The monthly payment is only part of the picture. Here's what $400k actually costs and what income you need to qualify.
Quick answer: $400k is a stretch on $80k/year
At $80k gross income, the 28% rule puts your safe monthly payment at $1,867. A $400k home with 10% down costs roughly $2,720/month - that's 41% of gross income. Most lenders will flag this. If your income is $100k+ or you have minimal debt, it may still work. Run your exact numbers below.
You can afford a home around
$346,000
Based on your current income, debt, and housing cost assumptions.
Monthly Housing Budget
$2,570
This appears to be within a comfortable borrowing range.
Estimated Loan Amount
$306,000
Estimated Cash Needed (Down + Closing)
$50,000
Estimates based on your inputs. Actual results may vary. Terms →
Keep track of multiple affordability setups.
Lenders use the 28% rule as the ceiling for housing costs. Here's what that means by salary:
A $400k home with 10% down = ~$2,720/month
The down payment is just the beginning. Here's what you'll need in cash before closing on a $400k home:
With 20% down: ~$97,000 total upfront - but no PMI
If $400k feels like a stretch, these three levers move the number most:
Based on 6.8% interest rate, 30-year term, $5,000/year taxes, $1,500/year insurance. PMI estimated at 0.7% for under 20% down.
| Down payment | Loan amount | Monthly payment | Income needed | Verdict |
|---|---|---|---|---|
| 3.5% - $14,000 | $386,000 | $2,980/mo | $128k/yr | difficult |
| 5% - $20,000 | $380,000 | $2,890/mo | $124k/yr | stretch |
| 10% - $40,000 | $360,000 | $2,720/mo | $116k/yr | stretch |
| 20% - $80,000 | $320,000 | $2,480/mo | $106k/yr | manageable |
| 25% - $100,000 | $300,000 | $2,340/mo | $100k/yr | comfortable |
Income needed = monthly payment ÷ 0.28 × 12. Actual qualification depends on DTI, credit score, and lender.
Estimates based on your inputs. Actual results may vary. Terms →