Generally speaking, most people can afford a house that is worth about three times their total (gross) annual income. If you make an annual income of $50,000, you can probably afford a house around $150,000. Keep in mind this is estimated assuming that you made a 20% down payment and you have long term debts such as a car note, credit card bills, school loans, etc. On the otherhand, if you have low or no debt, you can probably afford a house worth four or five times your annual income. Also interest rates play a role as well. The lower the rates, the more you can afford. Right now in 2016 interest rates are historically low. If you are not sure as to how much you can afford, you should speak with a loan officer and get prequalified so you can have a good idea where your target saving should be.