How to Buy a $700,000 House in LA on $150K Without Losing Your Mind (or Your Wallet)

Let’s talk about the pipe dream of owning a $700,000 home in Los Angeles. Yeah, we know—it sounds like a joke. Housing prices here are like a bad Tinder date: disappointing and way out of your league. But guess what? You and your $150K combined income can make it happen. It’s not easy, and you might have to say goodbye to that $10 oat milk latte habit, but hey, dreams cost money. Here’s the game plan to make your homeowner fantasy come true, snark included.

Step 1: Accept Reality and Adjust Expectations

First things first: owning a home in LA is not about buying the Pinterest-worthy bungalow with a pool and a view of the Hollywood sign. You’re looking at a starter home, maybe a condo, possibly a duplex in a not-quite-trendy neighborhood. That’s fine—you’re buying your way into equity, not bragging rights. Think of this as a financial stepping stone, not an HGTV episode. Nobody’s impressed by your “fixer-upper” in Reseda, but your future bank account will be.

Step 2: Save Like Your Life Depends on It

If you don’t already have a down payment saved, it’s time to get serious. A 20% down payment on a $700,000 home is $140,000. Don’t have that? No problem—FHA loans let you go as low as 3.5% ($24,500), but you’ll be stuck with PMI (a.k.a. the joy-sucking Private Mortgage Insurance). Either way, start funneling every spare dollar into your savings.

How to Save:

Cut the Fat: Bye-bye daily Starbucks and impulse Amazon buys. Hello meal prepping and DIY projects.
Get a Side Hustle: Freelance, drive Uber, or sell the junk in your garage on Facebook Marketplace. Every dollar counts.
Automate Savings: Set up auto-transfers to a separate savings account so you don’t spend it on Coachella tickets. Saving for a house in LA is like training for a marathon—painful, slow, and probably involves crying in your car at some point.

Step 3: Lower Your Housing Standards (for Now)

Here’s the deal: $700,000 doesn’t go far in LA. That cute Craftsman in Silver Lake? Forget it. Instead, look at condos, townhomes, or even duplexes. You might need to explore less trendy neighborhoods like Inglewood, Reseda, or El Sereno. These areas are still within commuting distance and give you room to build equity.

Pro Tip: Buy a duplex or triplex and rent out the other units. This is called house hacking, and it’s basically cheating at life. Your first house isn’t supposed to be sexy. It’s supposed to be affordable. Stop dreaming of beachside bungalows and start Googling “How far is Palmdale from downtown LA?”

Step 4: Get Pre-Approved (a.k.a. Face the Mortgage Monster)

Before you start scrolling Zillow like it’s TikTok, get pre-approved for a mortgage. On a $150K combined income, most lenders will approve you for a loan of around $500K–$600K, depending on your debt-to-income ratio. Add your down payment, and you’re in $700K territory.

What You’ll Need:

Good Credit: Aim for a score of 700+ for better rates.
Low Debt-to-Income Ratio (DTI): Keep monthly debts (car loans, student loans, credit cards) under 40% of your income.
Proof of Income: Your W-2s and pay stubs are your golden ticket. The mortgage lender will dig into your finances like a nosy aunt at Thanksgiving. Smile, nod, and hope they don’t judge your Uber Eats history.

Step 5: Budget Like a Boss

So you’ve got your loan and your dream(ish) house picked out. Now comes the fun part: making sure you can actually afford it.

Here’s what you’re looking at:

Mortgage Payment (Principal + Interest): Around $4,000/month at 7% interest.
Property Taxes: ~$730/month (1.25% of purchase price).
Home Insurance: ~$150/month.
PMI (if <20% down): ~$300/month.

Total Monthly Cost: $5,200.Your combined take-home pay after taxes is about $10,000/month. That leaves $4,800 for everything else. Tight? Yes. Impossible? No. Welcome to adulthood, where you spend half your paycheck on a house you’ll spend the other half trying to fix.

Step 6: Be Ready for Sacrifices

Buying a $700K house on $150K means cutting corners everywhere else. Here’s how to make it work without hating your life:

Drive an Old Car: Forget new cars; reliability is your new flex.
Vacations? Keep Them Local: Road trips to Joshua Tree are the new Paris getaway.
Trim Entertainment Costs: Netflix and potlucks replace concerts and fine dining.
Live Minimalist: Declutter, simplify, and save on “stuff” you don’t need.

Key Snark: You’re not “cheap.” You’re “financially focused.” Repeat that until you believe it.

Step 7: Plan for the Future

Once you’re in your home, the real work begins. Start aggressively paying off your mortgage, building equity, and saving for repairs. Houses in LA don’t come with a money-back guarantee, so keep a rainy-day fund for when the water heater inevitably dies. Owning a house isn’t glamorous—it’s a money pit with a roof. But it’s your money pit, and that’s what matters.

Final Thoughts: Keep Your Eye on the Prize

Buying a $700,000 home in Los Angeles on $150K is no small feat, but it’s doable with discipline, focus, and a willingness to compromise. Will it be easy? Absolutely not. Will it be worth it? When you’re sipping coffee in your own kitchen, knowing every dollar of rent is going back into your pocket, you’ll know the answer.

So buckle up, get saving, and stop doomscrolling Zillow. Your future home is out there—you just have to out-hustle the competition to get it.

Monthly Costs for a $700,000 Home

Here’s what you’re looking at every month:

Mortgage (5% Down, 7% Interest): $4,423
Property Taxes: $729
Private Mortgage Insurance (PMI): $277
Home Insurance: $150
Utilities: $300

Total Housing Costs: $5,879/month

Other Living Costs

On top of the house, you’ll spend on:

Transportation (1 car): $850
Groceries: $800
Dining Out: $200
Entertainment: $150
Miscellaneous: $300

Total Non-Housing Costs: $2,300/month

The Big Picture

Take-Home Pay: ~$10,000/month
Total Expenses: $8,179/month
Leftover: $1,821/month

How to Make It Work

Stick to the Budget: Limit splurges on dining, subscriptions, and entertainment.
Save Extra: Use the $1,821 left over to:
- Build an emergency fund ($300/month).
- Save for retirement ($500/month).
- Pay down your mortgage faster ($200–$300/month).
House Hack: Buy a duplex or triplex and rent out other units for $2,000–$3,000/month to slash your costs.
Refinance Later: If interest rates drop, refinance to lower your payments.

Bottom Line

Buying a $700,000 home on $150,000 means cutting back on luxuries, saving aggressively, and possibly renting out part of your property. It’s not glamorous, but it’s worth it when you’re building equity and living the LA homeowner dream!

Legal Disclaimer

The content provided in this article is for informational and entertainment purposes only and should not be construed as financial advice. While efforts have been made to ensure the accuracy of the information, individual circumstances vary, and readers are encouraged to consult with a licensed financial advisor, accountant, or other qualified professional before making any financial decisions. The author and publisher disclaim any liability for actions taken based on the content of this article. Your financial future is your responsibility—plan wisely!