Figuring out how much of a down payment you need to buy a $300k house can be overwhelming. This guide will break down your down payment, income needs, and everything in between so you can start your homebuying journey with confidence.Income Needed for a $300k HomeWhen setting your sights on a $300,000 home purchase, it’s important to grasp the concept of yourdebt-to-income (DTI) ratioand how it fits within the framework of loan limits. YourDTI ratiorepresents the chunk of your gross monthly income (pre-tax) that is allocated towards your comprehensive monthly debt responsibilities. This encompasses your housing payment (principal, interest, property taxes, and insurance) along with any additional debts, such as credit cardsand car payments.Conforming loans, overseen by Fannie Maeand Freddie Mac,generally permit DTI ratios up toalmost50%. Thismeansthat as much as half of your monthly gross income can be directed towards debt repayment. However, it’simportantto note that conforming loans...
