What is the formula to calculate the annual salary based on the amount borrowed for purchasing a house?

The formula to calculate the annual salary based on the amount borrowed for purchasing a house is derived from common financial guidelines. In many cases, lenders use a principle where a buyer's annual salary should be approximately 2.5 times the amount they intend to borrow. This guideline is rooted in the ability to ensure that borrowers can manage their mortgage payments without experiencing financial strain.

In this context, if you take the amount borrowed and divide it by 2.5, you effectively arrive at a figure that suggests the minimum annual income needed to comfortably procure that loan amount, considering typical debt-to-income ratios that lenders prefer. This means if someone borrows a significant sum, their income should support that borrowing responsibly, hence the division by 2.5 to find a sustainable annual salary.

The other options do not align with this commonly acknowledged formula for determining the annual salary requirements based on borrowed amounts, rendering them inappropriate for this calculation.