Peter Mohylsky, Beach Expert, Call me at 850-517-7098 (PMI. Destin)

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Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC

You can't calculate it like that, Peter - you may make $200K annually and not have any debt compared to someone with the same annual income that is in debt up to their eyeballs.

You have to evaluate DTI ratio, credit score, employment, etc. You want to know how to do this to be able to answer client questions but, ultimately, sending them to your preferred lender will get them a more accurate answer (and in a relatively short period of time).

Feb 16, 2019 07:08 PM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Hahaha I know people that make 500k/year that are broke--and 50k/year that can qualify. Debt to income ratio is pretty important!

For instance, the federal government. Debt ratio in the toilet. Not going to qualify. 🤣😂🤣😂

Feb 17, 2019 04:56 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

There are many factors in determining how much house you can afford

Feb 17, 2019 05:49 AM
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations


Feb 17, 2019 05:29 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Each case is different. Contact a loan officer and be prepared to disclose your personal financial details such as car loans and credit card debt. Don't forget student loans. Then your ability to undertake mortgage can be calculated using a loan type you are comfortable with.

So use a competetnt loan officer for best results to fit your situation!

Feb 17, 2019 04:28 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

It's not as simple as how much you make!

Feb 16, 2019 10:06 PM
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Net income averaged over past two years, divide by 24 for monthly. Multiply by 43 percent thats the PITI for a general number - the pickle is some products will allow up to 50% if your FICO is above 710 middle and you have cash reserves. The answer is there is no simple answer in addition to income- property type, property use type, credit and reserve funds factor in $7166 is total payment property tax here is 1.25% of sales price insurance is about .3% add in if there is HOA - Given today's lower  rates you are in the $1,500,000 range with 20% down if that is the net. Rates change twice a day so the exact number is a moving target. This is not a commitment to lend 

Feb 16, 2019 10:06 PM
John Juarez
The Medford Real Estate Team - Fremont, CA

Income must be weighed against debt and monthly payment obligations. Credit score and job security are also important. Talk to a mortgage professional to get approved.

Feb 16, 2019 10:04 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

If your income is consistent you can likely buy something even more than that.  Check with a lender, they will know right away.

Feb 16, 2019 09:20 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

As you can tell from the answers, there is way more involved than gross income.  Many factors are considered. 

Feb 16, 2019 07:13 PM
Ryan Huggins - Thousand Oaks, CA - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I've not seen anything like this.  Someone who makes 200k/yr is one thing but they may have 3 car leases, a boat, alimony, child support, garnished wages, investment homes, large business loans, etc. that make them unable to get the same type of loan someone with no debt can get.

Feb 16, 2019 06:40 PM
Roy Kelley
Retired - Gaithersburg, MD

The debts also must be considered.

Feb 16, 2019 06:37 PM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Yes it makes sense BUT there are so many factors, not the least of which is the polical climate. Let's not forget the last housing collapse, then you could buy a $500,000 home with no income.

Feb 16, 2019 06:00 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

it's based on your adjusted gross income...not your gross....

get a pre-approval and there's no guessing.... 

Feb 16, 2019 05:55 PM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

 If you are a real estate agent this should be common knowledge I would think. Why are you asking?

Feb 16, 2019 05:41 PM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

There are many factors involved as you know so you owe it to your client and others involved in the transaction to connect him/her/them with a qualified loan professional to discuss the mortgage process.

Feb 16, 2019 05:20 PM
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

There are many factors that go into how much of a house you can buy. There is debt to income ratios, which is 45% for conventional loans, 56.99% for FHA, and 41% for VA loans. But there is another factor, which is down payment. In Tennessee, people don’t have enough down payment when compared to their income, so it’s not just a simple “here is my income, how much can I buy” statement. Complete an application, run a credit report, then talk with a qualified lender to get the answers, before you start shopping

Feb 17, 2019 05:44 AM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Debt, credit, monthly expenses, child support, divorce, car payments, insurances, judgements, liens, bankruptcy, etc, etc can all be factors no matter how much someone makes.

Feb 17, 2019 04:26 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

PITI >45% (taxable income-other obligations).

Debt to income ratio is another parameter.

Feb 16, 2019 07:33 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Maybe it's debt to income that is a problem.

Feb 17, 2019 06:41 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

DTI ratio as Debe said.

Feb 17, 2019 10:24 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Once again, what Debe Maxwell, CRS - income alone is not the way to look at it. What if one makes $300K and has IRS tax liens?  

Feb 17, 2019 07:47 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

The old stand by used to be 25% of your monthly income for a mortgage payment and 45% for total debt. Each mortgage program can differ, so get a pre qual and be sure

Feb 17, 2019 07:06 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

At some point the bank safeguards the loan amount using calculations called RISK subject to down payment amounts, credit worthiness/history and of course income. The average person is only able to purchase with HELP

Feb 17, 2019 06:33 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It's not only the income, it is also your debt load.

Feb 17, 2019 06:26 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Feb 17, 2019 03:26 AM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Great question for a licensed mortgage broker. 

Feb 17, 2019 03:15 PM
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

You appear to be seeking a 10,000 foot view of what someone may be able to afford in housing. ANY agent should be able to come up with a number to determine what price point to present to a potential buyer.

This is a two step process and a simple 'rule of thumb' for which you give no assurances. There are always exceptions. However, you need not work as JPL to come up with a rough guideline based on the information on hand.

Step one: In a perfect world 36% of income is eligible for housing. PIck 30 or 40 to make the math easier. In this case around $4,000 monthly for housing.

Step two: How much mortgage can $4,000 a month buy?

Your favorite lender will be hesitant to give you this conversion, but if they owe you, and know you can use this to create urgent buyers, they will provide you their multiplier.

I bet you have attended enough closing to derive your own multiplier.

Of course 'avaialble' income and credit history are the real factors but that requires inquiry into the subjects personal life that actually should be avoided.

Feb 18, 2019 06:01 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

What Debe Maxwell, CRS said, Peter. There are so many consideratios when it comes to calculating how much home someone can afford to carry... I never even attempt to do that analysis for a client. If they've not already been in touch with a lender, that's the first thing I make them do.

Feb 18, 2019 05:32 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I don't get involved with income, let the mortgage professionals handle this.

Feb 21, 2019 07:33 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

depends on debt.  That's why I always left a loan officer work it out for my buyers.

Feb 18, 2019 01:50 PM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Still comes down to your credit score.

Feb 18, 2019 10:32 AM