Your home affordability depends on your other debts as well as your down payment and income. Depending on the program and lender, your total debts including your new mortgage, property taxes and homeowners insurance should not exceed 43-to-50 percent of the gross income.
So with $45k a year ($3,750 a month) in income, you're looking at $1,350 to $1,875 a month for everything. If you have other debts besides the new mortgage, those have to be subtracted. So if you have a $200 car payment and $100 in credit card accounts, that leaves you $1,050 to $1,575 a month for your housing. If you find a place for $200,000, that's $6,000 for a three percent down payment, and leaves $4,000 for closing costs. Your payment at 4.0 percent would be $926, but you'd also have mortgage insurance of about $50 to $120, depending on your credit score. Then there's your taxes and insurance. You've got about $300 for them. That's a conservative scenario. The more aggressive one allows a $300,000 purchase with $9,000 down.