For a general idea of your home buying power, multiply your annual gross income by 2-1/2. For example, if you have a household income of $50,000, you might be able to qualify for a $125,000 home. The actual number may be more or less, depending upon your individual situation, debts, and credit history.
Your gross annual income is the income you earn in a year before taxes and other deductions.
Under certain circumstances, it may also include rental income, self-employed income, and income from alimony, child support, public assistance payments, and retirement benefits.
Keep in mind that just because you qualify to buy a certain amount, it does not mean that you can afford or be comfortable with the monthly payments. You need to decide for yourself if you can live comfortably with the amount of your suggested monthly mortgage payment. Consider your particular circumstances and your future financial needs and goals.
