I'm using this guide to pick some spots to use as an example.

Let's see if we can afford a 3 bed 2 bath 1,500 square foot home near Newark.

Nutley

Here's a listing

https://www.zillow.com/homedetails/97-Satterthwaite-Ave-Nutley-NJ-07110/82656360_zpid

$701k sales price for 3 bed 3 bath and 1,534 sq ft

If you did 20% down payment ($140,200) then this is how much you'd have to make:

• Lender minimum: $115,339
• 25% net income: $360,000
• 30% gross: $192,193

Rutherford

https://www.zillow.com/homedetails/135-Wheaton-Pl-Rutherford-NJ-07070/38024502_zpid

$750k purchase price and 3 bed 2 bath 1,500 sq ft

• 49.99% gross (lender minimum): $118,368
• 25% net: ~$400,000
• 30% gross: $197,250

Clifton

https://www.zillow.com/homedetails/98-Ridgewood-Rd-Clifton-NJ-07012/52891555_zpid

$430,000 purchase price 1,600 sq ft and 3 bed 3 bath

• lender minimum: $74,412
• 25% net: $148,800
• 30% gross: $124,000

Maplewood

https://www.zillow.com/homedetails/18-Warren-Rd-Maplewood-NJ-07040/52636018_zpid

$855,000 purchase price 1,562 sq ft and 3 bed 2 bath

• Lender minimum: $138,500
• 25% net: $276,960
• 30% gross: $230,800

Elizabeth

https://www.zillow.com/homedetails/309-Summit-Rd-Elizabeth-NJ-07208/39995837_zpid

$620,000 purchase price for 4 bed 3 bath 1,664 sq ft

• Lender minimum: $94,632
• 25% net: $189,216
• 30% gross: $157,680

Reminder of the rules I'm using

The lender minimum is if you don't have any other debts.

The down payment I'm assuming is 20% even though you could put less down.

The rate I'm assuming is 6.2% (last when I checked mortgage news daily's average)

25% net rule is from Dave Ramsey.

The 49.99% gross income lender minimum would likely put you in a really tough spot unless you have other income that underwriting isn't taking into account.

30% gross seemed like a good middle ground.

This includes property taxes and an estimate on homeowners insurance.

Down payment assistance

If you need down payment assistance, here's the full guide, Newark's included in this too.