How lenders look at your income and debt
Most lenders calculate your debt-to-income ratio, or DTI, to decide how much you can borrow. They divide your total monthly debt payments by your gross monthly income. Keeping that ratio at or below 43% is a common threshold, though some loan programs allow higher ratios under certain conditions. The lower your existing debts, the more room you have for a mortgage payment.
Down payment and loan program matter
A larger down payment reduces the amount you need to borrow, which lowers your monthly payment and can make a $300k purchase more manageable on a $50k salary. Programs backed by the FHA or other agencies may accept lower down payments, but they also add mortgage insurance costs. Available programs and their limits can change, so confirming current guidelines with a lender is always a smart step.
Other costs to factor in
In Indiana, property taxes, homeowners insurance, and any HOA fees add to your monthly housing costs beyond the loan payment itself. These expenses vary by county and neighborhood. Running a full monthly cost estimate before you commit helps you avoid surprises and confirms whether a $300k home fits comfortably within your budget.