I write educational posts on buying your home for the first time. I even posted my homebuying book at r/NewbHomebuyer go check it out

Not sure if he's changed his stance, but here's what I remember:

  • 20% down payment
  • 15 year mortgage
  • 25% of your net income allowed toward your housing payment.

The median home price is around $420,000, and 15-year rates are sitting at about 6.61% right now.

Part 1: The minimum income needed for the Ramsey 25% net take-home rule

This is the number that actually matters if you're following Dave's rule. It factors in property taxes, homeowners insurance, state income tax, federal tax, FICA, and a 6% 401k contribution. That's why states like TX (no income tax) and UT (4.65% income tax) shake out differently even at the same home price.

State Minimum Income
NJ $331,076
CT $299,681
NE $298,398
VT $298,347
IL $294,574
WI $286,095
NY $285,760
MN $284,908
KS $284,889
IA $279,097
RI $275,458
TX $273,850
OR $272,481
ME $272,081
OK $270,214
CA $266,876
MI $266,535
OH $263,887
MA $261,722
MD $259,766
PA $258,703
NH $258,583
HI $258,555
GA $257,403
MO $256,668
NM $256,007
MT $255,779
MS $254,717
AR $254,086
VA $251,690
FL $250,891
SD $250,150
KY $249,842
SC $249,778
LA $248,763
DE $247,505
NC $247,499
ID $246,697
ND $245,946
CO $245,892
IN $244,392
WV $241,960
AL $240,382
UT $238,692
AK $238,118
AZ $236,301
WA $230,205
TN $228,101
WY $224,509
NV $222,680

Part 2: Minimum for a lender

This is the bare minimum income a lender would approve you at, pushing the 49.99% back-end DTI ceiling that Fannie Mae and Freddie Mac allow. Approvable does not mean affordable.

State Minimum Income
NJ $94,069
TX $93,865
IL $93,221
NE $91,885
CT $91,729
KS $89,597
NH $89,164
VT $88,912
NY $88,284
IA $87,740
WI $87,296
FL $86,796
OK $86,712
RI $86,604
SD $86,568
OH $86,456
MI $86,288
PA $85,468
ME $84,175
MN $84,043
MA $83,979
AK $82,863
MO $82,783
MD $82,507
ND $82,383
GA $82,279
MS $81,987
AR $81,927
KY $81,775
IN $81,291
NM $81,271
MT $81,207
LA $81,171
NC $80,807
OR $80,763
WA $80,427
VA $80,239
CO $80,171
CA $80,051
TN $79,779
AZ $79,527
SC $78,938
ID $78,778
WY $78,622
WV $78,222
DE $78,074
NV $77,990
AL $77,910
UT $77,822
HI $75,786

Part 3: The 30%-of-your-gross rule

A popular middle-ground rule of thumb. It doesn't account for income tax, just a flat 30% of your gross going toward housing.

State Minimum Income
NJ $156,751
TX $156,411
IL $155,338
NE $153,111
CT $152,851
KS $149,298
NH $148,578
VT $148,158
NY $147,111
IA $146,204
WI $145,464
FL $144,631
OK $144,491
RI $144,311
SD $144,251
OH $144,064
MI $143,784
PA $142,418
ME $140,264
MN $140,044
MA $139,938
AK $138,078
MO $137,944
MD $137,484
ND $137,278
GA $137,104
MS $136,618
AR $136,518
KY $136,264
IN $135,458
NM $135,424
MT $135,318
LA $135,258
NC $134,651
OR $134,578
WA $134,018
VA $133,704
CO $133,591
CA $133,391
TN $132,938
AZ $132,518
SC $131,538
ID $131,271
WY $131,011
WV $130,344
DE $130,098
NV $129,958
AL $129,824
UT $129,678
HI $126,284

Part 4: Combined so you can see it all side by side

State Lender 30% Gross 25% Net
NJ $94,069 $156,751 $331,076
TX $93,865 $156,411 $273,850
IL $93,221 $155,338 $294,574
NE $91,885 $153,111 $298,398
CT $91,729 $152,851 $299,681
KS $89,597 $149,298 $284,889
NH $89,164 $148,578 $258,583
VT $88,912 $148,158 $298,347
NY $88,284 $147,111 $285,760
IA $87,740 $146,204 $279,097
WI $87,296 $145,464 $286,095
FL $86,796 $144,631 $250,891
OK $86,712 $144,491 $270,214
RI $86,604 $144,311 $275,458
SD $86,568 $144,251 $250,150
OH $86,456 $144,064 $263,887
MI $86,288 $143,784 $266,535
PA $85,468 $142,418 $258,703
ME $84,175 $140,264 $272,081
MN $84,043 $140,044 $284,908
MA $83,979 $139,938 $261,722
AK $82,863 $138,078 $238,118
MO $82,783 $137,944 $256,668
MD $82,507 $137,484 $259,766
ND $82,383 $137,278 $245,946
GA $82,279 $137,104 $257,403
MS $81,987 $136,618 $254,717
AR $81,927 $136,518 $254,086
KY $81,775 $136,264 $249,842
IN $81,291 $135,458 $244,392
NM $81,271 $135,424 $256,007
MT $81,207 $135,318 $255,779
LA $81,171 $135,258 $248,763
NC $80,807 $134,651 $247,499
OR $80,763 $134,578 $272,481
WA $80,427 $134,018 $230,205
VA $80,239 $133,704 $251,690
CO $80,171 $133,591 $245,892
CA $80,051 $133,391 $266,876
TN $79,779 $132,938 $228,101
AZ $79,527 $132,518 $236,301
SC $78,938 $131,538 $249,778
ID $78,778 $131,271 $246,697
WY $78,622 $131,011 $224,509
WV $78,222 $130,344 $241,960
DE $78,074 $130,098 $247,505
NV $77,990 $129,958 $222,680
AL $77,910 $129,824 $240,382
UT $77,822 $129,678 $238,692
HI $75,786 $126,284 $258,555

Sooo if you follolwed Ramsey's rules you'd have to make 3x the median income to buy the median house.

I strongly recommend setting up a budget before searching for homes.

I write educational posts on buying your home for the first time. I even posted my homebuying book at r/NewbHomebuyer here's the book on reddit.

Originally shared by u/SamTMortgageBroker in r/NewbHomebuyer — view the original thread.