To afford a $400,000 house, your required income depends on factors such as down payment, interest rate, debt-to-income ratio (DTI), and other monthly debts. Here is a detailed breakdown:

• Experts recommend spending no more than 28% to 36% of your gross income on housing costs, including mortgage, taxes, and insurance

• With a typical mortgage interest rate around 6.99% and a 30-year term, assuming $600 in monthly debts and a DTI limit of about 36%, the estimated minimum annual salary needed to afford a $400,000 home varies by down payment size:

Down Payment| Minimum Annual Salary Needed
---|---
3%| ~$93,159
3.5%| ~$92,716
5%| ~$91,387
10%| ~$86,956
20%| ~$78,094

• A larger down payment reduces the salary needed to qualify for the mortgage because it lowers the loan amount and monthly payments

• Besides the down payment, upfront costs include earnest money (1-2% of purchase price), closing costs (3-6% of loan amount), and moving expenses, which you should budget for separately

• The median home price in the U.S. is around $400,000 to $426,000 in 2025, so these figures are representative of the current market

In summary, to comfortably afford a $400,000 house, you generally need to earn between approximately $78,000 and $93,000 annually, depending on your down payment and other financial factors. Budgeting for upfront costs and ongoing expenses is also essential.