This is how much you need to make to buy this $296,000 house in Charlotte, North Carolina
We're going to use an FHA loan, which is 3.5% down. That's $10,360
And this property will also need work from a contractor, but let's leave that out for now. Our interest rate is 5.8%
The loan amount is $285,640, and your monthly payment will be $1,677
You also have to pay taxes, insurance, and MIP. Taxes around $222, insurance $173
MIP is the extra money you'll pay because you put less than 20% down
Usually it's 0.75% of the loan amount every year. You take $285,640 and multiply that by 0.0075, divide that by 12, and you'll get $179 per month for MIP
Your total monthly payment then is $2,251. Now, banks want to make sure that that number doesn't exceed about 40% of your pre-tax income
So you take $2,251 and divide that by 0.4. That shows you need to make $5,628 per month
So in order to buy this $296,000 house, you need to make $67,536