Money Guy figures apply to gross income. Ramsey's Baby Steps page says 'household income' without qualifying gross vs. take-home. Ramit's own framing is against take-home pay specifically.
Rules simplified from each advisor's own public guidance, for comparison only — not personalized financial advice.
All three support home ownership — eventually. The fight is over income base (gross vs. take-home), mortgage term (30-year or 15-year only), and which prerequisites have to be satisfied before you're allowed to buy.
The Money Guy Show
Brian Preston & Bo Hansen
3
% FIRST HOME
/
5–7
YR HOLD
/
25
% GROSS PITI
3/5/25 Rule
—3% down on first home (20% on subsequent homes)
—Plan to hold at least 5–7 years
—Total PITI ≤ 25% of gross household income
—30-year is OK but pay it off before retirement
“Buying a home isn't automatically the right play. Run the 3/5/25 guardrails first — if they fail, keep renting and investing.”
Money Guy and Ramit figures use gross annual income. Ramsey's 25% cap applies to take-home pay — enter your own post-tax monthly take-home to apply Ramsey's rule honestly.
Rules simplified from each advisor's own public guidance, for comparison only — not personalized financial advice.
No advisor says rent forever. They each define a different set of financial prerequisites that must be true before buying is worth it — and until those conditions are met, renting is the correct answer.
The Money Guy Show
Brian Preston & Bo Hansen
3/5/25
FAIL = RENT
Rent Until You Clear the Guardrails
—Can't put 3% down (20% on a subsequent home)? Rent.
—Can't commit to a 5–7 year hold? Rent.
—Would PITI exceed 25% of gross income? Rent.
—Missing any guardrail means renting is the disciplined answer.
“Renting isn't losing — it's the holding pattern while you build the financial foundation to buy correctly.”
—Complete Baby Step 2: debt-free except the mortgage
—Complete Baby Step 3: 3–6 month emergency fund fully funded
—Until both prerequisites are met: rent — the Baby Steps page treats an earlier purchase as premature and does not spell out mortgage-specific down-payment or income-percentage guardrails; those live on the dedicated house-buying source
“Buying a home before you're debt-free trades one financial burden for two. Get the prerequisites right — then buy.”
—Renting is not a consolation prize — it may be the smarter choice
—Calculate total ownership cost: mortgage + taxes + insurance + HOA + maintenance + opportunity cost of the down payment
—Compare honestly to renting in your actual market
—Don't buy because 'everyone does'
“I love renting. The question is whether buying serves your rich life — and you won't know until you run the actual numbers including every phantom cost.”