How to Afford a $400k House

To afford a $400,000 home, you generally need a household income between about $68,000 and $94,000, and a down payment that can be far smaller than 20%. At today's 30-year fixed rate of 6.25% (6.26% APR, verified July 2026), a $400,000 home with 20% down runs about $2,427 a month including taxes and insurance, and low-down-payment loans can get you in for 3% to 3.5% down.

Because $400,000 is close to the national median home price, this is the number a lot of buyers are actually working with. What you need to earn depends on your down payment, your other debts, and how lenders really measure affordability, which is more generous than the common rules of thumb suggest.

Figures use a 6.25% 30-year fixed rate (6.26% APR) as of July 2026. Rates change often, so treat the math as illustrative and get a current quote for your real numbers.

What income do I need to afford a $400k house?

Most buyers need somewhere between $68,000 and $94,000 a year to afford a $400,000 home, depending on down payment and existing debt. The range depends on what else you owe each month and how much you put down.

Here is the monthly picture with 20% down, which avoids mortgage insurance:

Cost component	Amount (20% down)
Loan amount	$320,000
Principal and interest	about $1,970/mo
Property taxes (~1.1%)	about $367/mo
Homeowners insurance	about $90/mo
Total payment	about $2,427/mo

To carry that payment plus about $400 in other monthly debts, you would need roughly $94,000 a year at a conservative 36% debt-to-income ratio, about $79,000 at 43%, and about $68,000 at 50%. You can check your own income against a payment in an affordability calculator to see which end of that range fits you. Which end applies comes down to the qualifying rules below.

Do I need 20% down for a $400k house?

No. Putting 20% down on a $400,000 home means $80,000, and most buyers do not have or need that. You have lower-down-payment options that get you into the same house sooner.

FHA loans require 3.5% down, which is $14,000. Conventional loans allow as little as 3% down for qualified buyers, which is $12,000. Both carry mortgage insurance while you are under 20% equity, but conventional mortgage insurance is temporary and drops off as you build equity. Here is how the scenarios compare at 6.25%:

Down payment	Loan amount	Principal & interest	Est. total/mo
5% ($20,000)	$380,000	about $2,340 + PMI	about $2,986
10% ($40,000)	$360,000	about $2,217 + PMI	about $2,853
20% ($80,000)	$320,000	about $1,970	about $2,427

Is the 28% rule the real limit?

No. The 28% front-end guideline is a cushion, not the ceiling lenders actually use. Conventional loans run through automated underwriting can approve total debt-to-income ratios up to 50% with compensating factors like strong credit or cash reserves, which is why the 28% rule isn't the real qualifying limit.

At $400,000 this matters a lot. A buyer earning $75,000 who assumes housing must stay near 28% of income might rule themselves out, when in reality, with good credit and manageable debts, they may qualify comfortably. As a broker who runs files through Fannie Mae and Freddie Mac automated underwriting across 240-plus wholesale lenders, I see these higher-ratio approvals regularly when the overall file is strong. The guideline keeps you comfortable. The real limit keeps you in the game.

What else do I need besides the down payment?

Beyond the down payment, budget for closing costs and a small reserve. Closing costs on a $400,000 purchase typically run 2% to 5% of the price, so about $8,000 to $20,000, covering lender fees, title, escrow, and prepaid taxes and insurance.

There is help available here too. Down payment assistance programs in many states can cover part of your down payment and some closing costs, and sellers can contribute toward closing costs as part of the deal. Between low-down-payment loans and assistance, the cash needed to buy a $400,000 home is often smaller than buyers assume. I am Emmett Clark, a mortgage broker licensed in 18 states with more than 20 years of experience, and mapping the lowest-cash path into the right home is a big part of what I do.

How much house can I afford on a $100k salary?

A $100,000 salary comfortably supports a $400,000 home in most cases, and often more. At $100,000 a year with modest other debts, a $400,000 purchase typically lands well within qualifying range even at conservative debt ratios.

If your other monthly debts are low and your credit is strong, $100,000 in income may stretch to a higher price. If you carry significant car or student loan payments, those eat into your ratios and pull the number down. The exact figure is worth running with a broker, and it sits inside the broader guide to buying a home if you want to see how the pieces connect, because your debt profile moves it more than the salary alone does.