Buying a $600k–$800k home typically requires a six-figure income, with exact needs depending on your rate, down payment, and existing debts. Bigger down payments and lower rates reduce the income required.
Are you just getting started on your homebuying journey? If so, you may wonder if you earn enough to qualify for a mortgage. While each borrower's situation is different, we've put together some sample scenarios to give you a good idea of how much income you need to buy a $600,000, $700,000, and $800,000 house with 5% down.
How Much Income Do You Need to Buy a $600k House?
In our example, which we’ll fully detail at the end, someone purchasing a $600,000 property would incur a monthly mortgage payment of $4,870. To qualify for this payment, you would need a minimum monthly income of $13,528 — around $162,336 per year.
How Other Debts Affect the Income Needed for a $600k House
Lenders would let you have total monthly debts (home payment, plus other recurring debt payments) of up to $6,088 with a monthly gross income of $13,528. We base these figures on a 45% back-end, debt-to-income (DTI) ratio. This means 45% of your gross income goes toward housing and debt payments.
Deducting the new monthly mortgage payment, this figure would allow for up to $1,198 in other monthly debt payments.
If you have auto loans, credit card minimums, or other installment loans exceeding $1,198, you'll need a higher income to qualify for your mortgage.
Mortgage Payment | Other Existing Debts | Total Monthly Debt | Income Needed |
$4,870 | $1,000 | $5,870 | $13,528 |
$4,870 | $1,250 | $6,120 | $13,600 |
$4,870 | $1,500 | $6,370 | $14,156 |
$4,870 | $1,750 | $6,620 | $14,711 |
$4,870 | $2,000 | $6,870 | $15,267 |
$4,870 | $2,250 | $7,120 | $15,822 |
$4,870 | $2,500 | $7,370 | $16,378 |
$4,870 | $2,750 | $7,620 | $16,933 |
Income Needed to Buy a $600k Home by Interest Rate
Our example uses an interest rate of 6.992%. If the rate you receive is much different, your payments and income requirements could change significantly.
Here is a chart of the monthly payments and income needed for a $600k house based on a range of interest rates.
Interest Rate | Monthly Payment | Income Needed |
5.00% | $4,140 | $11,500 |
5.25% | $4,228 | $11,744 |
5.50% | $4,317 | $11,992 |
5.75% | $4,407 | $12,242 |
6.00% | $4,498 | $12,494 |
6.25% | $4,590 | $12,750 |
6.50% | $4,683 | $13,008 |
6.75% | $4,778 | $13,272 |
7.00% | $4,873 | $13,536 |
7.25% | $4,969 | $13,803 |
7.50% | $5,066 | $14,072 |
7.75% | $5,164 | $14,344 |
8.00% | $5,263 | $14,619 |
8.25% | $5,363 | $14,897 |
8.50% | $5,463 | $15,175 |
8.75% | $5,565 | $15,458 |
9.00% | $5,667 | $15,742 |
Buying a $600k House With a Larger Down Payment
We've assumed a 5% down payment for your purchase. However, a higher down payment amount will lower your mortgage payment — and the income you need to afford a $600k house. Putting 20% or more down will eliminate private mortgage insurance and reduce overall costs.
Down Payment (%) | 5% | 10% | 15% | 20% |
Down Payment ($) | $30,000 | $60,000 | $90,000 | $120,000 |
Amount Financed | $570,000 | $540,000 | $510,000 | $480,000 |
Monthly Payment | $4,870 | $4,616 | $4,371 | $4,091 |
Income Needed | $13,528 | $12,822 | $12,142 | $11,364 |
How Much Income Do You Need to Buy a $700k House?
If you're in the market for a $700,000 home, you can expect monthly payments of approximately $5,615. Based on our standard assumptions, this would require an income of at least $15,597 per month — $187,164 annually.
How Other Debts Affect the Income Needed for a $700k House
Based on the minimum required income of $15,597, you could have total monthly debts as high as $7,019. This equates to around $1,404 in other debt payments on top of your mortgage, including outstanding car loans and student loan debt.
Here’s an idea of how having a higher debt load could affect the income needed for a $700k house.
Mortgage Payment | Other Existing Debts | Total Monthly Debt | Income Needed |
$5,615 | $1,250 | $6,865 | $15,597 |
$5,615 | $1,500 | $7,115 | $15,811 |
$5,615 | $1,750 | $7,365 | $16,367 |
$5,615 | $2,000 | $7,615 | $16,922 |
$5,615 | $2,250 | $7,865 | $17,478 |
$5,615 | $2,500 | $8,115 | $18,033 |
$5,615 | $2,750 | $8,365 | $18,589 |
$5,615 | $3,000 | $8,615 | $19,144 |
Income Needed to Buy a $700k Home by Interest Rate
Your actual income needed to buy a $700k home can vary depending on the interest rate you qualify for. Our calculations are based on an assumed interest rate of 6.992%, but your specific rate offers may vary.
Here are the payments and income levels needed to buy a $700k home at various interest rates.
Interest Rate | Monthly Payment | Income Needed |
5.00% | $4,764 | $13,233 |
5.25% | $4,866 | $13,517 |
5.50% | $4,970 | $13,806 |
5.75% | $5,075 | $14,097 |
6.00% | $5,181 | $14,392 |
6.25% | $5,288 | $14,689 |
6.50% | $5,397 | $14,992 |
6.75% | $5,507 | $15,297 |
7.00% | $5,618 | $15,606 |
7.25% | $5,730 | $15,917 |
7.50% | $5,844 | $16,233 |
7.75% | $5,958 | $16,550 |
8.00% | $6,073 | $16,869 |
8.25% | $6,190 | $17,194 |
8.50% | $6,307 | $17,519 |
8.75% | $6,425 | $17,847 |
9.00% | $6,545 | $18,181 |
Buying a $700k House With a Larger Down Payment
Here's what making down payments ranging from 5% to 20% might impact the income needed to buy a $700k house.
Down Payment (%) | 5% | 10% | 15% | 20% |
Down Payment ($) | $35,000 | $70,000 | $105,000 | $140,000 |
Amount Financed | $665,000 | $630,000 | $595,000 | $560,000 |
Monthly Payment | $5,615 | $5,318 | $5,033 | $4,706 |
Income Needed | $15,597 | $14,772 | $13,981 | $13,072 |
How Much Income Do You Need to Buy an $800k House?
According to our methodology, the monthly payment on an $800k home with 5% down is around $6,360. With a standard 36% front-end DTI, this loan would require a monthly income of $17,667 or higher — at least $212,004 per year.
How Other Debts Affect the Income Needed for an $800k House
With a gross monthly income of $17,667, most lenders would allow you to have total debts as high as $7,950. This equates to around $1,590 in loan payments other than your mortgage. Keep in mind that other significant monthly payments such as childcare, healthcare, food, and utilities aren’t counted in this figure because they don’t appear on your credit report.
Mortgage Payment | Other Existing Debts | Total Monthly Debt | Income Needed |
$6,360 | $1,500 | $7,860 | $17,667 |
$6,360 | $1,750 | $8,110 | $18,022 |
$6,360 | $2,000 | $8,360 | $18,578 |
$6,360 | $2,250 | $8,610 | $19,133 |
$6,360 | $2,500 | $8,860 | $19,689 |
$6,360 | $2,750 | $9,110 | $20,244 |
$6,360 | $3,000 | $9,360 | $20,800 |
$6,360 | $3,250 | $9,610 | $21,356 |
Income Needed to Buy an $800k Home by Interest Rate
Our estimates in this article are based on a 6.992% interest rate. However, your specific rate offers will differ based on your credit and financial profile.
In addition, lender credits and discount points can help lower your interest rate. Here's the income needed to buy an $800k home at different rates.
Interest Rate | Monthly Payment | Income Needed |
5.00% | $5,387 | $14,964 |
5.25% | $5,504 | $15,289 |
5.50% | $5,623 | $15,619 |
5.75% | $5,742 | $15,950 |
6.00% | $5,864 | $16,289 |
6.25% | $5,987 | $16,631 |
6.50% | $6,111 | $16,975 |
6.75% | $6,237 | $17,325 |
7.00% | $6,364 | $17,678 |
7.25% | $6,492 | $18,033 |
7.50% | $6,621 | $18,392 |
7.75% | $6,752 | $18,756 |
8.00% | $6,884 | $19,122 |
8.25% | $7,017 | $19,492 |
8.50% | $7,151 | $19,864 |
8.75% | $7,286 | $20,239 |
9.00% | $7,422 | $20,617 |
Buying an $800k House With a Larger Down Payment
Have more than 5% to put down toward your purchase? By putting down 10% or more, you can reduce your monthly payment and the income needed to qualify for a mortgage. Putting 20% down not only lowers the monthly income needed for an $800k house by nearly $3,000 but also eliminates PMI.
Down Payment (%) | 5% | 10% | 15% | 20% |
Down Payment ($) | $40,000 | $80,000 | $120,000 | $160,000 |
Amount Financed | $760,000 | $720,000 | $680,000 | $640,000 |
Monthly Payment | $6,360 | $6,021 | $5,695 | $5,321 |
Income Needed | $17,667 | $16,725 | $15,819 | $14,781 |
Actual Income Requirements for a $600k, $700k, or $800k House
While the above examples are a great estimation for the income needed to buy a $600k, $700k, or $800k house, your actual figures will vary based on your finances, credit score, and choice of lender.
To determine precisely how much home you can afford, check out today’s best mortgage rates and apply with a mortgage lender.
Methodology for Mortgage Calculations
We've shown how a few factors can impact the income needed to buy a home, but this is far from a comprehensive list. The actual cost of a mortgage varies from one borrower to the next.
In some areas, high property taxes and home insurance costs can make the payments (and required income) for a $600k, $700k, or $800k house far higher. Conversely, buyers in lower-cost markets might see figures well below our estimates.
For our calculations, except where otherwise noted, we assumed that:
Payments are based on a 30-year, fixed-rate conventional loan.
Borrowers qualify for a sample interest rate of 6.992% – the 30-year average according to the MRC rate tracker at the time of writing.
Borrowers make a 5% down payment — the minimum required for most conventional loans (though some conventional buyers may be eligible with just 3% down).
Lenders follow conventional guidelines allowing for a 36% front-end DTI and a 45% back-end DTI (though some allow up to 50% with compensating factors).
Property taxes are included in the monthly payments at an annual rate of 1% of the purchase price.
Homeowners insurance is included in the monthly payments with a premium of $400 per month.
Mortgage insurance costs are based on a credit score of 760 based on current MGIC rates.
Borrowers are not responsible for any homeowners association dues and are not rolling closing costs into their mortgage.
