The subject line for my blog is a common topic that lenders use for consumer blogs for search engine optimization (or “SEO” – or an entity’s efforts to draw readers to its website). And, here is the answer to the question: You need anywhere from $100,000 to $300,000 in income to buy a $1 million dollar home right now. The reason there is so much variance is because there are so many factors that impact qualification, including: Size of down payment Property tax rates Homeowners insurance rates The type of financing available (conforming, jumbo, non-QM, etc.) The interest rate environment First-time homebuyer status Monthly consumer debt payments Let’s look at financing types to start with. Most competitive jumbo lenders limit total debt ratios (all monthly debt payments divided by gross monthly income) to 43%, while Fannie Mae limits debt ratios to 50%. So, if you are in a “high-cost area” where Fannie Mae loan limits are in excess of $1 million, you will qualify for a $1 million home...
