The short answer: To afford a $350,000 house, you need approximately $97,000/year with 20% down or $117,000/year with 3% down (conventional). Your monthly payment will run $2,250-$2,750 depending on your down payment and current interest rates.
$350,000 is right around the national median home price in 2026. In the suburban Southeast, Texas, and the Midwest, this buys a 3-4 bedroom family home in a solid school district. In higher-cost metros — Denver, Portland, Sacramento — $350K is more likely a townhome or an older property needing updates.
With 20% down ($70,000), you need roughly $97,000-$100,000 in household income. This is achievable for many dual-income households but challenging for single earners in many fields. The down payment is the biggest hurdle — saving $70,000 takes serious discipline, and many buyers at this price point use 10% or even FHA financing to get in sooner.
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Income Needed to Afford a $350,000 Home
Based on the 28% front-end DTI rule:
| Down Payment | Loan Amount | Monthly PITI | Income Required |
|---|---|---|---|
| 3% ($10,500) | $339,500 | $2,737 | $117,300/yr |
| 3.5% FHA ($12,250) | $337,750 | $2,723 | $116,700/yr |
| 5% ($17,500) | $332,500 | $2,681 | $114,900/yr |
| 10% ($35,000) | $315,000 | $2,541 | $108,900/yr |
| 20% ($70,000) | $280,000 | $2,259 | $96,800/yr |
Assumes 6.75% rate, 30-year term, $350/mo taxes, $140/mo insurance. PMI included for <20% down.
At the $350K price point, FHA loans remain an option in most counties. The 3.5% down payment of $12,250 is far more accessible than a 20% down payment of $70,000, but the trade-off is higher monthly costs due to mortgage insurance. For buyers who plan to stay in the home 5+ years and can save for 20% down, conventional financing saves money in the long run. For buyers who need to get into the market now, FHA is a legitimate tool.
Monthly Payment Breakdown at 20% Down
| Component | Monthly Cost |
|---|---|
| Principal & Interest | $1,816 |
| Property Tax (est.) | $292 |
| Homeowners Insurance | $146 |
| Total PITI | $2,254 |
How Rate Affects Required Income (20% down, $280K loan)
| Interest Rate | Monthly P&I | Total PITI | Income Needed |
|---|---|---|---|
| 5.5% | $1,590 | $2,028 | $86,900/yr |
| 6.0% | $1,679 | $2,117 | $90,700/yr |
| 6.75% | $1,816 | $2,254 | $96,600/yr |
| 7.5% | $1,957 | $2,395 | $102,600/yr |
| 8.0% | $2,055 | $2,493 | $106,800/yr |
Impact of Existing Debt (36% Back-End DTI)
| Monthly Debt Payments | Income Needed to Qualify |
|---|---|
| $0 | $75,100/yr |
| $200 | $81,800/yr |
| $400 | $90,100/yr |
| $600 | $100,200/yr |
| $800 | $112,600/yr |
Total Cash Needed at Closing
| Scenario | Down Payment | Closing Costs | Total |
|---|---|---|---|
| FHA 3.5% | $12,250 | $10,500-$17,500 | ~$26,000 |
| 10% | $35,000 | $10,500-$17,500 | ~$49,000 |
| 20% | $70,000 | $10,500-$17,500 | ~$84,000 |
Where $350,000 Buys a Home
| Region | Examples |
|---|---|
| Southeast | Charlotte, Raleigh, Jacksonville, Orlando |
| Midwest | Minneapolis, Kansas City, Columbus |
| Texas | Houston, San Antonio, Austin (farther suburbs) |
| Mountain | Salt Lake City (suburbs), Tucson, Albuquerque |
FHA vs. Conventional at This Price Point
At $350K, both FHA and conventional loans are viable. Here’s how to choose:
Choose FHA if:
- You have less than 10% saved for a down payment
- Your credit score is between 580-680
- You need flexibility on debt-to-income ratios
- You plan to refinance once you build equity (to drop MIP)
Choose Conventional if:
- You have 10-20% for a down payment
- Your credit score is 700+
- You want to avoid permanent mortgage insurance
- You may receive gift funds (conventional has fewer restrictions)
Tips for Buying at the $350K Price Point
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Shop rates aggressively — At $280K borrowed (20% down), a 0.25% rate difference saves ~$50/month or $18,000 over the loan’s life.
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Budget for post-purchase costs — Homes at this price often need updates. Set aside $5,000-$10,000 for Year 1 expenses.
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Consider a 2-1 buydown — In some markets, sellers will pay to reduce your rate for the first two years. Ask your agent.
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Don’t stretch to hit this number — If $350K puts you above 30% DTI, look at $300K homes instead. Being house-poor isn’t worth it.
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Get pre-approved early — At the median price point, competition can be fierce. Sellers prefer buyers with verified financing.
Related: Income Needed for a $300,000 House | Income Needed for a $400,000 House | Mortgage Affordability Calculator
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