Can I afford a $250K house on $40K salary?
Purchasing a $300,000 home on a $100,000 salary is generally considered well within the realm of affordability. This house price is exactly 3 times your annual income, which falls squarely into the recommended "3-to-4-times" borrowing rule. With this salary, you will likely have a more manageable debt-to-income ratio, making it easier to secure a competitive mortgage rate. Even after accounting for property taxes, homeowners insurance, and utilities, your monthly housing expenses should comfortably fit within a reasonable percentage of your monthly take-home pay, leaving you with enough discretionary income to handle other expenses, save for retirement, and build a healthy emergency fund without significantly straining your financial stability.