Roughly $490,000 to $600,000 at a rate near 6.5 percent depending on the down payment, and past $700,000 only by borrowing to the top of the debt-to-income limit: $150,000 a year is $12,500 a month gross, so the 28 percent housing ceiling is $3,500 and the 43 to 45 percent all-debt ceiling is $5,375 to $5,625.
At this income the salary stops being the binding constraint and the down payment takes over. The gap between 10 percent down and 20 percent down is worth about $90,000 of price here, which is more than a full point of rate is worth.
The arithmetic, worked at both down payments, with Las Vegas valley tax, insurance and HOA figures.
The ceilings
Gross monthly income at $150,000 a year is $12,500. Twenty-eight percent is $3,500, the comfortable ceiling on the whole housing payment. Forty-three to forty-five percent is $5,375 to $5,625 across every debt, which is what underwriting will actually approve.
The gap is $1,875 a month, and it is larger in dollars than the entire housing budget of a $60,000 earner. That is worth saying plainly, because at this income the temptation is to treat the approval as the budget. A $5,000 housing payment is approvable at $150,000 and leaves roughly nothing for retirement contributions, childcare or a year of reduced income.
What $3,500 a month buys
A 30-year loan at a rate near 6.5 percent costs about $6.32 a month per $1,000 borrowed. Two worked examples at the same $3,500 ceiling.
- With 10 percent down, a $490,000 home. The loan is $441,000, so principal and interest run about $2,787. Property tax at 0.6 percent of value is $245 a month. Insurance at roughly $2,000 a year is $167. Mortgage insurance at 0.5 percent of the loan is $184. A $100 HOA finishes it: $3,483.
- With 20 percent down, a $580,000 home. The loan is $464,000, principal and interest about $2,932, tax $290, insurance $190, no mortgage insurance, the same $100 HOA: $3,512.
Why the down payment moves it so far
Two effects stack. The larger down payment borrows less, and it removes mortgage insurance entirely, which on the 10 percent example was $184 a month doing nothing for the balance. Together they are worth about $90,000 of price at the same monthly payment.
The cash difference is real: 20 percent of $580,000 is $116,000 plus roughly $17,000 in closing costs, against $49,000 plus about $15,000 at 10 percent on $490,000. Whether the extra $70,000 of cash is better spent on price or kept invested is a decision, not an arithmetic result, and it depends on what the money would otherwise earn and on how long the house will be held.
There is a middle route. Mortgage insurance on a conventional loan is cancellable, by request at 80 percent loan-to-value and automatically at 78 percent, so putting 10 percent down and asking for cancellation later is not the same trap as an FHA premium that does not come off.
Where jumbo pricing starts
Above a certain loan size a mortgage is no longer conforming and is priced as a jumbo, commonly with a larger down payment, tighter reserve requirements and a different rate. The conforming limit is set each year and varies by county, so verify the current Clark County figure before assuming a loan clears it.
At $150,000 of income with 20 percent down, the loan on a $600,000 home is $480,000, well inside the limit everywhere. The threshold only becomes a planning question for buyers at this income who put very little down on a home near $800,000, and the debt-to-income limit usually stops that first.
General information, not lending advice. Ask a lender to price both a 10 percent and a 20 percent scenario on the same loan estimate; the comparison is free and it is the only version with your credit in it.
Questions people ask
Can I afford a $700,000 house on a 150k salary?
With 20 percent down and no other debt, yes on paper: the payment lands near $4,200, which is inside the 43 percent debt-to-income limit. It is $700 a month above the 28 percent comfort line, so it assumes the income is stable and the cash reserves are real.
How much house can two people making 75k each afford?
The same as one person making $150,000, because lenders total both incomes and both sets of debts. The difference is risk rather than approval: two incomes covering one payment is safer, and two car loans instead of one is not.
Should I put 20 percent down at this income?
It removes mortgage insurance and buys about $90,000 more house at the same payment, but it also commits roughly $70,000 more cash. Conventional mortgage insurance is cancellable at 80 percent loan-to-value, so a smaller down payment is a delay rather than a permanent cost.