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

#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.

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 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, so none of these is a jumbo loan.

#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.

The comfortable budget reaches the median in 11 of 20 cities, and the stretch budget in 17. In the most expensive market, San Diego, 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%:

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 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:

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 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 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:

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

1. 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. 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. 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. 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. 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 with $150,000 and 20% down to try your own taxes and debts. For smaller incomes, see what $75,000 buys.