How Much House Can I Afford With a $100K Salary?

A $100,000 annual salary puts you in a strong position to buy a home, with most buyers at this income level qualifying for houses priced between $400,000 and $500,000. Your exact buying power depends on several key factors that lenders evaluate during the mortgage approval process.

This analysis assumes $100,000 is total household income. If your salary is $100K but your spouse or partner also earns income, your combined qualifying power will be even higher. Your debt-to-income ratio, credit score, and down payment amount determine where you land within this price range. A buyer with excellent credit, minimal existing debt, and a 20% down payment might reach the higher end near $500,000. Someone with a lower credit score or higher debt load might find their options closer to, or even below, $400,000 because they'll have a much higher rate to deal with .

Property taxes, homeowners insurance, and current interest rates also shape your monthly mortgage payment. These costs vary significantly by location and can shift your affordable price range by tens of thousands of dollars. Understanding how these elements work together helps you determine what kind of home fits your budget and long-term financial goals.

The Role of Debt-to-Income Ratio

Your debt-to-income ratio (DTI) is one of the most important numbers in the mortgage approval process. It shows how much of your gross monthly income is already committed to debt payments, and it tells lenders how easily you’ll be able to take on a mortgage without overextending yourself. DTI is calculated by adding up all your monthly debt obligations and dividing them by your gross monthly income.

For a $100,000 salary, your gross monthly income is about $8,333. At a maximum 45% DTI, lenders will generally allow you up to $3,750 per month in total debt payments. That total includes your new mortgage (principal, interest, property taxes, and homeowners insurance), as well as car loans, student loans, credit cards, and personal loans.

It’s also important to know there are two types of DTI:

• Front-end DTI focuses just on your housing costs.

• Back-end DTI includes all of your debts combined.

Mortgage lenders almost always emphasize the back-end ratio because it gives a complete picture of your monthly obligations. If you’re debt-free outside of housing, you may be able to allocate the entire $3,750 toward a mortgage payment. But if you’re already carrying $1,000 a month in other debts, only $2,750 is left for housing. Every $500 in debt reduces your potential home price by about $75,000 to $100,000.

Why does this matter? Because lenders see a lower DTI as less risky. A DTI closer to 30–35% shows you have plenty of cash flow for savings and emergencies, while a DTI near 45% tells lenders you’re stretched to the maximum. Some programs, like FHA and VA, will allow DTIs above 50%, but at that point you may face higher costs or stricter underwriting.

The bottom line: understanding your DTI helps you set a realistic budget. It’s not just about what you can qualify for—it’s about what you can comfortably afford long-term.

Down Payment Scenarios

Your  down payment has a major impact on affordability. To keep the comparison clear, let’s stick with a $500,000 purchase price and show how different down payment levels affect your loan size and monthly payment. Note that these examples assume a 6.5% interest rate.

This table highlights how smaller down payments push up your loan balance, add mortgage insurance costs, and move your monthly payment closer to the 45% DTI ceiling. Even though the home price stays the same, the difference between 20% down and 5% down is more than $500 a month—enough to affect your approval and your comfort level once you move in.

As you can see, the only option for a $500,000 home that keeps you comfortably under the DTI limit is the 20% down scenario. Alternatively, if you can’t put down the full $100K, you can lower your purchase price—for example, buying a $450,000 home and putting $50K down still leaves you with a $400K loan, which keeps the monthly payment similar to the 20% down case. If you qualify for programs like HomeReady, your interest rate will often be the same regardless of whether you put down 5%, 10%, or 20%, but your loan size (and thus your monthly payment) still matters for DTI purposes.

What $100K Buys in Texas

Austin

With prices cooled from their 2022 peak, buyers making $100k can now easily buy a homen the $425–$500K range in neighborhoods like East Austin, South Austin or north Austin. Condos in downtown may still stretch the budget, but suburban single-family homes are firmly within reach.

Leander

Leander has become one of the fastest-growing suburbs of Austin, with master-planned communities and access to the MetroRail into downtown. On $100K, buyers can target homes in the $350K–$425K range, often with more square footage and newer builds than what you’d find closer to the city center.

Round Rock

Known for excellent schools and proximity to major employers like Dell, Round Rock offers strong value. A $100K salary typically qualifies you for $375K–$450K homes, including new construction in family-friendly communities with neighborhood amenities like pools, parks, and trails.

Houston

Houston’s affordability stands out among major metros. On $100K, buyers can shop comfortably in the $350K–$425K range in suburbs like Katy, Cypress, and Sugar Land. Inside the Loop, older townhomes and bungalows in neighborhoods like the Heights or EaDo often fall near $400K–$450K, still accessible with strong credit and modest debt.

Dallas

In Dallas, $100K buyers often target the $400K–$500K range in suburbs like Plano, Frisco, and Richardson, where schools and amenities are a draw. Closer to the city, townhomes in Oak Lawn or condos near Uptown may stretch the budget, but remain achievable with a solid down payment and low existing debt.

Loan Options for $100K Buyers

Conventional Loans

Conventional mortgages are the workhorse of the housing market. They allow as little as 3% down, but putting 20% down eliminates private mortgage insurance (PMI) and lowers your monthly cost. For a $100K earner with strong credit (typically 680 or above), conventional loans offer the best long-term value because they come with lower interest rates and more flexibility when it comes to refinancing. They’re also widely accepted by sellers, which matters in competitive markets like Austin or Dallas.

FHA Loans

FHA loans are designed to make homeownership accessible, especially for buyers who don’t have perfeng debt.ct credit. With just 3.5% down, they open the door to homeownership for those with scores as low as 580. The tradeoff? Mortgage insurance premiums are required and, unlike conventional loans, they remain for the life of the loan. On a $400,000 FHA loan, that insurance could add hundreds to your monthly payment. Still, for a $100K buyer who needs flexibility, FHA can be the difference between renting and owning.

VA Loans

For veterans, active-duty service members, and eligible surviving spouses, VA loans are unmatched. They require no down payment, charge no PMI, and often come with lower-than-average interest rates. On a $100K salary, a VA borrower could comfortably stretch into the $500K+ range because they’re not burdened by monthly insurance costs. In Texas markets with a heavy military presence—like around Fort Hood or San Antonio—VA loans are one of the most powerful benefits available.

Strategies to Expand Your Range

Even if you want more house than your $100K income comfortably covers, there are strategies:

• Pay off debts: Every $500 you free up in monthly obligations adds roughly $75K–$100K to your buying power.

• Improve your credit score: A 100-point jump can lower your rate enough to add $40K–$60K in affordability.

• Increase your down payment: Bigger down payments shrink monthly costs, eliminate PMI, and secure better terms.

• Explore special programs: First-time buyer grants or employer assistance can cover part of your down payment and closing costs.

• Consider timing: Buying now locks in today’s prices, and you can refinance later if rates drop. Waiting risks higher home values even if rates improve.