How much income & down payment for a $1 million mortgage?

Do you have a growing family that needs more space and amenities than your current home? If you have the necessary income and assets, a home worth a million dollars or more may be the right solution.

Acquiring a million-dollar mortgage might seem like a dream scenario. However, it is achievable with the right planning and understanding of your financial requirements.

Most of us often wonder, what kind of income and down payment would I need to purchase such a luxurious property? If you've found yourself considering this question, you're in the right place.

You can also start the process of buying your dream home by applying for a mortgage pre-approval.

Would a million-dollar mortgage require a jumbo loan?

Indeed, a mortgage exceeding the traditional loan limit, such as a million-dollar mortgage, would demand a jumbo loan or a high-balance loan.

To qualify for a million-dollar mortgage, you need to show a high income and usually make a down payment. You'll also need to be a low-risk borrower with a qualifying credit score. A low debt-to-income ratio also helps.

You can also consider a conventional high balance loan, which is not the same as a jumbo loan. High balance refers to a high-cost area where agency and government loans will lend at higher amounts. Jumbo loans are loan amounts that exceed the conforming and high-balance limits, which means that they cannot be purchased by a government agency such a Fannie Mae or Freddie Mac.

Are government-backed loans available for mortgages of $1 million?

It’s possible to get a Jumbo FHA or Jumbo VA loan, but it depends on a lot of factors. The type of loan and the term, your down payment and your property location are key aspects that you’ll need to understand to determine if government loan programs are available for you.

In the U.S., government agencies offer loans, but they had a maximum limit of $1,209,750 in 2025 in high cost areas. You'll need to work with your mortgage lender to understand if a Jumbo FHA loan is possible for your situation. VA does offer jumbo loans up to $3 million in some cases.

Additionally, the borrower's DTI (debt-to-income ratio) should be below 43%. While government-backed loans may not fully cover a million dollar mortgage outside of high cost areas, other possibilities exist. Knowing your finances and loan requirements can lead to securing your dream home.

Jumbo FHA loan requirements

A jumbo FHA loan, exceeding low-cost FHA limits, requires a higher-than-average income, qualifying credit and ample savings.

Applicants need to show they have a steady income and a credit score of 500 or higher. Down payment options can vary, but typically it's 10%-20% of the home's purchase price, though FHA does allow 3.5% down payment options.

Additionally, you must guarantee the ability to cover closing costs and any unexpected expenses. These loans are only for people who can afford to pay more each month and have a lot of money saved.

Jumbo VA loan requirements

A jumbo VA loan allows veterans and military members to buy expensive properties without a large down payment.

For a million-dollar mortgage, you'll need a stable income that shows you can comfortably afford mortgage repayments. Even though VA loans don't require a particular credit score, most lenders prefer borrowers with a score of at least 620. However, for a jumbo VA loan, lenders might require a higher score. OriginPoint does not require a minimum credit score for a VA loan.

Despite VA loans not mandating a down payment, some lenders might require one for jumbo loans.

Are non-QM and non-agency jumbo loans available?

Non-QM loan

A non-QM loan, or non-qualified mortgage loan, is designed for homebuyers who may be missing the usual documents or may be self-employed.

Qualified loans are subject to certain restrictions that ensure borrowers can repay their loans. Non-QM loans have more flexible underwriting criteria and may have higher interest rates and fees because they are considered riskier than QM loans.

However, they may also offer benefits such as lower down payment requirements or more lenient credit score requirements.

Non-agency loans

OriginPoint’s national and regional non-agency loans could allow borrowers who don’t qualify for jumbo loans such as self-employed homebuyers to borrow up to $5 million through a partnership with additional lenders.

How much income do I need to afford $1 million mortgage?

As a typical standard, your monthly mortgage payment should not exceed 28% of your gross monthly income. If your annual salary is around $225,000 or higher, you might be in the right ballpark, depending on several other factors.

Key aspects of your personal finances, such as the size of your down payment and your debt-to-income ratio, will affect how much home you can afford. The amount of assets you have can also play a role in determining if you can afford a mortgage on a million dollar mortgage. So, make sure to review all aspects of your financial situation before proceeding with such a significant purchase.

In addition, the higher your down payment, the lower your mortgage. Saving a lot of money or converting assets for the down payment can make it easier to afford a million dollar mortgage.

Consulting with a financial advisor is recommended to thoroughly understand your unique circumstances. It makes sense to talk to someone before taking on a potential liability as large as a mortgage of $1 million or more.

How much of a down payment do I need to afford a million-dollar mortgage?

If you're in the market for a $1 million mortgage, you're likely wondering how much you need to save for the down payment.

Financial advisors often recommend a 20% down payment. Therefore, to purchase a home worth a million dollars, you'd generally need a hefty $200,000 for the down payment.

However, different mortgage programs could affect the down payment amount. For example, some such as non-agency loan programs can allow for down payment options that start as low as 10%.

A smaller down payment leads to higher monthly mortgage payments and potentially the need for private mortgage insurance (PMI). PMI protects the lender if the borrower fails to repay the loan.

Also, your monthly housing expenses, such as mortgage, insurance, and taxes, should not exceed 28% of your total monthly income.

To purchase a $1 million home, you must have sufficient income to comfortably cover the monthly mortgage payment. The amount of the payment can vary depending on factors such as the interest rate and term of the loan. It could be more than $5,000 in monthly costs.

Moreover, lenders will consider your debt-to-income ratio, which should ideally be below 36%. This ratio considers all of your monthly debts. These debts include car loans, student loans, and credit card payments. It also takes into account your planned mortgage payments.

The amount of money you need for a down payment depends on factors like the loan type and your financial health. If your dream home costs $1 million, a $200,000 down payment is a good amount to target, but it can vary. A strong income and low debt will make it easier for you to secure a mortgage for a $1 million home.

Which factors matter when trying to get a mortgage of $1 million?

• Your Gross Income
  Income is one of the most critical factors considered by lenders. To purchase a $1 million home, typically, an annual income of at least $225,000 is required. However, this requirement can vary based on several other factors.
  
• Down Payment
  Typically, you need a higher down payment for a more expensive home. You should consider putting down at least $200,000 for a $1 million home, although this can vary depending on the loan program.
  
• Debit-to-Income Ratio
  Banks look at how much of your income goes towards paying your debts. Having a high debt-to-income ratio may make it more challenging for you to get approved for a mortgage.
  
• Credit Score
  A good credit history is essential when applying for a home loan. Lenders favor borrowers with high credit scores because they perceive them as less risky.
  
• Asset Reserves
  Lenders may want to see that you have enough assets to cover several months of mortgage payments.
  
• Employment History
  Lenders generally prefer borrowers who have been stable in their job for at least two years.
  
• Market Conditions
  The demand for homes and interest rates can affect the price and affordability of a $1 million home.
  

How can I start the process for a million-dollar mortgage?

To get approved for a mortgage of $1 million or more, the first step is to obtain a pre-approval. Apply today to start the process.

If you meet the requirements, you will receive a pre-approval letter. You will also get an idea of the most money you can borrow for a house.

The path to your million-dollar dream home starts with a mortgage pre-approval from us!

OriginPoint is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the Nevada Department of Veterans Services, the US Department of Agriculture, or any other government agency. No compensation can be received for advising or assisting another person with a matter relating to veterans’ benefits except as authorized under Title 38 of the United States Code.

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