The Salary Required To Buy A Home (Money Guy vs. Ramsey)

For a $300,000 starter home, following Dave Ramsey's home buying rules requires a household income of $184,000—putting you in the top 19% of American earners. Following the Money Guy rules, that same house requires $113,000. The difference: $71,000 of additional income needed, or about 63% more. That gap is the central tension in this episode, and it comes down to three specific rule differences between two popular financial frameworks.

The Three Rule Differences That Drive the Gap

The Money Guy hosts (Brian Preston and, filling in for Bo Hanson, co-host Reeby) walk through three structural differences between their approach and Ramsey Solutions' approach to buying a first home.

Down payment. Ramsey now recommends 5–10% down (updated from 20% after the post-2022 housing run-up). Money Guy recommends 3–5%. Both frameworks agree that the old 20% rule is not necessary for a first home purchase. The hosts note that over 70% of their own advisors put down less than 5% on their first homes.

Income calculation. Ramsey uses 25% of net income for housing expenses. Money Guy uses 25% of gross income. Net is smaller because it subtracts 401(k) contributions, tax withholding, and benefits. Gross is larger and harder to manipulate. This single difference dramatically changes what income qualifies.