Fascinated with shopping for a $600,000 dwelling? Earlier than you begin shopping listings, you’ll need to know in case your revenue can assist a mortgage that measurement. The revenue wanted for a $600k mortgage is determined by a number of key elements like your down cost, 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 will help you set sensible expectations and make smarter monetary choices.
The brief reply
Most homebuyers might want to earn between $140,000 to $180,000 per 12 months to afford a $600,000 dwelling.
In fact, that quantity can change based mostly in your credit score rating, current debt, and month-to-month bills.
This estimate assumes a 30-year fastened mortgage, common rates of interest, and a average down cost.
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 below 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 monthly or round $140K to $180K per 12 months, relying in your monetary profile. The important thing elements that have an effect on this quantity embrace:
Mortgage rate of interest
Down cost measurement
Property taxes and insurance coverage prices
Your current month-to-month money owed
Your credit score rating
Instance situation
Let’s assume the next:
Dwelling value: $600,000
Down cost: 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 cost (principal + curiosity): ~$3,113
Complete estimated month-to-month housing value: $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 beneficial affordability vary.
Understand that in the event 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 larger, you’ll want a good larger revenue to qualify.Â
Nevertheless, there are exceptions. VA loans, out there to eligible veterans and active-duty service members, require no down cost and no PMI. Different choices like FHA loans or sure first-time homebuyer applications permit down funds as little as 3%, although they could 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 cost
The extra you set down, the much less you’ll have to borrow and the decrease your month-to-month funds will probably be. A 20% down cost 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 adjustments can have a huge impact. For example, a $600,000 dwelling at:
A 6.5% fee might value ~$3,037/month (P&I)
A 7.0% fee might bump that to ~$3,195/month
That additional $158/month might push your qualifying revenue up by a number of thousand {dollars} per 12 months. As of June 2025, the common 30-year fastened fee is round 7.4%, which is larger than charges seen in prior years.Â
4. Credit score rating
A better credit score rating will help you safe a decrease rate of interest, which reduces your month-to-month cost and the revenue wanted to qualify. Most lenders provide one of the best phrases to patrons with scores above 740.
Learn>> How To Purchase A Home With Unhealthy Credit score
5. Location and property taxes
Property taxes fluctuate extensively by area, and that adjustments 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 12 months. 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 assist, 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 eventualities
Right here’s how revenue and funds would possibly fluctuate for various purchaser sorts:
Purchaser ProfileDown PaymentCredit ScoreRateDebtMonthly Cost (PITI)Estimated Earnings
Conservative Buyer20% ($120,000)Wonderful (760+)6.50%$300~$3,899~$167,100
Typical Buyer10% ($60,000)Good (700–740)6.75%$600~$4,705~$201,600
Low Down Cost Buyer5% ($30,000)Honest (660–680)7.00%$900~$5,013 (incl. PMI)~$214,800
Professional tip: Speaking to a mortgage lender early on will help you estimate your affordability based mostly in your monetary state of affairs—and should even unlock higher charges or down cost 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:
Increase 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 cost: This could decrease your month-to-month value 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 will help you qualify for extra.
Discover homebuyer help applications: Many states provide down cost or rate of interest help for first-time dwelling patrons.
Get pre-approved early: Pre-approval provides you a transparent finances and reveals sellers you’re a critical purchaser.
Work with an actual property agent: An agent will help you keep on finances and negotiate higher offers.
Deal with financial savings: Build up your financial savings for a bigger down cost can decrease your month-to-month prices and make it simpler to qualify for a $600k mortgage.
Learn>> What You Have to Purchase a Home in 2025
FAQs: Your $600k mortgage questions answered
1. Can I afford a $600k mortgage on $150k revenue?
Presumably; particularly you probably have low debt and a robust credit score rating. However a bigger down cost will assist.
2. What if my DTI is 43%?
You should still qualify for a mortgage, however you could possibly face stricter mortgage phrases or larger rates of interest. When you’re close to the 43% threshold, take into account lowering 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 12 months, assuming you’ve gotten minimal debt.
4. Is location an enormous consider affordability?
Sure. Property taxes and insurance coverage prices fluctuate considerably by state and county — and might elevate or decrease your required revenue.
5. What instruments will help 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 cost.
6. The place can I discover $600,000 properties?
Use Redfin’s dwelling search software to discover listings in your goal space. You possibly can set value filters, view tax estimates, and get alerts for brand new listings or value drops.
