One of the most common questions I hear is: “How much money do I need to make to afford a decent house these days?” It’s an honest question—and the answer isn’t always as simple as plugging numbers into a calculator.

Let’s break it down.

What “Decent” Really Means

When someone says decent house, that can mean a $200,000 starter home for one family or a $500,000 new build in a suburban neighborhood for another. The good news? With the right financing, many buyers—especially first-timers—can find something that fits their budget without being “house poor.”

If you’re buying your first home, an FHA loan is often a great starting point. It comes with competitive rates, lower down payment requirements, and even down payment assistance programs.

The Math That Matters

Here’s a simple way to think about it:

Take your gross monthly income (before taxes).

• Example: $7,000/month combined household income.

Cut it in half.

• That’s $3,500 available for all debt payments.

Subtract your existing debts:

• Car payment: $500
• Credit cards: $500
• That leaves $2,500 for a mortgage.

With $2,500 for a mortgage payment, you could comfortably afford a home in the $300,000 range (depending on rates, taxes, and insurance).

Here’s the key: You don’t want to push your budget to the max. Buying at $200,000–$225,000 instead of $300,000 gives you breathing room to save, invest, and prepare for the future.

Setting Realistic Expectations

First-time buyers often picture the dream home: five bedrooms, three baths, 3,000 square feet. Reality check—you’re probably not buying your forever home on the first swing. And that’s okay. A solid, affordable starter home gets you into the game.

Buy smart, build equity, and before long, you may be turning that first home into a rental property and leveling up.

What About Investors?

For those thinking about buying rental properties, there are options like DSCR loans (Debt Service Coverage Ratio). These loans don’t rely on your personal income but instead look at whether the property’s rental income covers the mortgage payment. If it cash flows, it qualifies.

Common Buyer Mistakes to Avoid

• Expecting $0 down: Programs like USDA loans exist, but they come with income limits and restrictions. Most buyers will need some money at closing.
• Confusing pre-qualification with pre-approval: Pre-qualification is a “back of the napkin” guess. Pre-approval is the real deal, backed by underwriting. Sellers and agents take pre-approval seriously—and you should too.
• Ignoring APR: Don’t just look at the interest rate. The APR (Annual Percentage Rate) includes fees and costs that tell the true cost of your loan.

Manufactured Homes and Mobile Home Parks

Yes, financing is available for manufactured homes—even in mobile home parks where you’re leasing the lot. The lot rent (say, $500/month) gets factored into your debt-to-income ratio. The tricky part is older manufactured homes (pre-1976) or unique situations on private land. Those require a closer look.

Bottom Line

Owning a home is possible, but it requires honest math, realistic expectations, and the right guidance. Don’t chase the ceiling of what you qualify for—stay in your comfort zone, save the difference, and build wealth steadily.

If you’re ready to run your numbers or explore programs tailored for you, let’s talk. You can always find me at LarryTheHomeLender.com or shoot me a text at 360-580-4249.

⚡ Pro tip: Buying a home isn’t about impressing your neighbors—it’s about building a foundation for your future.