Can I afford a $170,000 house?

A question by alyssa :  I currently live in Southern California and would like to move to Tennessee in a few years. If I save $10,000 as a down payment for the house and maintain good credit, is it possibly to buy a house for the price of $170,000? (Did not include other savings for other important life things)?


Provide a response using the comment section. After review we will update the answers.

Your down payment amount should be almost twice that if you want to secure a decent mortgage deal–but if you are getting funds through the VA or the FHA, you might be able to get away with that lower amount. 

Can you afford it? Well, only you know that. Search online for a mortgage calculator and see what your basic monthly payment would be at the numbers you quoted. If it’s affordable, then you know the answer. Don’t forget to add in amounts for utilities, taxes, insurance and if you go with a federal mortgage program, PMI–it will be required. 

What doesn’t seem to be taken into consideration when I watch the lists is this: Yes, cost of living is low, taxes are low, housing is low, but when I see videos that focus on the lower cost of living, the results are almost always the same: No opportunities unless you’re a professional (and even then, that’s undercut by pay cuts or online work). More and more it feels like there needs to be a renaissance in America, but I don’t know how or what or where to begin or even how to stop it from being undercut or dying in the legislative branch. For myself? Full-time RV was the answer. I’d love to see a video on which states are the most rv friendly.


“lol no You need a deposit of at least 10% of the property value; you’re falling well short.”


“Since you never stated how much you earn, your debt ratio and other liabilities the question is impossible to answer.”


“Can you buy a house for $170K in Tennessee? Yes, Will a bank give you a mortgage with only $10K down payment? Doubtful, but maybe. You’d need income around 55K a year or more to afford a 170K house, and money for closing costs.”


“You can borrow about 3x what you make So if you make about $50K, you need a 34,000 dollar down payment to avoid PMI.”


” What is your income? Also, wages tend to be lower outside of California; especially in the “South”.”


By Alexandre Laurent

Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

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