When you’re in the market for a home, saving up for a hefty down payment typically won’t be enough to secure a mortgage. Lenders also expect borrowers to have a decent credit score — 90% of home buyers had a score of at least 650 in the first quarter of 2019 — and an income high enough that they are confident you’ll be able to make your mortgage payments each month.
The national qualifying income needed to buy a home is $55,575 with 10% down, and $49,400 with a 20% down payment, according to data from the National Association of Realtors’ Metropolitan Median Area Prices and Affordability index from the fourth quarter of 2019.
The data assumes a 3.67% mortgage rate for a 30-year fixed mortgage, and a monthly principal and interest payment limited to 25% of a resident’s income.
Depending on where you live, though, the salary you need to qualify for a mortgage varies widely. These are the incomes you need to afford a home in 15 major U.S. metropolitan areas, ranked from lowest median home price to highest.
U.S. average
- Salary required with a 10% down payment: $55,575
- Salary required with a 20% down payment: $49,400
- Median home price: $233,800
Tulsa, Oklahoma
- Salary required with a 10% down payment: $35,237
- Salary required with a 20% down payment: $31,322
- Median home price: $174,300
Detroit, Michigan
- Salary required with a 10% down payment: $39,361
- Salary required with a 20% down payment: $34,988
- Median home price: $194,700
New Orleans, Louisiana
- Salary required with a 10% down payment: $45,184
- Salary required with a 20% down payment: $40,163
- Median home price: $223,500
Atlanta, Georgia
- Salary required with a 10% down payment: $46,902
- Salary required with a 20% down payment: $41,691
- Median home price: $232,000
Philadelphia, Pennsylvania
- Salary required with a 10% down payment: $48,883
- Salary required with a 20% down payment: $43,452
- Median home price: $241,800
Chicago, Illinois
- Salary required with a 10% down payment: $51,491
- Salary required with a 20% down payment: $45,770
- Median home price: $254,700
Dallas, Texas
- Salary required with a 10% down payment: $54,301
- Salary required with a 20% down payment: $48,268
- Median home price: $268,600
Nashville, Tennessee
- Salary required with a 10% down payment: $56,566
- Salary required with a 20% down payment: $50,281
- Median home price: $279,800
Phoenix, Arizona
- Salary required with a 10% down payment: $83,069
- Salary required with a 20% down payment: $73,839
- Median home price: $295,400
Portland, Oregon
- Salary required with a 10% down payment: $59,719
- Salary required with a 20% down payment: $53,084
- Median home price: $410,900
New York, New York
- Salary required with a 10% down payment: $86,526
- Salary required with a 20% down payment: $76,912
- Median home price: $428,000
Denver, Colorado
- Salary required with a 10% down payment: $92,591
- Salary required with a 20% down payment: $82,303
- Median home price: $458,000
Boston, Massachusetts
- Salary required with a 10% down payment: $97,605
- Salary required with a 20% down payment: $86,760
- Median home price: $482,800
San Francisco, California
- Salary required with a 10% down payment: $200,143
- Salary required with a 20% down payment: $177,905
- Median home price: $990,000
San Jose, California
- Salary required with a 10% down payment: $251,897
- Salary required with a 20% down payment: $223,900
- Median home price: $1,246,000
This story first appeared on CNBC.com
U.S. & World
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