How Much House Can You REALLY Afford With a $50k a Year Salary 

I bought my townhouse for $110,000. I make $70k a year. My Mortgage is only $730/month. Down payment was only $4000. My interest rate is locked at 2.67%. It really depends on where you live. Louisiana has one of the cheapest housing markets. So my income goes far here. I recently just got married.

That $600 car payment is what’s killing it

I started my own business this month and I am meeting with my first client today. I retired last yr at 55 with 3 houses paid off worth 4.5 million. I will have an income stream of $20,000 per yr through my business. I realized that the secret to making a million is making better investments.

I few years ago before the pandemic I was working my way up to 50k to meet affordability, I get there and then it’s not enough. I get to 70k and it’s now too much for assistance programs but yet not enough to the same homes that I’m shopping. I give up smh. Between the moving target and student loans, it seems like a truly un-attainable goal. I’m not gonna live in the hood with shots firing daily, even there I can barely afford!

Basically means that you have make $100,000 to qualify for a $362,000 house. Not many people can afford a house on a single income. In the most expensive cities especially.

I bought my house outside of the city limits. I was making 35k and my house was $170k with $0 in debt. I was aiming for $150k. I bought it before the market got crazy. I do have an hour commute to work. If I got something in the city it would've been super small and in a bad area. You gotta pick and choose with what you're willing to live with.

And this is why my generation is living in their cars. They’re basically telling us “own nothing and be happy about it.”

The thing that sucks is rent is more than mortgage yet they say you can't afford a mortgage when you're holding down your rent every month 😩🤦🏾‍♀️

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

To stay safe I won’t spend more than 1 weeks income on mortgage. I live in a newly renovated 3br, 2 bth home in the city- 180k. 2.99% interest. $927 mortgage. 800 credit score. I’m single with 1 grown son. I make just over 50k but have a side hustle…or two. I moved from a 2br 1 bath apartment in the suburbs where I was paying $1,263/month. Living below your means is a major key to HAPPINESS and stress free/semi debt free living. If you can afford to rent, you can afford to buy. Don’t buy more house than you can EASILY afford. 🙏🏾🙏🏾🙏🏾

Why the heck would you use New York as an example for someone who makes 60k? That’s close to the poverty line in New York

Great job on sharing this for lots of people. Best advice I can share is before anyone moves into ownership. Eliminate all debt. No credit cards or car payments. Put down 20% when you can to avoid PMI. Take out a 15 year mortgage with a payment no more then 1/4 of you income. Please don’t buy the max you can afford. Buy the home off the total amount/ not the monthly payment amount. Doing the above will allow you to own your house and the house not own you. If you can’t , best to rent until your able to. I own my home in California- mortgage free by following the above. Good luck!

Man, it would have been educationally beneficial if you two were prepared to share this information in a concise way. It would have been great if you would have had all the numbers together, the researched cost of the average price of a home ( national ) data, and all information to plug and discuss. My first time watching, and it was like watching grass grown in the middle of an NYC winter. Damn......

You would have to relocate.. 50k salary in Cleveland, Detroit can get you a decent home with 180k even a multi family.., I have three using a FHA

Single Otr truck driver living in my semi. I Net 54k yr, 15k in savings, $0 debts, monthly living cost is $820, living in kcmo.

👏🏾👏🏾👏🏾👏🏾👏🏾 Thank y’all so much for running this down. 50k a year is nothing!! 100k for a house it’s nothing!!! More hustle is required!!!’

People don’t realize that if you are an average income earner it requires two good full time incomes to purchase a home. A single person purchasing a home is at high risk of foreclosure if the lose their job or income is cut. Another contributing factor to many struggling to qualify for a mortgage loan, including couples is excessive debt, financial irresponsibility, lack of financial discipline and abuse of credit which results in lower FICO scores which results in higher interest rates.

An income of $50K for Long Island, NY was fine, 25 years ago! That is when I bought my L.I. house.

Great show. I like Benz vehicles and etc. However, cars depreciated the minute you drive off the lot. Stop the car notes. Once you pay that car off, don't get another. Same thing with leasing every few years. Can you imagine how much more money you would save? Sometimes it's tough out here in the streets because of people spending habits. If you're in NY, you better use mass transportation for a while. LOL!

Y’all this is suchhhh a good example. I’m looking at buying a car now so have been thinking about the assets I want to have. You used great numbers!!! I live in south Florida. Car insurance is like $200 /month. Great stuff.

In 2021 I was making 50k, I bought one for 185k in Atlanta but I didn't have a car payment so that definitely helped

MAN this video breaks it down so well. I've been struggling to learn this process in depth and this gives a great starting point on what I need to focus on. Thanks for making this vid, this is a GEM yall!

I’m real estate agent/ investor in NYC, people are moving to upstate NY or out of NY because single family in NY fully renovated in the Bronx NY is about 650k.

Averaged 70k (I make 60k base now) with OT per year working in Oklahoma... Bought a 2BD/2BA /w garage condo in Dallas for 145k in 2020 during COVID. Took advantage of Texas first time buyers grant (100% forgivable after 5 years of ownership). Paid a total of like $6000 to get into the home. Only thing is I don't have any college debt.

Always buy a duplex not a single home. So the real estate produces some income. If you a guy do what Keven Samuels said and work the weekends. Working the weekends at $25 per hr adds 21k now your earning $71,000 per year and the duplex should add another $12,000.

If the average American makes less than 50k, how is 300k for a home to low? Majority of homes in America are under 350k…

Minnesota allowed me to purchase 12/23/22 a triplex $350K and I paid a very low payment for my mortgage.

I bought my house in 2009 for $120,000... it's now worth $325,000. Crazy.. I paid it off early and am currently saving to buy my dream home, but that is going to cost me $475,000. My salary is $80k. And i currently have 100k saved up. I live in NM

When I was a real estate agent in New York in 2013 I got a deal done with someone with that income buying a multi family but the average multi family back then was running $300-$400k. It’s disgusting to think about the housing prices now 😩

That is one of the best breakdowns I’ve seen.

Thanks for sharing. The frustrating part is that nowadays, renters are paying more than the monthly estimated costs of a mortgage in some places. My 3/2 Apt outside of ATL at market rate is more than the calculated monthly cost of the mortgage in this example. So we’re basically getting served beer and getting charged for champagne 😕.

Very good video. Nice breakdown. The gap to home ownership seems to be expanding by the day.

Depend on the interest rate and if you can come up with the 20% down payment. Yes, there is FHA, but doesn't matter how you look at it, eventually you have to pay for how much the house cost.

It only works, at that income, with trusted co-borrowers to give more buying power. This is a dose of reality for a lot of people. It's not easy, but it can be done! Dope content!

Get rid of the car payments! A home is an appreciating asset and cars depreciate tremendously. No debt would be even better giving you more options. Not having a car note, and being debt free helps me out a lot in being able to afford my home.

Or.. hear me out. You can get married. Blk ppl are the LEAST married which is also one of the reasons we struggle the most to qualify for mortgages. Many of us also need to focus on getting skillsets & trades that pay like Booker T.Washington said 100 yrs ago.

It’s him STILL talking about a 600k house at the end 😩. “Stick to the Budweisers you’re used to”

I am so fortunate that I made productive decisions about my finances that changed my life forever. I am a single mum living in Melbourne Australia who bought my second home in September and is hoping to retire next year at 50 if things continue to go smoothly for me

Average house in Illinois is around $200k and 50k a year is still a struggle for a single person and some married

Thank you so MUCH! for explaining this and repeating it for me to Understand... More please..

You can do anything with great focus I can't explain it but something with an unknown force will help you overcome anything I know this as a fact.

If you make $50,000 a year, you can afford a house between 50 to 120 thousand.

In NYC we can't even afford to rent an apartment let alone buy a house...realtors and landlords want min 65k

The MC drove me nuts. He literally just explained it. I can’t 🤦🏿‍♀️🤦🏿‍♀️

That’s why so many people keep moving out of NY. It’s impossible for some people to afford a home, let alone be eligible.

could answer this quick...you can afford a SHED from HOME DEPOT on a 50k/year salary

The bank don't care of your housepoor

I was able to get a 300k loan making 35k a year once on a conventional loan no additional debit

Depends on what State you live in. Credit to debt ratio and your spending habits

If u make average money you CANNOT afford an average home. Great system

I really enjoyed the straight forward ness. Great work fellas

"You can't have champagne taste with beer money" Love it!!! 😂😍👍🍾🥂 Thanks for so much value!!!

Three years ago I made 29k and had a downpayment of 40k for a house that was 178k ( because I sold my previous house and that is why the downpayment was 40k)

This scenario is what I’m looking at. 50k, single, 10k down payment using FHA loan. I believe my only option now is to make more money other than that is to rent?

Great video! Getting a house on a $50K per year salary? It used to work back in 1985, probably! Fast forward to 2023, you may be able to double up in an apartment. With a few roommates! That's why we have a major homeless problem now - too many people have purchased homes they could not afford!

Ya, I make 100k in California single. Still, a house close to work is not in the cards. I’m not driving 2 hours a day for 30 years just for house. After expenses, I got 2k a month extra. Just gonna rent forever close to work and put all that into a 401k. Really no point in buying a house single in my situation. Once I get 2 mill in my 401k, I’ll retire and possibly move to buy a house or stay and keep renting til I pass on. Most important thing is not having to work after 65

I was making 12 hr when I got my house 8 years ago here in Louisville ky for 75,000 I qualified for a free down payment assistance of 10,000 my payments are 564 was cheaper but insurance raised me up by 300 property taxes want more this year, the house did need finishing but little by little, now I have a roof leak but that will be fixed next week, I would still get this house seeing how much apartments cost now and I lost my 15/ hr job in November, still cheaper than renting! Oh I never had a car payment either always paid cash or auctions!

In 1996 my interest rate was 6.5 and they told me that you could afford about your annual salary in a house. That is over 3 times the annual salary. This is 2008 all over again if they handing out loans like this. Better get an apartment and a roommate lol

I’m great full for building my home when I was 25. My rent was $550 in the hood. At that time I was making 53k. The purchase was $174,500. Now all the houses in the neighborhood start at about $385k. That put me at $1200 a month.

I like that “why not?!” 😂 There should be a system in place: if you work then you should be giving the opportunity to buy a home.

You cannot qualify to rent an apartment based off of income requirements in New York without a co-signer on $50,000 a year. How in the hell are you going to buy a house? If you are of modest means go to a place where that money can do more for you. Hit the suburbs. Go to a lower cost state in addition to doing what you got to do to earn more money. Location is the biggest factor in determining real estate prices. Go to a low-cost area, build up some equity and then make that move if that's what you want to do.

In today’s market to buy a house that cost $181,000 you gotta live in Alabama 😂 because where you finding a house for that price 🥴

300k is reality in the south

This is a great video to show how the power structure is able to enslave naive people with debt and create dependency on government.

I would like to thank you fir such valuable information. Thus has been a huge blessing for me.

Basically one has to be debt free which is possible.

Health insurance, retirement, etc....

So....I'm staying with my parents for a long time?

1800sq ft 3 bed 2 bath in Alabama all day built last 10 yr

Great information! I had two houses a few years ago. At the time I was teaching. My first home was about 32k. It was brick, 3bd, bath and half. I was probably making less than 15k as a teacher. Some years later my husband and I bought a,,150k house, about ,2000sq ft. Split level new house. Including taxes and insurance our payments were about 1100. We were married, but divorced so I was stuck with 2 houses. It was a strain to make the payments. Eventually, I became I'll and could not work. Today, I rent. I want to buy again because my rent is higher than what some folks pay for their mortgage. My credit tool a bad hit when someone stole all my money and got a credit card in my name. Trying to get that credit card off my credit report.

It great being young with a great credit score, but in this economy how do we get in real estate?*without having this 100k salary* I have no way of coming up with this salary. What employer will pay this to young individuals? Rarely any. What loan will I get approved of making a few dollars above minimum wage?

I live in new york state you can absolutely buy a house making 50k a year not everyone lives in the city

The only other way to get somewhat close to this 600k figure is to get a co-signer and by purchase a four-plex and live in one of the units. 😉

All the more reason to not finance a car while purchasing a home at this financial level.

…$50k can’t buy you a $600,000.00 house? NO! Lol! Better take into account sky high inflation and debt. $50k can barely afford a nice apartment in NYC these days. You can get a room for rent though.

I gross 200k, condo 150k, and car paid off. Cant imagine buying a house that expensive that i would have to keep maintaining through 30 years. Cars are a liability not asset shouldnt have a 5 to 7 year car loan unless you have the money already in the bank

Someone could afford the house if they could purchase for it in cash. The issue is qualifying for the mortgage. Let's say a Millennial lived at home and SAVED all of their coins for a house for a number of years, they could do it, but most people have to qualify for a mortgage that is where the issue lies. Realistically most could save if they have 0 expenses.

I live in FL, I got no debt I own my car. I bring home close to 4.4k a month. My bills (rent,car/life insurance/food,cell etc) it's only 2.2k a month. I plan to save next year the Xtra 2k a month for a home.

I bought 2 homes since 2007 had my first home built only making $15 a hour back then bought a bigger home in 2014 making around $50,000 a year when my buddy makes $100,000 a year and rents do the math 😂

My mortgage balance is 70k My mortgage payment is $565/month It’s a 2 bed 2 bathroom condo. I live in Woodstock Georgia I make 50K a year!! Winning 🏆 😊

Basically make more money is what you gotta do 50k ain’t it…the hustle continues one job ain’t enough out here

Taking the maximum loan a mortgage company will give you is a big mistake, you will be house poor and probably lose the house if the there a slight economic downturn. To find out how much house you can really afford you need to add up all you're typical expenses and create a budget. I make 80k per year and the mortgage company was willing to lend me 450k/3k a month payment. When I created a budget I found that I really could only afford about 300k/2k a month payment. If I went higher than 300k I would have the reduce how much I put into my retirement account, lower my standard of living, wouldn't be able to afford the average car payment and I wouldn't build up enough savings to survive a few months without work. I was able to buy a small house at 300k but the long commute is driving me crazy. I don't regret buying the house because having a house mostly paid off will make it easier to retire. However, I'm realizing I need to get a Van, convert the Van into a camper and spend a few nights a week in the VAN/come back to my house on the weekend. Because I bought the 300k house I can afford to get the VAN. The property tax is also going up alot and if the property tax got too bad I could sell the house invest the proceeds in a well diversified fund and live in the camper van full time saving alot of money. If you are thinking there is no way you could find a house in you're price range you are not alone, most people under 50 are priced out of the market at this point and I expect to see alot more people renting rooms/living in Vans. Its pretty disgusting that in the richest country in the world many young people have no choice but to live in 50 - 300 square foot units.

“Laughs in Texas “

Can you please add this particular mortgage calculator link in the description?

Couldn't make it bruh. Tried

Basically, if you make 50k a year, you really can't afford to buy a house.

Yeah this scenario is literally me rn and in PA, Im so fucked 😭

Real life scenario for many people.

I live on Long Island NY. Def can’t have a 600k house with 50k income

His spirit was broken when he mentioned groceries. That ish is 200$ a store visit.

I don’t see the link to the calculator, but I found it when I typed it as I saw it in the description. Great content btw. 17.01 sounds like when Sean Paul said Yeah, Yeah yeah. 🤣🤣

Insurance, electric, taxes, hoa

So real, I love it- Thank You

Based on these comments, many of you really need to consider moving to a lower cost of living state or city if you really want "own" a home. I wouldn't work myself to death just for an overpriced house unless there were absolutely no other options.

It’s definitely possible but you’re just not gonna get a big ass crib. If you live in on your own get a mobile home so a lot more affordable around the 50 to 150 range you can get something nice or get a tiny home there’s options out there.

Just learned something thanks 💯 subscribed

It's a good analysis. We need to look in an affordable area.

300K is reality in upstate NY, or Connecticut, as well as VA, NC, SC

Great video. Thanks for sharing typical salary amount..

Did they just say 600K in nyc? Where are they looking at? A homeless man house is worth that much realistically the cost should be close to $900k