First-Time Buyers
How Much House Can You Afford on $80K-$120K Income in 2026?
Real numbers showing how much home buyers can afford at different income levels, factoring in rates, taxes, insurance, and down payment options.
What You Will Learn
How much house you can afford depends on your income, existing debts, down payment size, current interest rates, property taxes, and insurance costs. Patrick breaks down real-world numbers for buyers earning between $80,000 and $120,000 per year in Texas so you can see exactly where your budget lands.
In this video, Patrick walks through the affordability calculation step by step. He shows how different down payment amounts, interest rates, and monthly debt obligations affect the home price you can qualify for. The goal is to help you understand your target price range before you start touring homes so you know exactly what to ask for when you get pre-approved.
Rates and numbers change over time:
Interest rates, tax rates, and insurance premiums fluctuate. The dollar figures Patrick discusses in this video are examples based on conditions at the time of recording. Contact Patrick for a personalized affordability analysis using current rates and your specific financial picture.
Key Takeaways
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Your Debt-to-Income Ratio Sets Your Maximum Payment
Lenders use your front-end (housing only) and back-end (total debt) ratios to determine what you qualify for. Patrick explains how car payments, student loans, and credit card minimums affect your buying power.
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Down Payment Size Directly Affects Monthly Payment
A larger down payment means a smaller loan amount and lower monthly payment. But Patrick also covers low down payment options including FHA, conventional 3% down, USDA zero down, and VA zero down so you know your options if savings are limited.
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Texas Property Taxes Are a Major Factor in Your Payment
Texas has no state income tax but higher property taxes. Patrick shows how tax rates in different San Antonio area counties affect your estimated monthly payment and why the same home price in different neighborhoods can mean very different monthly costs.
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Pre-Approval Gives You Your Real Number
Online calculators give a rough estimate but only a full pre-approval with a lender gives you your exact buying power. Patrick emphasizes that getting pre-approved should be step one before you look at homes, not something you do after you find one you like.
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Affordability and Comfort Zone Are Two Different Numbers
What a lender says you qualify for and what you are comfortable paying each month are not always the same. Patrick encourages buyers to run their own budget and decide their personal comfort level, then use that target when working with their lender.
Continue Learning
Read the companion affordability blog post for more detailed breakdowns and example scenarios at different income levels.
Patrick answers common affordability questions including how your credit score and debt load affect what you can borrow.
Get the First-Time Homebuyer Roadmap for a complete step-by-step guide that starts with pre-approval and budget planning.
Want to Know Exactly How Much House You Can Afford?
Patrick can run your numbers with current rates and help you find a realistic price target that fits your monthly budget.
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