With $100,000 down (20%) at 6.5% over 30 years, the principal and interest payment on a $400,000 loan is approximately $2,528. Adding property taxes and insurance brings the total to around $3,195 per month. Your actual amount depends on local tax rates and your chosen insurance coverage.

Ideally, saving 20% ($100,000) avoids PMI and gives you the best rates. However, conventional loans allow as little as 3% down ($15,000), and FHA loans require 3.5% ($17,500). Just know that a smaller down payment means a larger loan, higher monthly payments, and the added cost of mortgage insurance.

With a total monthly payment around $3,195, the 28% housing-cost rule suggests you'd need a gross annual income of roughly $137,000. If you're buying with a partner, combined income counts. Lenders also look at your total debt-to-income ratio, which should generally stay below 43%.