially given high interest rates and elevated real estate prices. However, there are some things you can do to make your dollar stretch further when purchasing a home.
1. Choose the right mortgage for your situation.
Most conventional mortgages have income, down payment, and credit score requirements that may not fit your situation. Consider looking for more specialized mortgages, especially if you’re a first-time home buyer, that are tailored to buyers with lower incomes or credit scores.
For example, government-backed mortgages, like Federal Housing Administration (FHA) and Veterans Affairs (VA) loans, are available to eligible home buyers. They come with lower down payment requirements and interest rates, which can reduce how much money you need to spend each month on your mortgage.
Similarly, US Department of Agriculture (USDA) loans are available to low-income rural and suburban buyers and come with $0 down payments and low interest rates. In high-cost areas, $70,000 may qualify you for this type of mortgage.
2. Increase your credit score.
Whether you’re applying for a conventional loan or a government-backed loan, lenders will look at your credit score when determining whether to approve you for a mortgage. With a higher credit score, you’ll be eligible for more favorable terms, including lower interest rates.
For a conventional loan, each lender has their own criteria. But in general, you will need a FICO score of at least 620. You’ll need a similar score for a VA loan and often even higher (640) for a USDA loan.
For an FHA loan, you'll need a credit score of 580 or above to qualify for a low down payment: meaning you can buy a house and only put down 3.5%. If your credit score is below 580, you may still qualify for the loan, but you’ll have to put down 10%.
3. Save up more for your down payment.
You should aim to put down 20% of the cost of the home for a conventional mortgage. If you're purchasing an investment property, many lenders will require you to put down 25%.
If you put down less than this, you'll usually need to get private mortgage insurance (PMI) — unless you're getting a government-backed loan like a VA, USDA, or FHA loan. PMI will increase your monthly mortgage payments.
If you're a first-time homebuyer, you may qualify for certain down payment assistance programs. Look at this list provided by HUD of local home buying programs in your state.
Another great way to offset these upfront costs is through Clever's Cash Back program, which can help you get money back when you purchase a home.
4. Extend the length of your mortgage loan.
The length of your mortgage loan will impact a couple of things: your monthly payment, and how much interest you pay over time. The longer your loan term, the lower your monthly payments will be, but the more you’ll pay in interest over time.
30-year vs. 15-year mortgage loan payments
| 15-year conventional fixed rate loan | 30-year conventional fixed rate loan | |
|---|---|---|
| Monthly payment | $1,929 | $1,389 |
| Interest paid over lifetime of loan | $123,253 | $276,191 |
As you can see, your monthly payment for a 30-year loan is significantly lower than the 15-year loan. But you'll end up paying $152,938 more in interest over the lifetime of the loan.
5. Move to an area with lower property taxes.
If you’re flexible about where you live, you may want to choose a city or county with low property taxes. In areas with high property taxes, your monthly tax bill can be as much as one-half of your mortgage payment.
However, property tax rates are calculated differently depending on where you live in the state and the assessed value of the property.[3]
Deductions and exemptions can also reduce your tax burden. While the numbers above can give you a general idea of how much to budget for taxes, the exact figure will depend on your specific circumstance.
6. Choose to buy a house where home prices are lower on average.
Having flexibility in where you live will go a long way in determining how much house you can afford. A $70,000 income will get you a lot more real estate in Cleveland, for example, than it would in New York City. A Clever Real Estate study found that first-time homebuyers need an income of $120,000 to afford the median priced home in the United States. But your money will go a lot farther in cities like Pittsburgh than it will in Los Angeles.
You can explore the most affordable places to live in the U.S. to get more house for a better price. Just a lower cost of living overall in a city goes a long way toward how far you can stretch your budget.
Final take: Get a good agent to make your money count
As shown above, you can likely afford a home of around $247,000–$302,000 on a salary of $70,000. But knowing how much of a mortgage you can qualify for and knowing how much home you can actually afford are two different questions. It can be tempting to look for a house at the very top of your qualifying threshold, but it’s a better bet to land on the lower end or somewhere in the middle if you can.
Consider the following questions when determining how much house you’re comfortable buying:
- Are you able to afford a 20% down payment and closing costs?
- Will you have enough money leftover each month for emergencies and maintenance?
- Can you keep your mortgage payments to under 28% of your gross monthly income?
- Can you pay off other debts first to keep your total DTI under 36%?
- Will other housing expenses (utilities, HOA fees, insurance) stretch your budget?
Ideally, you should aim to keep your monthly mortgage payments to 28% of your gross monthly income and your total debt to 36%. If you stay within those parameters, you’ll have a mortgage payment you can afford.
Talking to an expert can help you determine if purchasing a house is the right decision. First, meet with a lending officer to go over your financial numbers in more detail. Once you know what you can realistically afford (and qualify for), a real estate agent can go over what homes are available on your budget and whether there are steps you can take to make that budget stretch further. Clever is a great option for finding a vetted, reliable agent. Clever also negotiates on your behalf so you can get full service and sell for just 1.5%. Get connected to a Clever agent in your area to see if it’s the right fit.