What Income Do I Need to Afford a $300K House in Texas? Key Tips and Costs Explained

Buying a home in Texas is a major financial decision—but with the right preparation and guidance, it can also be a smart investment in your future. One of the most common questions homebuyers ask is: How much income do I need to afford a $300,000 house in Texas?

In this guide, we’ll break down the key costs involved in purchasing a home, explore how your income, credit score, and debt affect your eligibility, and offer expert tips from the mortgage team at Herring Bank. Whether you’re buying in Houston, Dallas, Austin, or a smaller Texas town, this article can help you understand what to expect and how to prepare.

✅ Quick Answer: What’s the Minimum Income to Afford a $300K Home?

To comfortably afford a $300,000 home in Texas, most lenders will want to see a minimum annual household income of $75,000–$85,000, depending on your debt, down payment, and interest rate. This assumes:

• A 30-year fixed-rate mortgage

• A 6.5% interest rate

• A 5%–10% down payment

• A debt-to-income (DTI) ratio under 43%

You can use our home loan calculator to estimate your monthly payment based on your specific scenario.

💰 Breaking Down the Monthly Mortgage Payment

Let’s take a closer look at what your monthly costs might include:

These numbers are estimates—actual costs can vary by location. For instance, homeowners in San Antonio may pay less in property taxes than those in Dallas, depending on local tax rates.

🧮 How Income and DTI Ratio Affect Affordability

Your debt-to-income (DTI) ratio is one of the most important factors lenders consider. Most mortgage lenders look for a DTI under 43%, meaning no more than 43% of your monthly gross income should go toward debt payments.

If your estimated monthly mortgage payment is $2,500, you would need to earn around $6,000 per month (or $72,000 per year) to qualify—if you have little to no other debt.

Have student loans, car payments, or credit card debt? That number rises quickly. Speak with a local Texas mortgage lender at Herring Bank to assess your individual situation.

🏡 Down Payment Options in Texas

You don’t always need 20% down. In fact, several loan programs allow you to buy a home with as little as 0–5% down:

• FHA Loans – 3.5% down

• VA Loans – 0% down for eligible veterans

• Conventional Loans – 3%–5% down options

• First-time buyer programs – May offer grants or assistance

If you’re unsure which loan fits your needs, our home loan experts are here to help you compare options.

🔍 Other Costs to Keep in Mind

Aside from your mortgage payment, consider these other homeownership costs:

• Closing costs: 2%–5% of the purchase price ($6,000–$15,000)

• Home maintenance: Budget 1% of home value annually

• HOA fees: May apply in certain communities

• Utilities and property upkeep

We recommend budgeting an extra 10–15% above your estimated monthly payment to account for these expenses.

👉 Explore our local pages:

• Houston VA Loans

• Corpus Christi Mortgages

• Dallas VA Loans

• San Antonio VA Loans

✅ Tips to Strengthen Your Home Loan Application

If your income is just under the threshold, try these tips:

• Improve your credit score to qualify for a better rate

• Pay down debt to reduce your DTI ratio

• Get pre-approved with a trusted lender like Herring Bank

• Consider co-borrowing with a partner or family member

📝 Final Thoughts

A $300K home is within reach for many Texas residents—especially if you understand how income, credit, and loan programs affect your affordability. Use Herring Bank’s tools and resources to evaluate your finances, explore mortgage options, and move forward with confidence.

👉 Ready to start your homeownership journey? Get pre-qualified today.