What salary do you need for a $400,000 mortgage?

Quick answer

The salary needed for a $400,000 mortgage depends on your debts, credit, down payment, and interest rate. Lenders often use a debt-to-income (DTI) guideline that keeps total monthly debt, including the mortgage, below roughly 36–45% of gross income. If a $400,000 mortgage results in a total housing payment around the low-$3,000s, many borrowers might need roughly $90,000–$110,000 in annual income, assuming modest other debts. Your exact requirement may be higher or lower depending on taxes, insurance, and obligations like car loans or student loans.

What lenders actually look at (and why the range is wide)

When you ask “what salary do I need,” you’re really asking how your payment fits into lender guidelines and your budget. The big variables are:

• Total housing payment: principal + interest + property taxes + homeowners insurance + HOA (if any) + mortgage insurance (if any)
• Other monthly debts: car loans, student loans, credit cards, personal loans, child support, etc.
• Down payment: affects loan size and whether mortgage insurance applies
• Interest rate: changes the payment a lot on a $400,000 loan
• Credit profile: influences pricing, PMI cost, and available loan programs

That’s why two borrowers buying similarly priced homes can need very different incomes: one has minimal debt and a strong down payment; the other has a car payment, student loans, and higher insurance costs.

The DTI rule of thumb (36–45% isn’t a “goal”)

Debt-to-income ratio compares your monthly debt payments to your gross monthly income. Many lenders like to see total monthly debts (including the mortgage) under about 36%, but approvals can extend higher depending on loan program, compensating factors, and your overall profile - often into the low-to-mid 40% range.

Here’s the practical takeaway: an approval ceiling is not the same as a comfortable budget. If your payment only works at the high end of DTI, you may feel “house poor” even if the loan is technically approvable.

Why the interest rate matters so much on a $400,000 mortgage

On a large loan balance, small rate changes can move your monthly principal-and-interest payment by a meaningful amount. That’s why salary estimates are often a range (like $90k–$110k) instead of a single number.

It also explains why buyers sometimes feel fine at one rate and stretched at another - even if the home price didn’t change. The more you can put down, the more you reduce this sensitivity by borrowing less.

Don’t forget the “all-in” housing payment (PITI + extras)

Many people estimate affordability using only principal and interest. For a realistic salary target, you want the full monthly housing cost:

• PITI: principal, interest, taxes, and insurance
• PMI/MIP: if your down payment is small or the program requires it
• HOA dues: if applicable (condos and many planned communities)

Taxes and insurance can vary widely by location, and they can rise over time. If you’re estimating a salary target, add a buffer so you’re not surprised by escrow changes.

A practical way to estimate the salary you’ll need

If you already have a rough monthly housing payment in mind, you can back into an income range using DTI as a quick filter - then sanity-check it with your actual monthly budget.

1. Estimate your total monthly housing payment (include taxes/insurance and any HOA/PMI).
2. Add your other required monthly debts (car, student loans, minimum credit card payments).
3. Divide total monthly debts by the DTI percentage you want to stay under (many people aim lower than max approval).
4. Convert the result to annual income (multiply by 12) to get a rough salary range.

This isn’t a replacement for underwriting, but it’s a helpful way to avoid chasing a home price that only works at the edge of your budget.

Check your numbers with calculators

The fastest way to get confident is to estimate your all-in payment, then compare it to your income and debts.