This is How Much House You Can Get On a $65K Salary

[@JebSmith]

✅ - Work Directly with My Team - www.jebsmith.net/referral

[@Vakator-29]

I rarely see anything under 250k and its usually 60+ years old. The houses that were 100k in 2009 are 300k+ today.

[@FollowingBlaze]

@@Vakator-29 60 year old houses are better than the brand new ones today lol

[@kikirichy48]

65k earner with a 200k loan here. Based off my net income I'm at 35% of my salary goes to my mortgage. I have gigs and other things to get extra money as well as paying all my bills/car/insurance/loan. Personally, it is very doable to live of off 65k in my situation but you are not comfortable by any means. It's hard to save. It's hard to spend. I am 1 unfortunate situation away from disaster. I was qualified for 300k FHA but I am so glad I went with 200K conventional. I would have been drowning if I went for the 300k. My advice to you is don't ever go max loan with FHA. I don't know who though it was a good idea to set those limits but I believe they set up most average people like me for failure. Good video! Very clear and informative

[@johnnymichael1804]

@@kikirichy48 damn bro. Sorry about your hoss loss. I'm at 300k with a 5.5k mortgage. On a 900k house

[@BREEZYM6015]

I make $3,600 a month net and live in Las Vegas. I'm single and ended up buying a 2 bed, 2 bath townhome in 2023 with a mortgage and HOA of $1,900 combined on a loan amount of $203,500. I don't have a car payment, credit card debt, or student loan debt so that helps keep expenses down.

[@TracyH29]

Somebody needs to tell Dave Ramsey that the same advice that worked last century doesn't work today.

[@usovvlad28]

Somebody need to tell you that your mindset doesn’t work today

[@TracyH29]

​@usovvlad28 not sure what you mean by that. I'm not the one who thinks the same financial advice works today that worked 30 years ago.

[@TheSonyExperience]

You may not like his advice and it may be difficult, but people spending more than 25% of their net on average run into issues. They are at high risk for any sudden changes. Increases in insurance, property taxes, or sudden repairs. There are many woman crying about that very issue on tik tok

[@JebSmith]

In higher cost areas, his guidelines make it nearly impossible to be a homeowner. I do believe his guidelines are too conservative but again his goal is to help protect people from themselves.

[@bait_0138]

dumb logic, he's not wrong, nobody should have to spend more than 25% of their monthly expenses on housing unless they want luxury. and his advice is more applicable for people who are in debt, single/couples, or families in hardships

[@CSB3747]

5 families to a house, that's how you afford a house.

[@JebSmith]

That's definitely happening. I see a lot of multigenerational living.

[@Ganon64-s4k]

I make $130k a year and still can’t get approved for a mortgage!!! I hate Southern California!

[@alvinsingh9750]

Time to move to north California

[@JebSmith]

Unfortunately, you need around $200K to be able to purchase the median home in SoCal and even then it would be tight especially at these rates.

[@chevymc87]

@alvinsingh9750 Please don't. Too many people are moving here already.

[@ncheelz4life]

Save that money and leave!

[@MonicaHolly143]

Becuz that is just a regular salary in cali thats like 80k in other states which means get ur bread up

[@justinmirche]

This video makes it clear how challenging it can be to buy a home on $65K, especially with today’s rates. It’s really helpful to see the different approaches like the 28/36 rule and how FHA loans can provide more flexibility. I appreciate your emphasis on knowing your personal financial limits rather than just relying on lender calculations - so important in this market. Thanks for putting this together!

[@vquez3291]

Finally someone who states the obvious. Im in the East Coast and rent prices surpass that 2500 and for the average person wages are about the median SmH

[@JebSmith]

Where on the east coast?

[@drewvogel1815]

Jeb, this was absolutely my favorite video you've ever made. Very informative. Thank you very much for this. This is EXACTLY what I needed to hear.

[@JebSmith]

Glad it was helpful! Appreciate the comment

[@Plenty_for_Twenty]

I pulled 120k last year, 400k house, and I'm over 36% income:mortgage. Not stressing. My lifestyle is easily supported by the remainder. No other debt. Save about 30% income, too. Obviously, I would like to be lower on spending for a house, and the 28/36 is a good target. Current markets aren't really dictating that anymore unless you're a very high income earner. It is critical that you remain debt free, avoid income creep, and save. Saving:income ratio is king. I knew before buying I'd be okay going north of these guidelines.

[@jeffersonbuckles8905]

@@Plenty_for_Twenty When you make double it's twice as easy, go figure. Lol

[@susievidal4134]

65k a year will buy you a brown carton box from the grocery store here in California and my husband made 105k this year and we still can't buy a home with an affordable mortage under 5k I'm leaning towards buying a vacation home in Florida than eventually moving there

[@brianm6924]

@@susievidal4134 Please skip Florida

[@usovvlad28]

I know a lot of people who make even less than that, still owning a home. At the end of the day it’s not how much you make, how much you spend… Plan ahead, budget.

[@jaybartgis5148]

Are you a liberal? Then literally f off.

[@FeelingPeculiar]

​​​@@usovvlad28Completely incorrect. Where can you buy a home with a $30k yearly salary? Even $65k gets you nothing in the vast majority of metros in the USA.

[@JebSmith]

Yes, you just need to meet the dental income requirements for the property that you’re looking to purchase.

[@lifeforgod07]

Money is different these days. Inflation pushes you into higher tax brackets. So a 10% bump in wages does not match a 10% bump in prices when taxes get involved. We really didnt feel like we were getting anywhere with 200k total income. When we were pushing 300k+, thats actually when we felt like we were getting somewhere

[@ArneyO7]

Dont forget about closing costs. If your down payment is 15k youre probably spending an additional 10k in buyers costs at closing for the mortgage, appraisal, inspection, title, etc. No one really ever mentions that.

[@AVworld.]

I dont plan on buying a home soon but I do know that I should be saving for phantom costs. Its the main thing I see never budget for especially with cars

[@JebSmith]

Always..............There are always things that could/will come up.

[@jamestellsthetruth]

And houses are 5,000 a month...which is why the market will crash.... nobody can afford those rents... the people that can bought.. property taxe and insurance have risen too

[@AlxndrHQ]

@@jamestellsthetruth there’s not going to be a crash. But properties will sit with low sales volume, just as we’re seen.

[@TheSonyExperience]

Here’s the answer, get more income. I know you all won’t like that, but it’s is what it is. Or you just keep renting. You can either make more income or live on nothing and get as big of a down payment as you can. There is a never ending amount of people who are immediately at risk of losing that home when insurance goes up, property taxes, and sudden repairs. Going into to a home only dropping 3.5-5% down tells me you probably don’t have a 3-6 month emergency fund. Buying a home without contemplating these things will leave you reading foreclosure notices at the dining room table.

[@TreXsJournal-Coming-Soon]

So dumb 😂 Oh, you're sick, just get better. Oh, you can't find a job, just save money instantly. Oh, you can't find a job, I misheard that, I apologize: just make more money. Oh, you're already working at the highest level possible in the job you racked up a small house worth of debt to get, just make more money. I can't stress how much you'd have to be a ret* to have this condescending train of thought. Shall we continue? Oh, you racked up debt just to make it this far cause you couldn't make any real money until now? That's easy just save almost all of your check that you're already spending paying back every penny you've borrowed to make it to where you have a stable job. You can't make this s* up. Oh, you can't afford a home at $1k: just keep paying that $1900 rent to avoid living beyond your means. This s* is so so so dumb.

[@hectornonayurbusiness2631]

I actually agree with Dave Ramsey here. Not on the 15 year loan part, but everything else I do. These prices and rents are too high. Everyone should boycott them.

[@Myraisins1]

For 65k salary your home should be about $220k

[@JebSmith]

What are you basing that on?

[@Myraisins1]

@@JebSmith Smart girl math. 😆

[@Kano_Jig]

25% of Net income per month has been my max for the past 15 years of adulthood. It has left me with tons of expendable money to enjoy. Interesting video.

[@TreXsJournal-Coming-Soon]

You're rich. You understand nothing about truly "needing a loan" paid for essentially by the rest of us. You're a leach. Not sure I spelled that right 🤔 interesting.

[@lisaaustin4561]

consider Dave Ramsey’s age. He’s my age. 30 years ago that advice was good. Now. Forget it! The people that can afford that pay cash they do not even need a loan

[@Francisco-po1cf]

If you’ve been waiting for 5 years for a crash and don’t save much money, you basically can’t afford a decent home in the most crime ridden area on a $65k income. Especially if you’re still single. I know some people who had the income and savings to buy but decided to wait for a foreclosure but got priced out instead. To buy a decent townhome today, I think you’d need to have a substantial amount of money in savings or investments to have a decent payment. You may even need a second full time income. With increasing rents and other costs, getting a home is even harder than it used to be.

[@jesse_-]

Yes you can. There are places in the US where real estate did not boom. I was in Columbus, GA about a years and a half ago, to visit my nephew at fort benning, and there decent starter houses there for around $150k. That might be not the best neighborhood, but it’s not too bad down there and it has a nice downtown and river walk. You just have to be willing to relocate if you want to afford a house. Plenty of people used to move around like it was just normal, but most younger folks don’t do that anymore.

[@jamesj.7750]

The problem is that loans are given out on gross income. I made $75K last year. After fed tax, state tax, medicare, SS, medical ins, vision, dental, and 401k, my monthly net is $4200. Now throw in utilities that are 30% higher...

[@xVizionaryYT]

This situation fits me perfectly. I make about 65k a year single income family. In the market for a home with a wife and two little kids in the Dallas-Ft Worth area. The cost of homes here is sky rocketing in the last couple years like most places. We can’t find a home 250K or less, that is big enough for our family, with decent schools, and a safe neighborhood. We have about 50k to put down, credit is good enough not great. Even at 250k with a 20% down payment of 50k. A monthly payment would be in the ball park of $2,000. Not including utilities, internet, etc. it’s not feasible at all, and the worst part is that rent for a 3bedroom apartment is gonna be just about the same cost if not even more expensive, even if we downsize to 2bed it’s nearly impossible.

[@xVizionaryYT]

Even if my wife gets a job with her degree she won’t make more than about 40-50k max. That hardly offsets the cost of childcare at about $1500/month per child.

[@dixielandproductionco.6989]

Thanks for the update and notification smashed the thumbs up 👍 good stuff

[@JebSmith]

Much appreciated

[@jklov8590]

I have never even seen a livable and reliable home that is 100K recently?

[@spglazestewart]

@@jklov8590 go to North Dakota, plenty over there in that price range and less that look nice.

[@marcellowheeler88]

I have a 270k dollar house brought brand new last fall. My disability covers my mortgage and water/electric bill.

[@JebSmith]

That's awesome............not the disability but the fact that it covers your payment. Sorry to hear about your disability.

[@marcellowheeler88]

@JebSmith I'm still mobile and active. VA disability. I told my agent when house shopping that I want something my disability can cover God forbid something happens to me.

[@mega408]

The whole point DR is saying:You can’t afford to buy a house unless you make more. The problem is, instead of stop buying to get the prices to drop, banks come up with creative ways so people will borrow more (if that makes sense) It’s sad that so many fall for this.

[@Waveforevafilms_]

Salute actually in the process rn

[@pauljackson171]

Also if considering joining the military (or are serving, US at least), to consider the VA loan also up ending the loan size you can qualify for.

[@austinesser]

I agree with Dave up until the 15 year mortgage (unless you can easily afford it and be happy with the home you’d live in). People are spending more and more because the market is telling them to or they will be forced to rent forever. The standard has changed but not in a good way. Now the income is more focused on living in a home than spread to other activities/investments. I couldn’t imagine buying the same home I have now with what the interest rates are and home values are. I’d be spending an extra $1,200/mo in mortgage from a home I bought in 2022. My life would be drastically different in how my money would be spent in this new age of home buying. The buyers got desperate and will have buyers remorse in the coming years. Don’t over extend yourself for a home. 25% of your income after taxes snd a 30 year loan should be the standard. If you don’t like the homes that are available in that demo, then don’t buy one

[@stefanforest7582]

Tja... it is a big question about how much risk someone wants to take. With Dave Ramsey, you may have a low risk if something goes wrong. You are not house poor. If you spend more than 25%, which probably most people have to do, your financial risk increases significantly. What happens if property taxes or HOA fees go up by 10% per year for the next five years? Will you lose your home or not? It is not about right or wrong, it is all about risk appetite. Of course, a realtor will push people to take higher risks because this increases the number of possible clients. This is highly beneficial, and a realtor does not care about what will happen to the buyer after a year. We have to be honest, with a 25% rate, very few people can buy a home in the current market. If someone can do that, the person will probably not watch these videos because they have a personal financial advisor.

[@Jay__B-p9c]

If you want to buy a house, you need to work either harder or smarter. Cash on the side and everything will help. Investing in America and not blaming the billionaires every time is a wise decision. I say 5, 10, $20 $50 every paycheck helps. Warren Buffett said you only lose when you sell below your average cost. Apple or Walmart won't go out of business anytime soon

[@jessicamccreary8488]

The rules/math make sense, it's the location that makes it difficult.. if you could just abracadabra yourself to a new location, making your same pay, easy peasy. No one wants to address the point that, if you find yourself in a location that outgrows your income, you're either SOL or need to find the means to relocate and find a job that pays the same, and that's the issue.

[@destanie9309]

when getting a loan do we just apply for a home we want or speak to a lender to see how much we are approved for?

[@nopemeow3655]

Can mobile homes be purchased with an fha loan? (not new mobile home, and a mobile home that is on a foundation on land, no longer mobile)

[@riceball777]

$100 in property tax? Here in California most people,I know myself include with very basic starter home pay $1000+ per month in just property tax. This is for a basic 70+ years old 1000-1500sq feet home.

[@TheSonyExperience]

@@riceball777 you have to follow the example. He was talking about on a 100,000 home

[@JebSmith]

For a 100K house, that's about what you would pay assuming the national average of 1.1%. If your property taxes are $1K/month then you must own at least an $800K home.

[@riceball777]

@@JebSmith basic starter home are over 800k in California. More like 900k-1million for a basic starter 1000 square feet house. And proper tax here is about 1.2-1.4% depending on city.

[@wagyu_killer]

mobile home land rent cost 1000 to 2300 in southbay and now the mobile home price went up on top of the land lease cost . america is not great anymore

[@JebSmith]

It can definitely be tough out there. Keep your head up, you got this!

[@K.mit338]

A lot of this stuff does depend on people’s location, lifestyle, and budget. I personally think housing should be 15-20% of a person’s income because you need the wiggle room for increases in property taxes and insurance. For instance, my husband and I have a mortgage that’s ~12% of our monthly income (we’re a one income household). Our mortgage being well below the recommended percentage for housing costs has helped us make more payments to pay off our home in 3 years, and we haven’t had to stress about increases in taxes or insurance premiums. Dave Ramsey’s advice has been helpful as far as knowing that we need small steps to succeed, but my husband and I decided to tweak the steps in a way that made sense for our family.

[@pauljackson171]

If indeed bootstrapping it tho with the ~1/2 your income(s) going to housing, please have it be for your main asset acquiring approach being leveraging of housing 🙏 (be it house hacking, Brrr method, flipping houses). 50% income(s) solely for a place you to reside in is much if paired with asset poor (let alone retirement not covered). Would basically be house poor (quality of life poor as majority pay goes to a nice house). Great if to on the high end of that ratio, up your income(s) while keeping at bay increased expenses, and in tandem upping how much you save or invest. That way aren’t house poor the full 15-30, whatever year mortgage is, but the first ~5 yrs of that (+\- by how much you grind or adapt).

[@bogdan78pop]

$100 in property taxes..??!! where ??? I pay $800 a month in Chicago for a 2 flat...!!

[@JebSmith]

Whats the price of that property? That makes a big difference. On a 100K home at the average nationwide property tax rate of 1.1% it would be around 100/month.

[@panda8bamboo161]

I make 80k as a single filer, if the median house hold is 65k, are people living by themselves or are they both working menial jobs?

[@JebSmith]

It's all relative.......some parts of the country, the wages are considerably less than others. Some are single filers and others have lower paying jobs.................it's a combo.

[@Dragon228833]

I just bought a 110k house in ohio. Its possible but not possible everywhere

[@Anthony-yr9ky]

How is a goal of 150k to 180k possible in Houston, Tx theres nothing available for that. Going up to the 250 only leaves you with houses built in the 80s & 90s with sinking foundations. Not even a correction would fix the disparage between this generation and the ones from past. At this rate youll be paying a mortgage off into your 80s thats if you don't die first.

[@RMS12.2]

I wish LA would allow more R2 neighborhoods.

[@bigrocko2731]

Can't even afford this with a VA loan with disability income and no PMI and no property taxes.

[@ohio-e1n]

Thank you Dave Ramsey for helping me get out of debt and lot let myself pay over what I can afford. Like this realtor is suggesting to do!!

[@greylindjames1786]

When to say a salary of 65k in this situation is it for a single person or two people?

[@JebSmith]

It's a total of 65K...........regardless of whether it's combined or individual.

[@Needglory23]

Are you going to make a video about how the LA fires are affecting real estate and apartment costs in the area?

[@JebSmith]

maybe after it plays out a bit, it's a bit early to know exactly what this looks like.

[@Needglory23]

@ Currently there is a mad dash for the remaining real estate and bidding wars. Also, apartments and Airbnb are raising their rent much more than 10% during an emergency which is illegal price gouging. Several KZbinrs have made videos about.

[@martinlutherkingjr.5582]

What about using assets as collateral for a mortgage?

[@JebSmith]

Traditional lenders won't allow you to do that, they will use them as compensating factors but you still have to meet the basic requirements.

[@joepic85]

In my opinion 20% down or dont buy a house

[@coryswanson2247]

Who is out here taking Dave Ramsay’s advice on real estate? His credit card policy maybe… but not real estate

[@Shinigamix07]

It feels so hopeless, idk how I’m gonna get ahead. Is this all by design?

[@JebSmith]

You have to follow your plan and not get caught up in the media headlines, etc........You get ahead by focusing on you and your goals and not worrying about the Joneses

[@terraGaliciaXXIV]

You move out of state

[@badart3204]

Not a design. It’s caused by larger macroeconomic factors such as the transition into a service economy which shifts jobs to cities thus concentrating more people in an area with less space. Then housing has been under built for 40 years due to zoning restrictions as people want their property values to go up and not down. It’s a decentralized issue which makes it harder to solve

[@KeyshawnDavis3]

Country is not the same. No one is supposed to buy houses anymore. It’s a rental country. - Local Realtor

[@rg7122]

You can’t even get a decent house in Pittsburgh anymore on that salary

[@JebSmith]

What price point are you trying to purchase?

[@rg7122]

@ I’m an agent haha. But 200k + is the extremely mid home anymore. 65k is gonna be cutting it close

[@thebatmanwholaughs219]

Typically you can afford a house that's 3 times your annual income.

[@terraGaliciaXXIV]

You gotta be a fool to remain in Cali if you’re only making 100k or less. Most people in Cali live in poverty

[@tommypham1101]

So basically we're f'ed, as housing continue to go up in the coming year.... a majority of hard working American making 65k are screw.... what about people making 30 -40k annual. Thank god I'm in the 75k bracket, eating pink salmon every day to save some money.

[@aldali724]

I feel attacked 😭😭

[@tommypham1101]

@@aldali724 jeb trying to tell people they are going to be poor as housing keep going up. Dont worry not I'm not going to sugar coat it and tell you how it is instead of giving people BS.

[@badart3204]

Yeah, it’s just an inevitable part of housing being under built for 40 years and populations concentrating into metropolitan areas for jobs.

[@chrispolocarino5173]

Jeb can you talk about getting a Mortgage Loan with Chapter 7 Bankcruptcy

[@n0rbakn0rbak38]

@@chrispolocarino5173 For conventional loans, the waiting period is typically 4 years from the discharge date of your Chapter 7 bankruptcy. For FHA loans, the waiting period is usually 2 years after the discharge. For VA loans, the waiting period is generally 2 years as well, but it can be shorter in some cases if you can demonstrate that the bankruptcy was due to circumstances beyond your control.

[@JebSmith]

I have..............search my channel.

[@temabiven7413]

I did in August. I am drowning in credit cards.

[@JebSmith]

you did what in August?

[@temabiven7413]

Yes 6.00% 3%down

[@temabiven7413]

Delaware 🤷

[@AsiaNTeddY05]

They should spend whatever they have saved to purchase a home.

[@JebSmith]

that's agressive

[@thejakelegion]

You're encouraging people making $4,333 a month to spend $2,500 a month on a mortgage? Are you INSANE?

[@temabiven7413]

Yep ! I pay 1988$

[@thejakelegion]

@temabiven7413 and what's your take home?

[@TheSonyExperience]

This is insane. He’s helping people make bad decisions

[@JebSmith]

Not encouraging but rather showing you how lenders calculate so you can see where you stand. You'd have to be a bit crazy to push those ratios without having additional income.

[@God_Himself15]

I’ll just live in a box

[@jaybartgis5148]

I have a great topic for a video Jeb. Why is it when I search for like... two million dollar houses they always get assessed ridiculously low at like 500k and dont pay their fair share in property taxes?

[@n0rbakn0rbak38]

The American dream 😂

[@FeelingPeculiar]

Where's that? Most states are dealing with insanely high increases in property taxes, no matter the price of the house.

[@JebSmith]

Property taxes are not based off the assessments listed on tax records FYI. Property taxes are typically based off purchase prices here in California and comparable values in other areas. Also assessments typically only take the land value into account and they’re always assessed lower than what they would sell for in my experience.

[@n0rbakn0rbak38]

@@JebSmith Depends on the state. Texas for example, the property value and assesed value are the same and you will pay anywhere from 2.5 % to 4% of the market value of the property.

[@whitesamurai]

@@JebSmith using California is hardly a good example: due to Proposition 13 it is very much the exception.

[@ohio-e1n]

no... 15 year does not "almost double" your mortgage. Nevermind, im out, you've wasted enough of my time