# How much house can I afford on $150,000 a year?

> On $150,000 a year, see the price 20% down buys at today’s rate, which big-city medians it reaches, and when a home needs a jumbo loan.

URL: https://mail.mortgage-math-us.com/blog/how-much-house-can-i-afford-on-150k/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

On $150,000 a year, a housing payment at Freddie Mac’s 30% guideline is $3,750 a month — enough for a home of about **$568,000** with 20% down and no PMI at today’s 7.24% average. That reaches the median home value in 11 of the 20 large cities we track; stretching to a 45% debt ratio reaches 17. A jumbo loan starts only above $1,040,938 with 20% down, beyond what this income supports on its own.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| 30-year fixed average used here | 7.24% | [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) | Week of Oct 29, 2026 |
| Freddie Mac housing-cost guideline | 30% | [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) | Jan 22, 2026 |
| Freddie Mac total-debt guideline | 45% | [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) | Jan 22, 2026 |
| 2026 baseline conforming loan limit | $832,750 | [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) | 2026 limit |
| 2026 high-cost area ceiling | $1,249,125 | [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) | 2026 limit |
| You can ask to cancel PMI at | 80% | [CFPB](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/) | Oct 28, 2026 |

## What $150,000 buys with 20% down

Gross monthly income at $150,000 is $12,500. With 20% down there is no PMI, so every dollar of the budget goes to principal, interest, property tax and insurance. The table uses today’s 7.24% average for a 30-year fixed loan, property tax at the national ratio of 0.89% and insurance at $4.90 per $1,000, and assumes no other debts.

*Home price on $150,000 a year with 20% down*

| Budget rule | Share of gross pay | Monthly housing budget | Home price | 20% down payment | Loan amount |
|---|---:|---:|---:|---:|---:|
| Freddie Mac housing guideline | 30% | $3,750 | **$568,000** | $113,600 | $454,400 |
| Fannie Mae manual-underwriting DTI | 36% | $4,500 | **$682,000** | $136,400 | $545,600 |
| Freddie Mac total-debt guideline | 45% | $5,625 | **$852,000** | $170,400 | $681,600 |
| Fannie Mae automated maximum | 50% | $6,250 | **$947,000** | $189,400 | $757,600 |

The first row is the comfortable figure. The others are lender limits on *all* debts, so a car payment or student loans come straight out of them — the [$100,000 post](https://mail.mortgage-math-us.com/blog/how-much-house-can-i-afford-on-100k/) shows how much that costs. Notice the cash column: at this income, saving the down payment is usually harder than qualifying for the payment. And every loan in the last column stays under the $832,750 [conforming loan limit](https://mail.mortgage-math-us.com/glossary/conforming-loan-limit/), so none of these is a [jumbo loan](https://mail.mortgage-math-us.com/loan-types/jumbo-loans/).

## Which big-city medians $150,000 reaches

The national figures hide how much prices vary between cities. The table re-runs the 30% budget with 20% down using each city’s own median home value and property-tax ratio from the Census Bureau’s American Community Survey. “Stretch” means the city’s median fits only if you push total debt to 45% with no other debts.

*$150,000 vs the median home value in 20 large cities (20% down, 30% budget)*

| City | Median home value | Effective property tax | Price you can afford | Reaches the median? | 20% down on the median |
|---|---:|---:|---:|---|---:|
| [San Diego](https://mail.mortgage-math-us.com/location/san-diego-ca/) | $980,700 | 0.62% | $588,000 | No | $196,140 |
| [Seattle](https://mail.mortgage-math-us.com/location/seattle-wa/) | $950,800 | 0.79% | $575,000 | No | $190,160 |
| [Los Angeles](https://mail.mortgage-math-us.com/location/los-angeles-ca/) | $947,900 | 0.65% | $586,000 | No | $189,580 |
| [New York](https://mail.mortgage-math-us.com/location/new-york-ny/) | $778,600 | 0.86% | $570,000 | Stretch | $155,720 |
| [Washington](https://mail.mortgage-math-us.com/location/washington-dc/) | $733,400 | 0.63% | $587,000 | Stretch | $146,680 |
| [Boston](https://mail.mortgage-math-us.com/location/boston-ma/) | $722,800 | 0.62% | $588,000 | Stretch | $144,560 |
| [Denver](https://mail.mortgage-math-us.com/location/denver-co/) | $636,400 | 0.48% | $599,000 | Stretch | $127,280 |
| [Miami](https://mail.mortgage-math-us.com/location/miami-fl/) | $598,200 | 0.86% | $570,000 | Stretch | $119,640 |
| [Austin](https://mail.mortgage-math-us.com/location/austin-tx/) | $571,000 | 1.31% | $539,000 | Stretch | $114,200 |
| [Tampa](https://mail.mortgage-math-us.com/location/tampa-fl/) | $494,400 | 0.82% | $573,000 | Yes | $98,880 |
| [Atlanta](https://mail.mortgage-math-us.com/location/atlanta-ga/) | $462,200 | 1.01% | $560,000 | Yes | $92,440 |
| [Las Vegas](https://mail.mortgage-math-us.com/location/las-vegas-nv/) | $458,300 | 0.49% | $598,000 | Yes | $91,660 |
| [Phoenix](https://mail.mortgage-math-us.com/location/phoenix-az/) | $454,900 | 0.4% | $605,000 | Yes | $90,980 |
| [Raleigh](https://mail.mortgage-math-us.com/location/raleigh-nc/) | $450,300 | 0.72% | $580,000 | Yes | $90,060 |
| [Nashville](https://mail.mortgage-math-us.com/location/nashville-tn/) | $438,800 | 0.56% | $593,000 | Yes | $87,760 |
| [Charlotte](https://mail.mortgage-math-us.com/location/charlotte-nc/) | $431,900 | 0.69% | $583,000 | Yes | $86,380 |
| [Chicago](https://mail.mortgage-math-us.com/location/chicago-il/) | $341,200 | 1.51% | $527,000 | Yes | $68,240 |
| [Dallas](https://mail.mortgage-math-us.com/location/dallas-tx/) | $340,400 | 1.45% | $531,000 | Yes | $68,080 |
| [Houston](https://mail.mortgage-math-us.com/location/houston-tx/) | $301,200 | 1.43% | $532,000 | Yes | $60,240 |
| [Columbus](https://mail.mortgage-math-us.com/location/columbus-oh/) | $279,900 | 1.27% | $542,000 | Yes | $55,980 |

The comfortable budget reaches the median in 11 of 20 cities, and the stretch budget in 17. In the most expensive market, [San Diego](https://mail.mortgage-math-us.com/location/san-diego-ca/), the median is $980,700, and 20% down alone would be $196,140. Property taxes shift the answer too: the cities with the highest tax ratios on the list — Chicago, Dallas and Houston — buy noticeably less house on the same payment than low-tax cities do. Each city page has local taxes, insurance and assistance programs.

## Buying the median home in New York

New York is the most expensive city on the list whose median fits at the 45% stretch level. Here is what a home at its median value of $778,600 costs each month, with the city’s property-tax ratio of 0.86%:

> **Worked example: A $778,600 home in New York at 7.24%**
>
> | | 20% down | 10% down |
> |---|---:|---:|
> | Down payment | $155,720 | $77,860 |
> | Principal and interest | $4,245 | $4,776 |
> | Property tax | $558 | $558 |
> | Homeowners insurance | $318 | $318 |
> | PMI | — | $350 |
> | **Monthly total** | **$5,121** | **$6,002** |
> | Share of gross pay | 41.0% | 48.0% |

With 20% down the payment takes 41.0% of gross pay, which a lender can approve with few other debts but which leaves less room than the 30% guideline suggests. Closing costs of 2%–5% add $15,600–$38,900 to the cash you need. See the [New York page](https://mail.mortgage-math-us.com/location/new-york-ny/) for local insurance and tax details.

## If 20% down is out of reach

Putting 20% down avoids PMI, but it is not a requirement. On the same $3,750 budget, a smaller down payment buys less house because part of the payment goes to PMI and interest on a larger loan:

*Price on the $3,750 budget by down payment*

| Down payment | Home price | Cash for the down payment | PMI a month |
|---|---:|---:|---:|
| 5% | $463,000 | $23,150 | $220 |
| 10% | $485,000 | $48,500 | $218 |
| 15% | $509,000 | $76,350 | $216 |
| 20% | $568,000 | $113,600 | None |

With 10% down, the price is $83,000 less than with 20% down, and you need far less cash up front. PMI can be cancelled on request once the balance reaches 80% of the original value and ends automatically at 78% — around year 10 on the regular schedule, sooner with extra payments. The [PMI guide](https://mail.mortgage-math-us.com/buying/pmi/) covers the cancellation rules. Waiting years to save 20% can cost more than PMI if prices or rents rise meanwhile, so compare the two honestly. If part of the down payment will come from a relative, the lender will want a gift letter and a paper trail for the funds, and the money has to be in place before closing — not promised after it.

## Where the conforming loan limit sits

Loans up to the conforming limit can be bought by Fannie Mae and Freddie Mac; anything larger is a jumbo loan with its own, usually stricter, rules. For 2026 the baseline limit for a one-unit home is $832,750, so with 20% down a jumbo starts above a price of $1,040,938, and with 10% down above $925,278.

Even at Fannie Mae’s 50% ceiling with no other debts, $150,000 supports about $947,000 with 20% down — a loan of $757,600, still $75,150 under the baseline limit. For most $150,000 households, a jumbo loan only enters the picture with a large down payment from savings or the sale of another home.

High-cost counties have higher limits, up to $1,249,125. Among the cities above, the limit is $1,249,125 in Los Angeles County, $1,104,000 in San Diego County and $862,500 in Denver County, so buyers there can borrow more before crossing into jumbo territory. The [jumbo loans guide](https://mail.mortgage-math-us.com/loan-types/jumbo-loans/) explains how jumbo underwriting differs.

## The income a jumbo-size home takes

Working backwards shows how far the jumbo threshold is from a $150,000 salary. The table prices a home whose loan sits exactly at the limit and asks what income would carry its payment at today’s rate:

*Income needed for a home at the conforming limit (national tax and insurance ratios)*

| Home | Price | Monthly payment | Income at the 30% guideline | Income at a 45% DTI, no other debts |
|---|---:|---:|---:|---:|
| Loan at the baseline limit, 20% down | $1,040,938 | $6,872 | $275,000 | $183,000 |
| Loan at the baseline limit, 10% down | $925,278 | $7,156 | $286,000 | $191,000 |
| Loan at the high-cost ceiling, 20% down | $1,561,406 | $10,308 | $412,000 | $275,000 |

At this income, then, the conforming limit is a ceiling you are unlikely to reach — the binding constraints are the down payment and the debt ratio, not the loan size.

## Planning a purchase on $150,000

**How to plan a high-cost-market purchase on $150,000**

1. **Set the payment, not the price** — Start from $3,750 a month at the 30% guideline and subtract any other debts you want to keep paying comfortably.
2. **Check the local numbers** — Swap in your city’s property-tax ratio, insurance quotes and any HOA dues; they move the price by tens of thousands.
3. **Decide on the down payment** — Weigh 20% down and no PMI against 10% down, a smaller cash outlay and PMI that comes off later.
4. **Know your county’s conforming limit** — If the loan you need is near it, a slightly larger down payment can keep you in a conforming loan.
5. **Get pre-approved at your number** — Ask for a pre-approval at the price you chose rather than the lender’s maximum.

[Open the affordability calculator](https://mail.mortgage-math-us.com/tools/affordability-calculator/)

Open the [affordability calculator with $150,000 and 20% down](https://mail.mortgage-math-us.com/tools/affordability-calculator/?income=150000&down=20) to try your own taxes and debts. For smaller incomes, see [what $75,000 buys](https://mail.mortgage-math-us.com/blog/how-much-house-can-i-afford-on-75k/).

## Frequently asked questions

### Can I afford a $700,000 house on $150,000 a year?

With 20% down at today’s 7.24% average, a $700,000 home costs about $4,621 a month with national-average taxes and insurance — 37.0% of gross pay. That is above Freddie Mac’s 30% guideline, but within the debt-ratio limits lenders can approve if you have few other debts.

### Do I need 20% down on $150,000 a year?

No. Conventional loans allow as little as 3% down for eligible buyers. With less than 20% down you pay PMI, which you can ask to remove at 80% of the original value.

### When does my loan become a jumbo loan?

When it exceeds the conforming limit for your county: $832,750 for a one-unit home in most of the country in 2026, and up to $1,249,125 in high-cost areas. With 20% down, that is a price above $1,040,938 at the baseline limit.

### Is $150,000 enough to buy in an expensive city?

It depends on the city. At the 30% guideline with 20% down, $150,000 reaches the median home value in 11 of the 20 large cities in our table; the most expensive medians need a larger income, savings for a bigger down payment, or a smaller home than the median.

### How much should I save on a $150,000 salary?

For a $568,000 home with 20% down, plan for $113,600 plus closing costs of $11,400–$28,400 (2%–5% per the CFPB), and keep reserves after closing.

### Should I take a 15-year mortgage on $150,000 a year?

It costs much more each month. On the $454,400 loan for a $568,000 home, principal and interest would be $3,983 a month at the 15-year average of 6.6%, against $3,097 on a 30-year loan at 7.24%. The higher payment means a smaller home on the same budget, in exchange for far less interest over the life of the loan.

### Does a higher income get a better mortgage rate?

Not directly. Rates depend mainly on credit score, down payment, loan type and loan size. Income affects how much you can borrow, and a larger down payment can lower both the rate and the mortgage insurance.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average; 15-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income; Freddie Mac guidance: total debt payments below this share of gross income (Jan 22, 2026)
- [Fannie Mae Selling Guide B3-6-02](https://selling-guide.fanniemae.com/sel/b3-6-02/debt-income-ratios) — Fannie Mae maximum DTI, manually underwritten loans; Fannie Mae maximum DTI, Desktop Underwriter loans (Apr 2, 2025)
- [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) — 2026 baseline conforming loan limit (one-unit); 2026 high-cost area conforming ceiling (one-unit) (2026 limit)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=160XX00US3651000) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=160XX00US3651000) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price); Minimum down payment on some conventional loans (Oct 28, 2026)
- [CFPB](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/) — Ask your servicer to cancel PMI at this share of original value; PMI ends automatically at this share of original value (Oct 28, 2026)
- [FHFA: Conforming Loan Limit Values](https://www.fhfa.gov/data/conforming-loan-limit) — Conforming loan limit, Los Angeles County (one unit); Conforming loan limit, San Diego County (one unit); Conforming loan limit, Denver County (one unit) (2026)
- [CFPB: Understand the different kinds of loans available](https://www.consumerfinance.gov/owning-a-home/explore/understand-the-different-kinds-of-loans-available/)
- [CFPB: Decide how much you want to spend on a home](https://www.consumerfinance.gov/owning-a-home/prepare/decide-how-much-you-want-spend/)
- [CFPB: Explore interest rates](https://www.consumerfinance.gov/owning-a-home/explore-rates/)

_General information, not financial advice._