How Much Can I Borrow For A Mortgage Based On My Income?

Most lenders require that you’ll spend less than 28% of your pretax income on housing and 36% on total debt payments.

If you spend 25% of your income on housing and 40% on total debt payments, they’ll consider the higher number and qualify you for a smaller amount as a result.

How many times my salary can I borrow for a mortgage?

Most lenders will use an income multiple of 4-4.5 times your salary, some offer a 5 times salary mortgage and a few will use 6 times salary, under the right circumstances.

How much do I need to make for a 250k mortgage?

Your maximum mortgage payment (rule of 28)

The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out).

What percentage of income will banks lend?

28 percent

How big of a loan can I get?

Typically, most lenders offer personal loans up to $50,000. However, some lenders offer loans up to $100,000 to borrowers with excellent credit and high income, which is usually at least $150,000 a year. The stronger your application, the more money you’re likely to get approved for.