How much money do you need to make in order to afford a home?

04/14/2015

Using data from the National Association of REALTORS®, mortgage site HSH.com pinpointed the minimum salary required to pay for the principal loan amount, interest, taxes, and insurance payments on a median-priced home in some of the largest metro areas in the country.

Nationwide, buyers would need to earn about $51,247 to afford a median-priced home of $217,300, assuming a 20 percent down payment and a 4.37 percent interest rate, according to HSH.com.

However, the minimum income needed to afford a home in specific areas can be much higher. Here are the five metros of the 27 HSH.com analyzed where buyers would need to have the highest salaries to afford a median-priced home there:

  • San Francisco 
Salary needed: $145,351 Median home price: $744,400
 Monthly payment (PITI): $3,392
  • San Diego 
Salary needed: $101,683 
Median home price: $517,800 
Monthly payment (PITI): $2,373
  • Los Angeles 
Salary needed: $96,514
 Median home price: $481,900
 Monthly payment (PITI): $2,252
  • New York City 
Salary needed: $92,271 
Median home price: $410,800 
Monthly payment (PITI): $2,153
  • Boston 
Salary needed: $84,476 
Median home price: $399,900
 Monthly payment (PITI): $1,971

On the other hand, these are the metros that would require the least amount of salary to purchase a median-priced home there:

  1. Pittsburgh 
Salary needed: $32,373 
Median home price: $136,700 
Monthly payment (PITI): $755
  2. Cleveland 
Salary needed: $33,909 
Median home price: $129,900 
Monthly payment (PITI): $791
  3. Tampa 
Salary needed: $35,732 
Median home price: $145,000 
Monthly payment (PITI): $834
  4. Cincinnati 
Salary needed: $35,765 
Median home price: $149,000 
Monthly payment (PITI): $835
  5. St. Louis 
Salary needed: $35,800
 Median home price: $150,200
 Monthly payment (PITI): $835

Source: “The Salary You Must Earn to Buy a Home in 27 Metros,” HSH.com (Dec. 1, 2014)



Loan Center

Checklist

What you will need to ensure a smooth home mortgage process.

Loan Options

There are several loan options available when purchasing a home.

Down Payment Assistance

Find out more about special programs and who qualifies.

Calculator

Wondering how much you can finance?

Testimonials

Premier Nationwide Lending has completely exceeded our expectations in the home loan process. We are building our 3rd home and they have gone above and beyond to ensure the best loan product for our needs, as well as saved us a lot of money! When the builder’s lender said a loan was not available, Premier Nationwide Lending’s loan officer worked hard to find that it was indeed available and made it a reality for our family. Words cannot accurately express our gratitude for having been introduced to Premier. Our loan officer was a complete pleasure to work with and someone you can trust with such an important decision!

Mark & Deanna H. - Homebuyer

I’ve been a successful Realtor for 28 years with one of the largest firms in the country. I met a loan officer with Premier several years ago at a seminar and was very impressed with her knowledge of buyer assistance programs, etc. I referred her to several of my first time Buyers and found her to be excellent. Every client that I referred her to was pleased with the process and the service and spoke very highly of her. Her communication skills, her attention to detail, her knowledge of the process, her commitment to getting the job done in a timely manner cannot be matched. Her staff and her processer are the best. I give her name to all of my Buyers, in all price ranges, and highly recommend they talk with her about their new purchase. I have worked with many loan officers over the years and Premier is the best I’ve EVER worked with.

Gerry J. - REALTOR

What a dynamic team of supporting and knowledgeable professionals! Each of my experiences with Premier Nationwide Lending has been nothing short of excellent. When they say, “We pride ourselves in delivering the industry’s best service and experiences,” they mean every word. Thank you for standing consistently behind your commitment. I eagerly look forward to doing more business in the future.

Vanja G. - Homebuyer

Thank you so much, Premier Nationwide Lending, for helping my family move into our dream home! Your hard work and dedication speaks volumes about your personal character. Although we never met in person, you still made a wonderful imprint in our hearts. Thank you for the late nights, patience, timeliness, guidance and thorough explanations throughout our first home buying experience. We definitely couldn’t have done it without you! Premier Nationwide Lending has a “Genuine” on their team, who we just so happened to be referred to. God is Good!

Carlo & Yvonne S. - Homebuyer

I cannot speak highly enough of my experience with Premier Nationwide Lending! I am still in awe of how easy these individuals made the loan process. All my questions and concerns were addressed in a timely manner with a wealth of expert knowledge. I was given the same personal attention one would expect from a local lender. You would have never known that I was working with a lender half a state away. I can say, without a doubt, that when the time comes to buy a new home I will return to Premier Nationwide Lending.

Stephanie B. - Homebuyer

Connect with us: linkedin facebook twitter