Interested by shopping for a $600,000 dwelling? Earlier than you begin looking listings, you’ll need to know in case your revenue can help a mortgage that dimension. The revenue wanted for a $600k mortgage is determined by a number of key elements like your down fee, credit score rating, debt, and rate of interest.
Whether or not you’re eyeing a suburban dwelling in Denver, CO or a townhome in San Diego, CA, understanding how lenders consider affordability can assist you set lifelike expectations and make smarter monetary selections.
The brief reply
- Most homebuyers might want to earn between $140,000 to $180,000 per yr to afford a $600,000 dwelling.
- After all, that quantity can change based mostly in your credit score rating, present debt, and month-to-month bills.
- This estimate assumes a 30-year mounted mortgage, common rates of interest, and a average down fee.
What’s the revenue wanted for a $600k home?
Lenders usually recommend that your complete month-to-month housing bills – mortgage, taxes, insurance coverage, and any HOA charges – keep underneath 28% to 31% of your gross month-to-month revenue. To remain inside these limits, you’ll seemingly have to make between $11,700 and $15,000 per thirty days or round $140K to $180K per yr, relying in your monetary profile. The important thing elements that have an effect on this quantity embrace:
- Mortgage rate of interest
- Down fee dimension
- Property taxes and insurance coverage prices
- Your present month-to-month money owed
- Your credit score rating
Instance state of affairs
Let’s assume the next:
- Dwelling value: $600,000
- Down fee: 20% ($120,000)
- Mortgage: $480,000 with a 30-year time period at 6.75% curiosity
- Month-to-month prices: ~$3,113 (contains mortgage, taxes, insurance coverage)
Estimated month-to-month mortgage fee (principal + curiosity): ~$3,113
Whole estimated month-to-month housing price: $3,113 + $595 + $270 = $3,978
Based mostly on this instance, your gross month-to-month revenue must be round $14,200, or about $170,500 yearly, to remain inside the really useful affordability vary.
Remember that should you put down lower than 20%, you’ll seemingly must pay personal mortgage insurance coverage (PMI), which can improve your month-to-month prices—and if property taxes are increased, you’ll want a good increased revenue to qualify.
Nevertheless, there are exceptions. VA loans, out there to eligible veterans and active-duty service members, require no down fee and no PMI. Different choices like FHA loans or sure first-time homebuyer applications enable down funds as little as 3%, although they might nonetheless embrace mortgage insurance coverage and stricter debt limits.
Key elements that have an effect on how a lot home you’ll be able to afford
The revenue wanted for a $600k mortgage is determined by extra than simply your wage. A number of private and monetary variables can affect how a lot home you’ll be able to afford.
1. Down fee
The extra you place down, the much less you’ll have to borrow and the decrease your month-to-month funds will likely be. A 20% down fee additionally avoids personal mortgage insurance coverage (PMI).
2. Debt-to-income ratio (DTI)
Your debt-to-income ratio (DTI) compares your complete month-to-month debt (like automotive funds, bank cards, or pupil loans) to your revenue. Lenders usually choose a DTI beneath 36%, with housing prices not more than 28% of your gross revenue.
3. Rates of interest
Even small fee modifications can have a huge impact. As an illustration, a $600,000 dwelling at:
- A 6.5% fee might price ~$3,037/month (P&I)
- A 7.0% fee might bump that to ~$3,195/month
That further $158/month might push your qualifying revenue up by a number of thousand {dollars} per yr. As of June 2025, the common 30-year mounted fee is round 7.4%, which is increased than charges seen in prior years.
4. Credit score rating
A better credit score rating can assist you safe a decrease rate of interest, which reduces your month-to-month fee and the revenue wanted to qualify. Most lenders supply the most effective phrases to consumers with scores above 740.
Learn>> How To Purchase A Home With Dangerous Credit score
5. Location and property taxes
Property taxes range extensively by area, and that modifications how a lot revenue you’ll want.
For instance, in Westchester County, NY or Cook dinner County, IL, property taxes on a $600,000 dwelling might exceed $9,000 per yr. In locations like Maricopa County, AZ or Bexar County, TX, taxes could also be nearer to $3,500 to $4,500 yearly.
6. Different monetary obligations
Youngster help, automotive loans, pupil loans, potential HOA charges, and private loans are all a part of your DTI. The extra you owe elsewhere, the much less you’ll be able to afford in month-to-month mortgage funds even when your revenue is excessive.
What it takes to afford a $600,000 dwelling: side-by-side situations
Right here’s how revenue and funds would possibly range for various purchaser sorts:
| Purchaser Profile | Down Fee | Credit score Rating | Fee | Debt | Month-to-month Fee (PITI) | Estimated Revenue |
|---|---|---|---|---|---|---|
| Conservative Purchaser | 20% ($120,000) | Glorious (760+) | 6.50% | $300 | ~$3,899 | ~$167,100 |
| Typical Purchaser | 10% ($60,000) | Good (700–740) | 6.75% | $600 | ~$4,705 | ~$201,600 |
| Low Down Fee Purchaser | 5% ($30,000) | Truthful (660–680) | 7.00% | $900 | ~$5,013 (incl. PMI) | ~$214,800 |
Professional tip: Speaking to a mortgage lender early on can assist you estimate your affordability based mostly in your monetary scenario—and will even unlock higher charges or down fee help applications.
Ideas that will help you afford a $600k mortgage
Listed here are some sensible steps to enhance your shopping for energy and hold month-to-month funds manageable:
- Enhance your credit score rating: Pay payments on time, decrease balances, and restrict new credit score functions.
- Cut back your debt: Paying down loans improves your DTI and borrowing energy.
- Save for a bigger down fee: This may decrease your month-to-month price and take away PMI.
- Store round for lenders: Evaluate rates of interest, charges, and pre-approval quantities.
- Use a co-borrower: Including a accomplice’s revenue can assist you qualify for extra.
- Discover homebuyer help applications: Many states supply down fee or rate of interest help for first-time dwelling consumers.
- Get pre-approved early: Pre-approval provides you a transparent finances and reveals sellers you’re a severe purchaser.
- Work with a actual property agent: An agent can assist you keep on finances and negotiate higher offers.
- Concentrate on financial savings: Build up your financial savings for a bigger down fee can decrease your month-to-month prices and make it simpler to qualify for a $600k mortgage.
Learn>> What You Must Purchase a Home in 2025
FAQs: Your $600k mortgage questions answered
1. Can I afford a $600k mortgage on $150k revenue?
Presumably; particularly when you’ve got low debt and a powerful credit score rating. However a bigger down fee will assist.
2. What if my DTI is 43%?
You should still qualify for a mortgage, however you possibly can face stricter mortgage phrases or increased rates of interest. When you’re close to the 43% threshold, take into account decreasing or consolidating debt earlier than making use of for a house mortgage.
3. What revenue do I want for a $600k home with 5% down?
You’ll seemingly have to earn round $180,000-$190,000 per yr, assuming you’ve got minimal debt.
4. Is location a giant think about affordability?
Sure. Property taxes and insurance coverage prices range considerably by state and county — and might increase or decrease your required revenue.
5. What instruments can assist me calculate affordability?
On-line mortgage calculators can estimate what you’ll be able to afford based mostly in your revenue, money owed, fee, and down fee.
6. The place can I discover $600,000 properties?
Use Redfin’s dwelling search software to discover listings in your goal space. You may set value filters, view tax estimates, and get alerts for brand new listings or value drops.
