Most real-estate experts will tell **you** to have at least 5% of the cost of a **house** on hand in **savings** to account for the down payment. But that’s only a minimum, and expectations can differ by community. In a city like New York, for example, minimum down payments are almost always 20%, no less.

## In this manner, how much should a first time home buyer save?

For FHA loans, a down payment of 3.5% is required for maximum financing. So for the same $500,000 **home**, you would need to come up with at least $17,500. Including the closing costs, you **should** be putting aside approximately between $27,500 and $28,750 to get the keys to your **first home**.

## Subsequently, what if I can’t afford closing costs?

One of the most common ways to **pay** for **closing costs** is to apply for a grant with a HUD-approved state or local housing agency or commission. These agencies set aside a certain amount of funds for **closing cost** grants for low-to-moderate income borrowers.

## Can I buy a house with 30000 Income?

If you were to use the 28% rule, you could afford a monthly mortgage payment of $700 a month on a yearly **income** of **$30,000**. Another guideline to follow is your home should cost no more than 2.5 to 3 times your yearly **salary**, which means if you make **$30,000** a year, your maximum budget should be $90,000.

## Can I afford a house on 40k a year?

Take a homebuyer who makes $40,000 a **year**. The maximum amount for monthly **mortgage**-related payments at 28% of gross income is $933. ($**40,000** times 0.28 equals $11,200, and $11,200 divided by 12 months equals $933.33.)

## How much do I need to make to afford a 250k house?

**How much do** you **need to make** to be able to **afford** a **house** that costs $250,000? To **afford** a **house** that costs $250,000 with a down payment of $50,000, you’d **need** to earn $37,303 per year before tax. The monthly mortgage payment **would** be $870. Salary **needed** for 250,000 dollar mortgage.

## How much house can I afford on $60 000 a year?

The usual rule of thumb is that you **can afford** a **mortgage** two to 2.5 times your annual income. That’s a $120,000 to $150,000 **mortgage** at **$60,000**.

## How much do you have to make a year to afford a $500000 house?

**How much do you need to make** to be able to **afford** a **house** that costs **$500,000**? To **afford** a **house** that costs **$500,000** with a down payment of $100,000, **you**‘d **need to earn** $74,607 per **year** before tax. The monthly mortgage payment **would** be $1,741. Salary needed for **500,000** dollar mortgage.

## How much money do you need to buy a 200k house?

Summary

Down payment | 10% of $200,000 | $20,000 |
---|---|---|

Prepaid expenses | 2% of $180,000 | $3,600 |

Utility adjustments | Estimated | $500 |

Cash reserves |
$1,200 mortgage payment x 2 | $2,400 |

Total cash required |
$31,000 |

## Where is the cheapest place to buy a nice house?

**Keeping reading to see a list of the top 10 cheapest states to buy a home right now.**

- Ohio. Shutterstock. Median list price: $180,000. …
- T9. South Carolina. Shutterstock. …
- T9. Missouri. Shutterstock. …
- Kentucky. Shutterstock. …
- Indiana. Shutterstock/Brad Whitsitt. …
- Oklahoma. Shutterstock. …
- Mississippi. Getty Images. …
- Alabama. Shutterstock.