How Much Income Do You Need for a Mortgage in Wisconsin?
If you're thinking about buying a home in Wisconsin, one of the first questions you're probably asking is:
"How much income do I actually need to qualify for a mortgage?"
The honest answer: it depends, but the rules are a lot clearer (and more flexible) than most people think - especially if you're working with the right lender.
Let's break it down in a simple, real-world way.
Quick Answer
Most Wisconsin homebuyers can qualify for a mortgage when their total monthly housing payment fits within 43% - 50% of their gross monthly income, depending on the loan program.
That income can come from:
- Salary or hourly pay
- Overtime or bonuses
- Self-employment income
- Rental income
- Pension or retirement income
And in many cases, you may qualify with less income than you expect.
👉 Want an exact number for your situation?
Call or text Adam Zeman (NMLS #870441) at 414-975-2654, or schedule a quick call here:
https://calendly.com/adam-zeman/30min
You can also get instant guidance anytime using my 24/7 Mortgage & Real Estate Assistant:
👉 https://chatgpt.com/g/g-685422dd22bc8191a39cbdf2be98ec08-wisconsin-real-estate-mortgage-expert
How Lenders Calculate "Required Income"
Lenders don't look at income by itself - they look at debt-to-income ratio (DTI).
What is DTI?
DTI compares:
- Your monthly debts
- To your gross monthly income (before taxes)
Example:
- Gross monthly income: $6,000
- Total monthly debts: $2,700
- DTI = 45%
Most mortgage programs allow DTIs between 43% and 50%, depending on the loan type and overall strength of the application.
For a detailed explanation of how DTI works and why it matters, the Consumer Financial Protection Bureau provides a clear breakdown here:
https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/
Income Requirements by Loan Type in Wisconsin
Conventional Loans
- Typical max DTI: 45%
- Some approvals allow up to 50%
- Best for strong credit and stable income
Many Wisconsin buyers are surprised to learn that conventional loans can sometimes require less income than FHA, depending on mortgage insurance costs and structure.
For a full breakdown of credit requirements, down payments, and why this option works well for many buyers, read my full guide here:
https://adamzmortgageteam.com/conventional-loans-wisconsin-2025-a-smart-choice-for-homebuyers/
FHA Loans
- Typical max DTI: 55% – up to 57% with AUS approval
- Can go higher with strong credit or compensating factors
- More forgiving for first-time buyers
FHA loans are often a great fit if:
- You have a lower credit score
- You're early in your career
- You're carrying student loans
🇺🇸 VA Loans
- No official maximum DTI
- Focuses on residual income
- Often allows higher approval amounts
VA loans are unique because they emphasize how much money you have left over each month after expenses, rather than enforcing a strict DTI cap. The U.S. Department of Veterans Affairs outlines this approach directly here:
https://www.va.gov/housing-assistance/home-loans/loan-process/
Many Wisconsin veterans qualify for more home than they expect using VA financing.
DSCR Loans (Investment Properties)
- Personal income often not required
- Approval based on rental income vs mortgage payment
- Ideal for real estate investors
If the property's rent covers the payment, your W-2 income may not matter at all.
Real Wisconsin Example
Let's say you're buying a $325,000 home in Wisconsin:
- Estimated payment (principal, interest, taxes, insurance): ~$2,400/month
- Other monthly debts: $500
- Total monthly debts: $2,900
At a 45% DTI, you'd need roughly:
$6,450/month in gross income
(about $77,000 per year)
Depending on loan type, credit profile, and structure, that number can move up or down significantly.
Income That Can Be Used (Most People Miss This)
You may be able to count:
- Overtime (with history)
- Bonus income (with history)
- Commission income (with history)
- Part-time income (with history)
- Rental income
- Pension or Social Security
- Self-employment income
- Non-taxable income (grossed up)
This is where working with an experienced Wisconsin mortgage professional makes a major difference.
Why Pre-Approval Matters More Than Guessing
Online calculators give rough estimates - but pre-approval gives certainty.
A true pre-approval:
- Verifies your income
- Reviews your credit
- Calculates accurate payments
- Strengthens your offer with sellers
I walk through the full pre-approval process step-by-step in this article, including timelines and documentation expectations for Wisconsin buyers:
https://adamzmortgageteam.com/mortgage-pre-approval-in-wisconsin-from-call-to-pre-approval-letter-in-3-easy-steps/
In competitive Wisconsin markets, this can be the difference between winning and losing a home.
Frequently Asked Questions
Can I qualify with student loans?
Yes. Student loans are common, and there are multiple ways they can be calculated depending on loan type.
What if I'm self-employed?
Self-employed borrowers qualify every day. Structure and documentation matter more than the raw income number.
Do I need perfect credit?
No. Many buyers qualify with average credit, especially with FHA or VA loans.
Let's Get Your Real Number
Instead of guessing, let's calculate your actual buying power.
📞 Call or Text: 414-975-2654
🌐 Website: https://www.mkemortgage.com
📅 Schedule a Call: https://calendly.com/adam-zeman/30min
🤖 24/7 Mortgage Help:
https://chatgpt.com/g/g-685422dd22bc8191a39cbdf2be98ec08-wisconsin-real-estate-mortgage-expert
Adam Zeman
Mortgage Loan Originator | Union Home Mortgage
NMLS #870441
Serving Milwaukee, Waukesha, and all of Wisconsin