The ratio that rules the file
Lenders divide your total monthly debts - the new housing payment plus cars, student loans, and card minimums - by your gross monthly income. Most programs approve up to 43-50% depending on compensating factors. That single ratio, not a salary threshold, is what qualifies you.
Work an example
Household income of $9,000/month with $700 of existing debts, at a 45% DTI cap, supports about $3,350/month of housing. Depending on rates, taxes, and insurance, that is roughly a $420,000-$470,000 purchase with 5% down. Same income with a $700 car payment and $400 in student loans? The budget drops by six figures.
Income lenders can count
Base salary, documented overtime and bonus history (usually two years), self-employment net income, rental income at 75%, and support payments with a track record. Cash income without a paper trail cannot be counted - which is a planning conversation, not a dead end.
Raise your budget without a raise
Paying off a car or consolidating cards often adds more buying power than a salary bump. Every $100/month of debt eliminated adds roughly $15,000-$20,000 of purchase budget. We run this optimization for clients constantly - sometimes six months before they buy.
