Serious about shopping for a $600,000 dwelling? Earlier than you begin looking listings, you’ll wish to know in case your earnings can help a mortgage that measurement. The earnings 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 life like expectations and make smarter monetary choices.
The quick 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 primarily based in your credit score rating, present debt, and month-to-month bills.
This estimate assumes a 30-year fastened mortgage, common rates of interest, and a reasonable down fee.
What’s the earnings wanted for a $600k home?
Lenders usually counsel that your whole month-to-month housing bills – mortgage, taxes, insurance coverage, and any HOA charges – keep beneath 28% to 31% of your gross month-to-month earnings. To remain inside these limits, you’ll seemingly must make between $11,700 and $15,000 per 30 days 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 fee measurement
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:
House 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 earnings must be round $14,200, or about $170,500 yearly, to remain inside the beneficial affordability vary.
Remember that when you put down lower than 20%, you’ll seemingly should pay personal mortgage insurance coverage (PMI), which is able to improve your month-to-month prices—and if property taxes are greater, you’ll want an excellent greater earnings to qualify.
Nonetheless, 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 packages 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 may afford
The earnings 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 may afford.
1. Down fee
The extra you place down, the much less you’ll must borrow and the decrease your month-to-month funds will probably 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 whole month-to-month debt (like automotive funds, bank cards, or pupil loans) to your earnings. Lenders typically choose a DTI beneath 36%, with housing prices not more than 28% of your gross earnings.
3. Rates of interest
Even small price modifications can have a big effect. As an example, a $600,000 dwelling at:
A 6.5% price might price ~$3,037/month (P&I)
A 7.0% price might bump that to ~$3,195/month
That further $158/month might push your qualifying earnings up by a number of thousand {dollars} per 12 months. As of June 2025, the common 30-year fastened price is round 7.4%, which is greater than charges seen in prior years.
4. Credit score rating
The next credit score rating can assist you safe a decrease rate of interest, which reduces your month-to-month fee and the earnings wanted to qualify. Most lenders supply the perfect phrases to consumers with scores above 740.
Learn>> How To Purchase A Home With Dangerous Credit score
5. Location and property taxes
Property taxes fluctuate extensively by area, and that modifications how a lot earnings you’ll want.
For instance, in Westchester County, NY or Prepare 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 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 may afford in month-to-month mortgage funds even when your earnings is excessive.
What it takes to afford a $600,000 dwelling: side-by-side eventualities
Right here’s how earnings and funds would possibly fluctuate for various purchaser varieties:
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)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 primarily based in your monetary state of affairs—and will even unlock higher charges or down fee help packages.
Suggestions that can assist you afford a $600k mortgage
Listed here are some sensible steps to enhance your shopping for energy and maintain month-to-month funds manageable:
Increase your credit score rating: Pay payments on time, decrease balances, and restrict new credit score functions.
Scale back your debt: Paying down loans improves your DTI and borrowing energy.
Save for a bigger down fee: This will decrease your month-to-month price and take away PMI.
Store round for lenders: Examine rates of interest, charges, and pre-approval quantities.
Use a co-borrower: Including a companion’s earnings can assist you qualify for extra.
Discover homebuyer help packages: 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 price range and reveals sellers you’re a critical purchaser.
Work with an actual property agent: An agent can assist you keep on price range and negotiate higher offers.
Deal with financial savings: Increase 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 earnings?
Probably; particularly in case you have 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 might face stricter mortgage phrases or greater rates of interest. In case 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 earnings do I would like for a $600k home with 5% down?
You’ll seemingly must earn round $180,000-$190,000 per 12 months, assuming you have got minimal debt.
4. Is location a giant consider affordability?
Sure. Property taxes and insurance coverage prices fluctuate considerably by state and county — and may elevate or decrease your required earnings.
5. What instruments can assist me calculate affordability?
On-line mortgage calculators can estimate what you may afford primarily based in your earnings, money owed, price, and down fee.
6. The place can I discover $600,000 properties?
Use Redfin’s dwelling search instrument to discover listings in your goal space. You may set value filters, view tax estimates, and get alerts for brand spanking new listings or value drops.
