Can one income qualify?
With national-average taxes and insurance, the full payment is about $2,107.59, so the 28% rule calls for about $90,325 of gross income. The U.S. median household earns $81,604, and the household median is above that threshold in 13 of the 50 states and D.C. A single earner near the median can often qualify if other debts are light, because the back-end limit only binds once car and card payments pass $602.17 a month.
What FHA adds
FHA charges 1.75% upfront, about $4,375 on this balance, which is usually rolled into the loan, plus an annual premium billed monthly. For a buyer with a credit score in the 600s, that can still beat conventional PMI. Compare both on the FHA calculator.
Down payment assistance
Most state housing agencies offer a second loan worth 3% to 5% of the price, which on a roughly $260,000 FHA purchase means $7,800 to $13,000. Programs and limits differ by state: see the buyer programs on the Texas, Ohio or Georgia pages.
Payment by rate and term
| Rate | 15-year | 20-year | 30-year | 30-year total interest |
|---|---|---|---|---|
| 5.5% | $2,042.71 | $1,719.72 | $1,419.47 | $261,010 |
| 6% | $2,109.64 | $1,791.08 | $1,498.88 | $289,595 |
| 6.5% | $2,177.77 | $1,863.93 | $1,580.17 | $318,861 |
| 7% | $2,247.07 | $1,938.25 | $1,663.26 | $348,772 |
| 7.4% | $2,303.35 | $1,998.72 | $1,730.95 | $373,142 |
| 7.5% | $2,317.53 | $2,013.98 | $1,748.04 | $379,293 |
| 8% | $2,389.13 | $2,091.10 | $1,834.41 | $410,388 |
Equity built on $250,000 in the first 10 years
Early payments are mostly interest: five years in, $13,693 of principal is gone and $236,307 remains. Ten years in, the balance is $216,507 after $174,221 of interest. The same decade on a 15-year schedule pays down $137,782.
FHA vs. conventional on a $312,500 home
A $312,500 price sits near the middle of the market in 21 of 51 states, which is where FHA and low-down-payment conventional loans compete hardest. If your credit score is in the high 600s or better, ask for both quotes: once PMI is priced for your score, the conventional loan may beat FHA from the first month, and its mortgage insurance can be removed later. The FHA row finances the 1.75% upfront premium and adds 0.55% annual MIP; PMI on the conventional rows is priced at 0.5%.
| Option | Down payment | Loan amount | Monthly payment incl. tax, insurance and MI | Income needed (28%) | Cash for down payment |
|---|---|---|---|---|---|
| Conventional, 20% down | $62,500 | $250,000 | $2,107.59 | $90,325 | $62,500 plus closing costs |
| Conventional, 5% down with PMI | $15,625 | $296,875 | $2,555.84 | $109,536 | $15,625 plus closing costs |
| FHA, 3.5% down | $10,938 | $306,840 | $2,639.35 | $113,115 | $10,938 plus closing costs |
Property taxes on a $312,500 home
Use $2,783 a year as the national benchmark (0.89% of value). The range is wide: $844 in Hawaii, $6,000 in Illinois. That $429.69 monthly spread is often bigger than the effect of a half-point rate change on this loan.
| State | Effective rate | Yearly tax | Monthly |
|---|---|---|---|
| Illinois | 1.92% | $6,000 | $500.00 |
| New Jersey | 1.89% | $5,906 | $492.19 |
| Connecticut | 1.66% | $5,188 | $432.29 |
| New Hampshire | 1.46% | $4,563 | $380.21 |
| New York | 1.45% | $4,531 | $377.60 |
Income needed for $250,000 at 28% and 36%
On a $250,000 loan the two rules cross at roughly $602 of other monthly debt: below that, the 28% housing test sets the income, and above it the 36% test does. Lenders often allow debt-to-income ratios above 36% with strong credit or reserves, but the 36% figure is a sensible budget ceiling.
| Other monthly debts | Income needed (28% housing rule) | Income needed (36% total-debt rule) | Income that satisfies both |
|---|---|---|---|
| $0 | $90,325 | $70,253 | $90,325 |
| $300 | $90,325 | $80,253 | $90,325 |
| $600 | $90,325 | $90,253 | $90,325 |
| $1,000 | $90,325 | $103,586 | $103,586 |
By state
| State | With tax & insurance | Share of median income |
|---|---|---|
| Alabama | $1,988.74 | 35.80% |
| North Carolina | $2,044.14 | 33.17% |
| California | $2,053.76 | 24.61% |
| Ohio | $2,141.66 | 35.59% |
| Florida | $2,157.85 | 33.31% |
| New York | $2,258.64 | 31.58% |
| Texas | $2,310.76 | 34.78% |
| Illinois | $2,354.28 | 33.95% |
FAQ
What is the monthly payment on a $250,000 mortgage?
$1,730.95 on a 30-year loan at 7.40%, or $2,206.73 on a 15-year loan at 6.71%, before escrow for tax and insurance.
How much cash do I need for a $250,000 loan?
With 20% down, $62,500 plus closing costs. With 3.5% FHA down on a home of about $259,000, about $9,100 plus closing costs, before any assistance.
Other amounts: $200,000 · $300,000 · $350,000 · $400,000 · $500,000
Rates: Freddie Mac PMMS, week of October 15, 2026. Taxes, income: Census ACS 2024. Insurance: NAIC 2023.