How Much House Can I Afford on a $110K Salary in Utah?

If you're earning around $110,000 a year and wondering what that actually translates to in terms of home buying power, you're not alone. It's one of the most common questions we get, and the honest answer is that it depends a lot on your personal situation. Let's break down what we typically tell clients in this exact spot.

What Can You Realistically Afford?

There are a ton of loan programs out there, and some don't even require a down payment. Everything really depends on the client and where they are in life. For example, if someone had a $110,000 salary but was about to graduate with an MD, we wouldn't necessarily recommend leaning that hard into that salary today, because their financial picture is about to change.

As for down payment options, FHA and VA loans typically run around 3.5% down, while conventional loans run closer to 20% down. There are also 0% down programs available depending on your situation.

Now, to run some real numbers. If your salary is $110,000 and you don't expect it to increase soon, you'd divide that by 12, which comes out to $9,167 a month. As a general rule, you don't want to spend more than 28% of that on housing, which puts your maximum monthly payment around $2,567. That's assuming your total combined debt, including housing, car loans, student loans, and credit cards, doesn't exceed 36% of your income, or about $3,300 a month total.

Depending on today's interest rate, your down payment, and any other debts you're carrying, that generally translates to a home price somewhere between $343,400 and $450,000.

That said, these numbers are just a starting point. We always recommend using a mortgage calculator to get a general idea, and then connecting with a loan officer who can run your actual numbers. We work with a lot of great loan officers and are always happy to send a referral if you have questions.

What Buyers at This Income Level Often Overlook

When our buyers work with a preferred lender, they start out with all the information they need upfront, so they're rarely surprised by things like property taxes, HOA fees, PMI, insurance, or closing costs.

One thing we always recommend, though, is planning to save about 1% of your home's purchase price every year to cover repairs and maintenance. Homes require consistent upkeep, and deferred maintenance has a way of costing a lot more down the road if it's ignored.

Utah-Specific Programs Worth Knowing About

There are programs that exist through various lenders that can help with affordability, so it's worth asking your loan officer what's currently available. Programs and incentives shift over time, which is another reason talking to a trusted lender early on matters so much.

If $110K Is Below the Market Average in South Jordan

It's worth being upfront that a $110,000 single income can fall below the average home price in Salt Lake County. If that's the situation you're in, we typically recommend one of two paths: either save a larger down payment to reduce the overall cost of the home, or consider sharing the home with someone else to ease the burden of the monthly payment.

The Biggest Mistake We See at This Income Level

This income bracket is really the sweet spot for first-time home buyers, and the biggest mistake we see is people waiting around for the "perfect" home. Your first home is a starter home. Its job is to get you into the market and start building equity, not to check every box on your wish list.

We also see people get in over their skis, taking on a payment they really can't comfortably afford, instead of looking for something modestly priced that helps them grow toward the home that eventually does check all those boxes.

Getting Ready to Buy

We work with a handful of qualified lenders we trust, ones who have a strong track record of getting our clients to the closing table. Our biggest piece of advice is to talk to a lender early. They'll be able to walk you through the best steps for your specific situation to get you ready to buy.

One thing that surprises people: we've actually seen buyers pay off debt thinking it would help, only to have it hurt their ability to purchase a property. That's exactly why talking to a lender first, before making any big financial moves, is so important.

The Bottom Line

A $110,000 salary can absolutely get you into a home in Utah, it just takes understanding your real numbers, knowing what to expect, and having the right people in your corner from the start. If you're not sure where you stand, reach out. We're happy to walk through it with you and connect you with a lender who can get specific.