When you’re applying for a home loan, your mortgage lender is going to be interested (understandably) in your ability to repay the likely six-figure sum you are borrowing. And that means providing proof of both your income and your existing assets — which may mean sharing some bank statements with the lender.
The number of bank statements you’ll need to provide depends on the lender you choose as well as the type of loan you’re applying for. You typically won’t have to submit more than two months’ worth of statements for most loan types. In some cases, however, you may need to provide six to 12 months’ worth of bank statements. To know for sure how many bank statements you need to submit, the best move is to talk to your loan officer.
• Most lenders require two to three months of bank statements to verify assets, cash flow, and financial stability during the mortgage application process.
• Bank statements help lenders confirm you have enough funds for the down payment, closing costs, and reserves, if required.
• Lenders review statements for large or unusual deposits, which may need to be explained or documented.
• Statements typically must be complete and unaltered, showing your name, account number, and transaction history.
• Requirements may vary based on loan type, lender guidelines, and borrower profile, with some situations requiring additional documentation.
How to Get Bank Statements
Once you know how many bank statements you need based on your lender’s mortgage requirements, the next question is: how and where do youget them?
Bank statements can usually be downloaded from your bank’s online portal. If you have trouble finding the documents, you can contact your bank’s customer service team.
It’s not unusual to wonder how long to keep bank statements and other financial documents, and banks are accustomed to receiving requests for old statements.
Why Are Bank Statements Needed for Mortgage Applications?
Bank statements are used by mortgage lenders in order to ensure you have the money it will take to fund the upfront costs of the loan, as well as to confirm that you have regular income.
However, lenders may also use other documents to confirm these eligibility requirements, such as tax returns or W-2s. It can be a hassle to pull together all the paperwork for your mortgage application, but documentation is an important part of the lender’s defense against mortgage fraud.
What Underwriters Look for in Bank Statements
Mortgage underwriters may also be looking at your bank statements to ensure the funds you’re using for your down payment or closing costs are “seasoned money.” That is to say, the money has been in your possession for 60 days or more. This is because some lenders have restrictions against gift funds or family loans being used to pay upfront loan costs, such as the down payment on a home.
What Are Bank Statement Loans?
Bank statement loans are mortgages that use bank statements specifically, rather than tax returns, to qualify applicants for a mortgage loan.
If you’re applying for a bank statement mortgage, you will likely need to submit substantially more of those statements — sometimes as much as two years’ worth.
Bank statement loans can make getting a mortgage possible for self-employed borrowers or others whose paperwork might not match the traditional required documentation. However, they can be harder to find, and may come with more stringent credit requirements and higher minimum down payments.
What Other Documents Are Needed for a Mortgage Application?
Of course, the best way to know exactly what documentation is required for your mortgage application is to ask your lender. However, documents that are often required for a mortgage application include the following:
• W-2 forms
• Pay stubs
• Tax returns
• Bank statements
• Alimony or child support documentation
• Retirement and investment account statements
• Gift letter, if you’re using gift funds
• Identification documentation
Depending on your specific circumstances, you may also need to provide proof of rental payments, a divorce decree, any bankruptcy or foreclosure records, or other specific documents. Again, your lender will have the full details.
The Takeaway
Depending on the type of loan you’re applying for, you may need to submit only a couple months’ worth of bank statements. If you’re applying for a bank statement loan, you may need to submit up to two years of banking history. Fortunately, bank statements are easy to generate in most banks’ online management portals, so all you’ll have to do is download and submit them.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Does the FHA require two months of bank statements?
Lenders offering Federal Housing Administration (FHA) loans have their own specific requirements as far as how many months of bank statements you’ll need to provide. Some lenders offer FHA loans with just two months’ worth of statements, but you may be asked to submit more if the lender has specific requirements or some other part of your application creates the need (such as a lower credit score, for example).
How many months of bank statements do you need to refinance your mortgage?
Refinancing your mortgage is, in many ways, basically just like getting a mortgage in the first place — which means that you’ll again likely be asked to submit two months’ worth of bank statements. However, as always, specific lenders have different requirements, and if you have a nontraditional application, you may be asked to submit more.
What is a 12-month bank statement mortgage?
Also known as a bank statement loan, these mortgages use bank statements as the primary qualifying factor to approve you for a home loan (as opposed to other traditional documentation like W-2s or tax returns). For these loans, you may need to provide 12 or even 24 months’ worth of bank statements, since they’ll be such an important source of information for the lender.
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SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Home prices may have flattened out a bit in some markets, but VA loan limits are still getting a bit of a boost in 2026.
For most U.S. counties, lenders’ baseline limit for VA loans (backed by the U.S. Department of Veterans Affairs) is now $832,750, compared to $806,500 in 2025. And loan limits for single-family homes in counties with higher home costs also increased — from a maximum (or “ceiling”) of $1,209,750 in 2025 to $1,249,125 in 2026.
What could higher loan limits mean for you? If you’re a veteran considering a home loan, read on for a breakdown of what you can expect if you purchase a home this year.
• VA home loan limits for 2026 have increased from $806,500 to $832,750, reflecting high home prices.
• VA loan applicants with full entitlement because they are first-time homebuyers or have paid off previous VA loans do not have to worry about loan limits.
• The national ceiling for high-cost counties has risen from $1,209,750 to $1,249,125.
• Higher limits allow more veterans to qualify for larger loans without a down payment, benefiting those in expensive areas.
• The VA guarantees up to 25% of the loan amount, with limits based on the borrower’s remaining entitlement.
What Is the VA Loan Limit?
To be clear: The VA doesn’t limit how much an eligible veteran, service member, or survivor using a VA loan benefit can borrow to finance a home. There are only limits on how much of the loan amount the VA will guarantee if the borrower is unable to repay the mortgage. And that limit can vary based on the status of the borrower’s VA entitlement.
Most borrowers who apply for a VA loan have something called “full entitlement.” This means that if the borrower defaults, the VA will guarantee — or repay the lender — up to 25% of whatever loan amount the lender approved based on its own criteria. If you’re a first-time homebuyer, or if you’ve paid off a past VA loan, you can expect to have a full entitlement.
But if a borrower has what the VA refers to as a “remaining entitlement” (they have a VA loan they’re still paying back), the VA will limit its guarantee based on the Federal Housing Finance Agency (FHFA) loan limit in the county where the home is being purchased.
Instead of paying the lender up to 25% of the full loan amount if the borrower defaults, the VA will limit its guarantee to up to 25% of the applicable FHFA loan limit minus the amount of the entitlement the borrower already used. Borrowers can still get a VA loan using their remaining entitlement, but they may have to make a down payment to get that loan.
To check your VA entitlement status, you can request a certificate of eligibility (COE) through your lender, online, or by mail.
💡 Quick Tip: Buying a home shouldn’t be aggravating. SoFi’s online mortgage application is quick and simple, with dedicated Mortgage Loan Officers to guide you from start to finish.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
When Do VA Loan Limits Apply?
You may wonder when VA loan limits apply and, more specifically, how annual changes to loan limits are calculated. The VA bases its loan guarantee limits on the conforming loan limits (CLL) the FHFA sets for conventional home mortgage loans that are eligible for purchase by Fannie Mae and Freddie Mac.
By law, the FHFA must adjust these limits annually to reflect changes to home prices in the U.S. Between the third quarter of 2024 and the third quarter of 2025, home prices increased, on average, by 3.26%, based on the FHFA House Price Index. So the 2026 baseline CLL increased by that percentage.
But your county’s loan limit could be considerably higher, depending on average home prices in your area.
Higher home prices across the U.S. brought the FHFA’s baseline limit (and, therefore, the VA’s baseline limit for 2026) to $832,750 for a single-family home in most counties.
But in counties where 115% of the median home value is higher than the baseline CLL, the limit has been increased by a percentage that reflects those higher prices. There is a ceiling, or cap, however, of 150%.
Here’s what that looks like for a single-family home in 2026 vs. 2025.
VA Loan Limits in 2026and 2025
Year
National Baseline
115% to 149%
National Ceiling (150%)
VA Loan Limits 2026
$832,750
$957,662 to $1,240,797
$1,249,125
VA Loan Limits 2025
$806,500
$927,475 to $1,201,685
$1,209,750
If you’re buying in Alaska, Hawaii, Guam, or the U.S. Virgin Islands special statutory provisions dictate the loan limit, which in 2026 is $1,249,125 for a single-family home.
VA Loan Limit Example
Here’s a hypothetical example of how a borrower could be affected by the county loan limit on a VA loan.
Let’s say Joe, a Navy veteran, wants to buy a home in San Diego County, even though he knows the cost of living in California is higher than average. Joe manages to find a $715,000 single-family home and he wants to buy with a VA loan, but he still owes $100,000 on another VA loan.
The 2026 single-family limit in San Diego County is $1,104,000. Since the VA will guarantee up to a quarter of that amount, Joe has a maximum entitlement of $276,000.
$1,104,000 x .25 = $276,000
But Joe has to subtract the amount of his entitlement he’s already used, which leaves him with $176,000.
So, the VA would guarantee up to $176,000 of Joe’s loan.
Since most lenders want at least 25% of a borrower’s loan amount to be covered by the VA entitlement and/or a down payment, Joe might have to make a $2,750 down payment to get a VA loan for this home.
$715,000 x .25 = $178,750
$178,750 – $176,000 = $2,750
How Does My County Loan Limit Affect Me?
Just like Joe in the example above, if you’re using a remaining entitlement, your county loan limit could determine whether you’ll have to make a down payment to buy the home you want.
It doesn’t mean you can’t get the loan. If you have enough to make the down payment required by your lender, you may even qualify for a VA-backed loan that’s more than your county loan limit.
It’s important to note that though the example provided here is for a home purchase, the same entitlement limits apply if you’re considering refinancing your VA loan. In that case, your county limit could affect how much you’ll be asked to pay in closing costs.
💡 Quick Tip: Apply for a VA loan and borrow up to $1.5 million with a fixed- or adjustable-rate mortgage. The flexibility extends to the down payment, too — qualified VA homebuyers don’t even need one!
How to Apply for a VA Home Loan
Most VA loans are “VA-backed” loans, which means they’re issued by approved private lenders. The VA’s guarantee that it will help repay the lender if a borrower defaults is an incentive for lenders to offer these loans with attractive terms.
Still, it can be a good idea to shop around for the loan that best meets your family needs, and compare interest rates, fees, customer service, and any additional benefits various lenders might be offering.
You also may want to compare the terms of your top VA loan offer to what you can get with different types of mortgage loans, including a conventional loan.
Of course, no matter which type of loan you ultimately choose, you’ll still have to qualify for a mortgage with a lender.
There isn’t a requisite minimum credit score for VA loans. Instead, the VA asks lenders to review the borrower’s “entire loan profile,” which could include your credit history, DTI ratio, employment history, and assets. Individual lenders also may have their own approval criteria you should be aware of when you’re ready to apply for a VA loan.
Pros and Cons of VA Loan Limits
The VA loan limit is just one of several factors you may want to consider if you’re thinking about using a VA loan for a home purchase or a mortgage refinance. Like any other mortgage option, VA loans have their pros and cons. Here are a few to keep in mind:
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Pros:
• Interest rates may be lower with a VA loan than with a conventional loan.
• You may not need to make a down payment or pay mortgage insurance.
• Though non-VA jumbo loans may require a higher down payment, this isn’t necessarily true with a VA jumbo loan.
• If you decide to sell your home, you can allow the buyer to assume (or take over) your existing mortgage.
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Cons:
• VA purchase loans are only for primary homes; you can’t use the loan to buy a vacation home or to invest in a home that isn’t your main residence.
• The VA charges a one-time “funding fee” that’s designed to cover foreclosure costs when homebuyers default on a loan. Currently, the fee ranges from 1.25% to 3.3% of the loan.
• The home you hope to buy must be evaluated by a VA-approved appraiser to ensure it meets the VA’s minimum property standards. If the home you want is too rundown, it may not pass this appraisal.
VA loan limits are based on home prices in the U.S., and they’re adjusted annually to reflect price increases.
If you’re a first-homebuyer or you’ve paid off a past VA loan, you shouldn’t have to worry about VA loan limits. But if you want to buy a home and you already have a VA loan, the loan limit for your county could determine whether you’ll have to make a down payment to qualify for the amount you hope to borrow.
SoFi offers VA loans with competitive interest rates, no private mortgage insurance, and down payments as low as 0%. Eligible service members, veterans, and survivors may use the benefit multiple times.
Our Mortgage Loan Officers are ready to guide you through the process step by step.
FAQ
Will VA home loan limits increase in 2026?
VA home loan limits increased significantly in 2026. The baseline limit for VA loans is now $832,750, compared to $806,500 in 2025.
What is the conforming loan limit for 2026?
The national baseline conforming loan limit for 2026 is $832,750, although some counties have higher limits. The VA loan limit for a county is the same as its conforming loan limit.
What is the DTI limit for a VA loan in 2026?
The Department of Veterans Affairs hasn’t set a hard-and-fast limit on the debt-to-income (DTI) ratio it requires for its loans. But generally, lenders allow a 41% maximum for a VA loan.
Photo credit: iStock/Thai Liang Lim
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
^SoFi VA ARM: At the end of 60 months (5y/1y ARM), the interest rate and monthly payment adjust.
At adjustment, the new mortgage rate will be based on the one-year Constant Maturity Treasury (CMT) rate, plus a margin of 2.00% subject to annual and lifetime adjustment caps.
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Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
If you’re 62 years or older and are looking to move, a Home Equity Conversion Mortgage (HECM) for Purchase could help you pay for your new home. An HECM for Purchase is a government-insured reverse mortgage that you can put toward buying a house. With an HECM for Purchase, you won’t have to make mortgage payments as long as you keep up with property taxes and other obligations.
However, this type of reverse mortgage can come with high closing costs and insurance premiums, so it may not be your most affordable option for financing a home. Read on for the full story of the HECM for Purchase program, along with its pros and cons.
• HECM for Purchase is a reverse mortgage program that allows homeowners aged 62 or older to use loan proceeds to buy a new primary residence.
• Borrowers don’t make monthly mortgage payments while living in the home, though they must still pay property taxes, insurance, and maintenance.
• The loan combines selling your current home and buying a new one into a single transaction with one set of closing costs.
• A significant down payment is required, often a large portion of the home’s price, with the reverse mortgage covering the remainder.
• HECM for Purchase loans are non‑recourse, meaning you or your heirs won’t owe more than the home’s value when the loan is repaid.
What Is an HECM?
An HECM is a type of reverse mortgage — specifically, the kind that is insured by the Federal Housing Administration (FHA). HECMs allow people 62 and older to convert the equity in their home into cash. (The chief HECM vs. reverse mortgage differentiator is the FHA’s involvement in HECMs.)
You’ll need to own your property outright or have a good amount of equity built up to qualify for an HECM. Eligible borrowers can turn that equity into cash and won’t have to pay back the home mortgage loan until they move, sell the home, or die. In those events, the HECM must be paid back in its entirety, along with any interest charges.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
What Is an HECM for Purchase?
An HECM for Purchase is a type of HECM that allows homeowners to borrow against their current residence and pay for a new one in one transaction with one set of closing costs. It’s designed for homeowners who are looking to move into a new primary residence. You can’t use an HECM for Purchase to finance a vacation home or an investment property.
Like other HECMs, an HECM for Purchase does not require repayment during the borrower’s lifetime while they (or their surviving spouse) are living in the house. However, borrowers can pay down the loan’s principal and interest if they choose. They also must meet other payment obligations, including property taxes, homeowners insurance, and maintenance costs.
The HECM for Purchase will become due if the borrower moves or dies. As a non-recourse loan, however, the HECM for Purchase will never charge more than the value of the home it was used to finance.
HECM for Purchase Requirements
There are several requirements you’ll need to meet to qualify for an HECM for Purchase. Here are the main ones.
Age Requirement (62+)
HECM for Purchase loans are exclusively offered to borrowers who are age 62 or older. By contrast, traditional mortgages don’t have an age restriction, apart from the age of majority in your state (typically at least 18).
Income and Credit Qualifications
You’ll also need to meet income and credit requirements to qualify for an HECM for Purchase. While there’s no stated minimum credit score, having debts in delinquency or default could be an obstacle to qualifying.
Lenders also consider your residual income, or the amount of income you have after subtracting certain expenses. You’ll need to show that you have sufficient residual income to keep up with living expenses.
Financial Assessment
A lender will also assess your overall finances to ensure you can meet the financial obligations of the HECM for Purchase loan, which include paying property taxes and homeowners insurance. Plus, you’ll need to make a sufficient down payment on the new property, typically around 50%.
How HECM for Purchase Works
An HECM for Purchase lets you draw on the equity of your current home to finance the purchase of your next home. It combines two transactions — a reverse mortgage and a new mortgage — into one to simplify the home purchase process.
You won’t have to make payments on your HECM for Purchase while you live in your house, but you will have to keep up with payments of property taxes, homeowners insurance, maintenance expenses, and any homeowners association fees.
HECM for Purchase loans are backed by the FHA, so you’ll need to work with a lender that specializes in these loans to get one.
Down Payment Amount
To use an HECM for Purchase, you’ll need to sell your original home and use the proceeds to make a sufficient down payment on your new home. Then you can finance the remaining amount with your HECM loan. The required down payment may range from 45% to 62% of the home’s purchase price, depending on the borrower’s and spouse’s age. If you have money left over after making the down payment, you can receive it as a lump sum or as fixed monthly payments.
There are several benefits to taking out an HECM for Purchase loan.
• No mortgage payments: With an HECM reverse mortgage for purchase loan, you won’t have to make principal and interest payments while you live in the house and only cover essential charges, like taxes. A conventional mortgage, by contrast, requires monthly repayment.
• More purchasing power: An HECM for Purchase could increase your purchasing power and bring your goal of buying a new home within reach, especially if you’ve built up a good deal of equity in your current property.
• Avoid dipping into savings: By using an HECM for Purchase to buy a home rather exhausting your savings, you can avoid draining your retirement funds or other accounts to buy a house.
• Debt won’t exceed home value: As noted above, an HECM for Purchase is a non-recourse loan, so the debt you or your heirs owe will never exceed the home’s value, even if the property value dips in the future.
Cons of HECM for Purchase
At the same time, an HECM for Purchase loan has some downsides to consider before you borrow.
• Charges interest, closing costs, and premiums: The HECM for Purchase can come with high closing costs, which include origination fees, title insurance, and appraisal fees. It also charges annual Mortgage Insurance Premiums and accrues interest based on the reverse mortgage interest rate you’re given at the outset of the loan.
• Requires you to pay property taxes and other expenses: You’ll need to pay property taxes and homeowners insurance to keep the loan in deferred repayment, as well as maintain the property to acceptable standards.
• Demands that you live in the new home full-time: Your home must be your new primary residence. If you move or sell, you’ll have to pay back the HECM for Purchase loan.
• Calls for a large down payment: This loan program is reserved for borrowers who can make a large down payment, sometimes 50% or higher, for their new home.
Alternatives to Consider
Before applying for an HECM for Purchase, it’s worth considering alternative financing options, such as:
• Traditional mortgage: A conventional mortgage typically requires a credit score of at least 620, a down payment (though not as high as 50%), and a debt-to-income ratio below 50% — and sometimes as low as 43%. You’ll also need to have sufficient income to qualify.
• Home equity loan or home equity line of credit (HELOC): Homeowners can also tap into their equity with a home equity loan or HELOC. You could use this “second mortgage” to finance another home, but be cautious about over-borrowing. A lender can foreclose on your home if you miss payments.
• Proceeds from home sale: Selling your home is another way to finance the purchase of a new one, especially if you’re downsizing to a more affordable place. In this case, you might have extra money left over to put into savings or invest.
The HECM for Purchase program can simplify the home-buying process for seniors who want to use a reverse mortgage to buy a new house. As long as you keep up with property taxes, homeowners insurance, and other required costs, you won’t have to make any mortgage payments on your HECM while you reside in your new home. At the same time, HECM for Purchase loans come with closing costs and premiums. Consider all your options to determine the best type of financing for your next home purchase.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
What types of homes qualify for HECM for Purchase?
The following types of homes qualify for the HECM for Purchase program:
• Single-family homes
• 2- to 4-unit homes where the borrower occupies one unit
• HUD-approved condo projects
• Individual condo units that meet FHA single-unit approved requirements
• Manufactured homes that meet FHA requirements
The property must also meet all of the FHA’s property standards and flood requirements.
How long can I stay in the home with HECM for Purchase?
You can stay in the home you finance with an HECM for Purchase loan indefinitely. The loan will become due when the last borrower (or the borrower’s spouse) moves, sells the home, or passes away.
Are there limits on HECM for Purchase loan amounts?
An HECM for Purchase is limited to the appraised value of the home or the sales price of the new home, whichever is lower. It cannot exceed the HECM FHA mortgage limit, which is $1,249,125 for 2026.
Photo credit: iStock/FG Trade
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
The monthly payments on a $400,000 mortgage could range from about $2,300 to more than $3,700, depending on the loan’s interest rate, term, and other factors. But hopeful homebuyers would be wise to consider how much that mortgage could cost over time as well as what the monthly payments might be.
Read on for a breakdown of what some of your home-buying costs might be, and how they could affect the total cost of a $400,000 mortgage.
• Monthly payments on a $400,000 mortgage vary widely depending on the interest rate and loan term.
• Longer loan terms lower monthly payments but increase total interest, while shorter terms raise monthly costs but reduce overall interest paid.
• Closing costs like lender fees, appraisal costs, taxes, and optional mortgage points can add 3%–6% of the loan amount upfront.
• Interest costs over the life of the loan are significant, potentially totaling hundreds of thousands of dollars on a 15‑ or 30‑year mortgage.
• Shopping around for different lenders, loan types, and rates helps borrowers find the best fit.
What Will a $400,000 Mortgage Cost?
There are several different costs you may run into when taking out a mortgage. Most of the time, they can be divided into three main categories.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
Closing Costs
Closing costs are expenses you’ll pay upfront when you get a loan. They can include things like loan processing fees, third-party services such as appraisals and title insurance, and government fees and taxes. You also may decide to pay mortgage points (also called discount points) upfront on your loan to lower the interest rate.
Closing costs can vary significantly from one loan type and lender to the next, but they generally range from 3% to 6% of the mortgage amount.
Monthly Payments
Monthly mortgage payments, which are paid over the life of your loan, typically include two main parts:
• Principal: This portion of your mortgage payment goes directly toward paying back the amount you borrowed.
• Interest: This is the fee the lender will charge you for borrowing money. The amount of interest you pay each month will be calculated by multiplying your interest rate by your remaining loan balance.
Escrow
Some homebuyers may also have a third amount, called escrow, included in their closing costs and/or monthly payments. Lenders often collect and hold money in an escrow account so they can be sure critical bills like homeowners insurance and property taxes are paid on time. (Curious about the most budget-friendly places to buy? Check out this list of the most affordable cities in each state.)
What Would the Payment Be on a $400,000 Mortgage?
We’ll keep things simple and eliminate the costs associated with an escrow account to calculate what the payment on a $400,000 mortgage’s monthly payments might be.
Let’s say you wanted to purchase a home for $500,000, and you had $100,000 for a down payment. If your lender offered you a 7% annual percentage rate (APR) on a 15-year loan for $400,000, you could expect your monthly payment — principal and interest — to be about $3,595. If you had a 30-year loan with a 7% APR, your payment could be about $2,661.
Here are some more examples that show the difference between a 15-year loan vs. a 30-year loan, using SoFi’s Mortgage Calculator:
APR
Payment with 15-year Loan
Payment with 30-year Loan
5.5%
$3,268
$2,271
6.5%
$3,484
$2,528
7.5%
$3,708
$2,796
Where Can You Get a $400,000 Mortgage?
Homebuyers may have a few different options when deciding where to go for a mortgage, including online banks and lenders, and traditional banks and credit unions. Because the rates and terms lenders offer may vary, it can be a good idea to shop around for a mortgage that’s the right fit for your individual needs.
Before you start looking for quotes, though, you may want to sit down and review the different types of mortgages you can qualify for. How would a 15-, 20-, or 30-year mortgage affect your monthly payments? Are you looking for a fixed or adjustable mortgage rate? Would you be better off with a conventional mortgage or a government-backed loan? (Some loans may have more flexible requirements for down payment amounts or a borrower’s credit score.)
Once you start comparison shopping, you can note the pros and cons of various offers and narrow down your choices. You also may want to read some online reviews of the lenders you’re considering.
How Much Interest Will You Pay on a $400,000 Mortgage?
The interest rate your lender offers can make a big difference to the overall cost of your mortgage. So can the mortgage term you choose.
On a $400,000 mortgage at a 7% APR, for example, your total interest costs could range from $247,156 to $558,036, depending on the length of the loan you choose (15 vs. 30 years).
Spreading out your mortgage payments over a longer term can lower your monthly payment, but you can expect to pay more for the loan overall. Your financial circumstances at the time you take out your loan may dictate which is a priority for you. (If you go for a longer loan, and your situation changes, you may decide to refinance your home mortgage to a shorter term down the road.)
How Does Amortization Work on a $400,000 Mortgage?
Though your payment will remain the same every month (if you have a fixed-rate loan), the amount you’ll pay toward interest vs. principal will change over the life of your home loan. In the first years, the majority of your payment will go toward interest. But as your balance goes down, more of your payment will go toward principal.
Your lender can provide you with a mortgage amortization schedule that shows you how the proportions will change as you make payments on your loan.
Here’s what the amortization schedules for a $400,000 mortgage with 30- and 15-year terms might look like. (Keep in mind that your payments may include other costs besides principal and interest.)
Amortization Schedule, 30-Year Loan at 7% APR
Year
Amount Paid
Interest Paid
Principal Paid
Remaining Balance
1
$31,934.52
$27,871.28
$4,063.24
$395,936.76
2
$31,934.52
$27,577.55
$4,356.97
$391,579.79
3
$31,934.52
$27,262.58
$4,671.94
$386,907.85
4
$31,934.52
$26,924.85
$5,009.67
$381,898.18
5
$31,934.52
$26,562.70
$5,371.82
$376,526.36
6
$31,934.52
$26,174.37
$5,760.15
$370,766.21
7
$31,934.52
$25,757.97
$6,176.55
$364,589.66
8
$31,934.52
$25,311.46
$6,623.06
$357,966.60
9
$31,934.52
$24,832.68
$7,101.84
$350,864.76
10
$31,934.52
$24,319.29
$7,615.23
$343,249.53
11
$31,934.52
$23,768.78
$8,165.74
$335,083.80
12
$31,934.52
$23,178.48
$8,756.04
$326,327.76
13
$31,934.52
$22,545.51
$9,389.01
$316.938.75
14
$31,934.52
$21,866.78
$10,067.74
$306,871.01
15
$31,934.52
$21,138.98
$10,795.54
$296,075.46
16
$31,934.52
$20,358.57
$11,575.95
$284,499.51
17
$31,934.52
$19,521.74
$12,412.78
$272,086.73
18
$31,934.52
$18,624.42
$13,310.10
$258,776.63
19
$31,934.52
$17,662.23
$14,272.29
$244,504.35
20
$31,934.52
$16,630.49
$15,304.03
$229,200.31
21
$31,934.52
$15,524.16
$16,410.36
$212,789.95
22
$31,934.52
$14,337.85
$17,596.67
$195,193.28
23
$31,934.52
$13,065.79
$18,868.73
$176,324.55
24
$31,934.52
$11,701.76
$20,232.76
$156,091.79
25
$31,934.52
$10,239.14
$21,695.38
$134,396.41
26
$31,934.52
$8,670.78
$23,263.74
$111,132.66
27
$31,934.52
$6,989.04
$24,945.48
$86,187.18
28
$31,934.52
$5,185.73
$26,748.79
$59,438.39
29
$31,934.52
$3,252.05
$28,682.47
$30,755.92
30
$31,934.52
$1,178.60
$30,755.92
$0
Amortization Schedule, 15-Year Loan at 7% APR
Year
Amount Paid
Interest Paid
Principal Paid
Remaining Balance
1
$43,143.76
$27,504.57
$15,639.19
$384,360.81
2
$43,143.76
$26,374.01
$16,769.75
$367,591.06
3
$43,143.76
$25,161.72
$17,982.04
$349,609.02
4
$43,143.76
$23,861.80
$19,281.96
$330,327.06
5
$43,143.76
$22,467.90
$20,675.85
$309,651.21
6
$43,143.76
$20,973.24
$22,170.51
$287,480.69
7
$43,143.76
$19,370.54
$23,773.22
$263,707.47
8
$43,143.76
$17,651.97
$25,491.79
$238,215.68
9
$43,143.76
$15,809.16
$27,334.59
$210,881.09
10
$43,143.76
$13,833.14
$29,310.61
$181,570.48
11
$43,143.76
$11,714.28
$31,429.48
$150,141.00
12
$43,143.76
$9,442.24
$33,701.52
$116,439.48
13
$43,143.76
$7,005.95
$36,137.80
$80,301.67
14
$43,143.76
$4,393.55
$38,750.21
$41,551.47
15
$43,143.76
$1,592.29
$41,551.47
$0
How to Get a $400,000 Mortgage
If you’re feeling intimidated by the whole home-buying process, breaking it down into some manageable steps may make things a little less overwhelming.
1. Determine What You Can Afford
Reviewing your income, debts, monthly spending, and how much you’ve saved for a down payment can be a good place to start. This will help you decide how much of a down payment you can handle and how much house you can afford.
2. Compare Different Loans and Lenders
Once you know what you can afford, you can start looking for the loan type, interest rate, loan term, and lender that meet your needs.
3. Consider Getting Preapproved
If you’ve decided on a loan and lender, it can be a good idea to go through the preapproval process. Getting a letter from your lender that says you’re preapproved for a certain loan amount lets sellers know you’re a serious buyer. (And it can come in handy if you get into a bidding war for your dream home.)
4. Get Ready to Go House Hunting
When you have your loan lined up, you can look for and potentially make an offer on a house. And since you already know how much you can afford, you can target homes in that range.
5. Submit a Full Mortgage Application
Once your offer is accepted and you’re ready to move forward, your lender will ask you to complete a more formal loan application and provide additional financial information and documentation.
6. Prepare for Closing
While you’re waiting for a final loan approval and a closing date, you can shop for homeowners insurance, get a home inspection, and make sure you have all the money you need for your down payment and closing costs.
7. Take Ownership of Your New Home
At the closing you can sign all the necessary paperwork, hand over the funds needed to make the purchase, and — congratulations! — get the keys to your new home.
Researching the different costs you might have to pay if you plan to take out a $400,000 mortgage can help you stick to your budget and avoid unpleasant surprises.
The choices you make about the type of loan you get, the interest rate, loan term, and other costs, will all play part in how much you pay every month — and over the length of the loan. So it can be a good idea to run the numbers before you decide on a particular lender or loan.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
How much is a $400,000 mortgage a month?
The monthly payment for a $400,000 mortgage could range from about $2,300 to more than $3,700, depending on several factors, including the interest rate and loan term.
How much income is required for a $400,000 mortgage?
Lenders will look at several factors besides your income to determine if you can afford a $400,000 mortgage. You can expect to be asked about your debt, credit history, assets, and the down payment you plan to make.
How much is a down payment on a $400,000 mortgage?
Your down payment may vary depending on the price of the house you choose, the type of loan you get, and if you want to avoid paying private mortgage insurance as part of your borrowing costs. Traditionally, lenders like to see a 20% down payment, which on a $500,000 home would be a $100,000 down payment and a $400,000 mortgage. But many lenders accept lower down payments.
Can I afford a $400,000 mortgage with a $70,000 salary?
Since your housing costs (monthly payments, insurance, etc.) would likely be more than half your monthly salary, it could be a challenge to afford a $400,000 mortgage on a $70,000 salary.
Photo credit: iStock/svetikd
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
If you’re looking at a $550,000 mortgage, you’ll need some solid numbers to help you afford the home you want. Assuming a 7% interest rate, you’ll need to make around $160,000 per year to afford the roughly $4,800 monthly payment on this loan.
This amount includes an estimate for taxes and insurance by Fannie Mae and a 36% total debt ratio. This number also assumes a higher purchase price of $687,500 with a 20% down payment to get the $550,000 mortgage with no private mortgage insurance (PMI).
We’ll run through a few scenarios to help you understand how different factors affect how much you’ll need to make to meet the requirements for this mortgage. As with any advice, it’s best to talk to a good lender, who can help you along the path of home affordability.
• To qualify for a $550,000 mortgage with about a 7% interest rate, many borrowers need an annual income of roughly $160,000 to $200,000.
• Longer loan terms lower monthly payments but increase total interest, while shorter terms raise monthly costs but reduce overall interest paid.
• Lenders look closely at your debt-to-income (DTI) ratio, often preferring a DTI below 36%, but some may allow higher ratios up to around 45%.
• How much house you can afford also depends on factors like your credit score, employment history, and down payment size, not just income alone.
• Shopping around for different lenders, loan types, and rates helps borrowers find the best fit.
Income Needed for a $550,000 Mortgage
It requires a significant amount of income to pay for housing costs around the country. According to the most recent data from the U.S. Census Bureau obtained from the Federal Reserve Bank of St. Louis, the national median housing price is $410,800 in the second quarter of 2025. If you have no debt, you’ll need to make around $130,000 for the average house.
For a $550,000 mortgage loan, the amount needed is around $160,000. We arrived at this number by calculating the monthly payment on a $550,000 mortgage with a 7% APR, assuming at least a 20% down payment was already made on the purchase price to eliminate the cost of mortgage insurance. This number is just for the mortgage with taxes and insurance and assumes you have no other debt.
If you have debt, though, you need to account for that in determining how much money is required to afford your $550,000 mortgage and your debt obligations. Here’s how to do that.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
How Much Do You Need to Make to Get a $550K Mortgage?
You need to make a reliable annual income of $160,000 to $200,000 (give or take, depending on your debt level) to get a $550,000 mortgage. When interest rates were lower, it may have been possible to get a $550,000 loan on a smaller income. Now, given that interest rates have risen, you need to lower your debt, increase your income and savings, and have a high salary to afford a $550,000 mortgage.
What Is a Good Debt-to-Income Ratio?
A good debt-to-income ratio is as low as you can get it. Lenders favor levels below 36%, but you may be able to find a lender that allows for a debt-to-income (DTI) ratio around 45%.
What Determines How Much House You Can Afford?
How much house you can afford is determined by a number of factors. To give you a general idea of how they work together, consider the following:
Income
How much you make is the biggest factor in determining how much you can afford. But it’s also the predictability of the income that’s important to a lender. If you’re in business for yourself, but don’t have two years worth of tax returns, it’s hard to prove income, and the lender is less likely to want to lend you money.
Debt
Your debt obligations take away from how much home you can afford. More debt = less money available for a house payment = lower mortgage amount.
Down Payment
If you have a larger down payment, you’ll be able to afford a more expensive home. A down payment of 20% is ideal because you can avoid PMI (private mortgage insurance). However, if you have good credit and a good lender, you may be able to find a loan type that doesn’t require 20% down and still get a good rate. Use a mortgage calculator to see how a down payment affects your home affordability.
Loan Type
The different types of mortgage loans affect how much house you can afford, since your monthly payment will vary. For example, a 15-year mortgage will have a higher monthly payment, which means you’ll have to choose a lower-priced home. You’ll also see your home affordability change when choosing between fixed-rate and adjustable-rate mortgage, especially if you compare 5-year ARMs vs. 30-year fixed mortgages.
If you need a loan that exceeds the conforming loan limits for your area, you’re looking at a jumbo loan, which has different requirements (such as a higher credit score and down payment) that will affect home affordability.
Lender and Interest Rate
The lender you choose can also affect home affordability. This is because lenders offer different rates and have different risk tolerances. For example, if you have a lender that’s willing to underwrite loans with a 45% DTI ratio, you’ll qualify for a larger mortgage than you would with a lender that’s only willing to accept a 36% DTI ratio. That’s one of the many reasons it’s important to shop around for a loan and a lender.
For a $550,000 mortgage, lenders will look at the following factors in making a lending decision about you.
• Credit score: Your credit score evaluates how risky your behavior with credit is. The higher, the better. If you make your payments on time, every time, you’ll be well on your way to a solid credit score.
• Debt-to-incomeratio: Lenders want to know that you can meet your monthly obligations. If you have lower amounts of debt, you’ll likely be approved for a larger mortgage amount because you can afford the monthly payment.
• Income: You need to make enough steady income to qualify for the loan.
• Down payment: A higher down payment reduces the risk to the lender. They may be able to offer better rates and terms to you if you have a significant down payment. However, even if you have a lower down payment amount, you may still qualify for great terms and rates.
$550,000 Mortgage Breakdown Examples
Below are mortgage examples with different down payments, debt levels, and interest rates that can help you see where you may fall. These numbers were taken from Fannie Mae’s mortgage calculator and include an estimate for taxes and insurance.
$550,000, 30-year mortgage with 20% down payment and 7% interest
• Principal and interest: $3,513
• Taxes and insurance: $1,100
• Total monthly payment: $4,613
$550,000, 30-year mortgage with zero down payment, and PMI, at 7% interest
• Principal and interest: $3,659
• Taxes and insurance: $917
• Mortgage insurance: $504
• Total monthly payment: $5,080
$550,000, 15-year mortgage with 20% down, at 6.5% interest
• Principal and interest: $4,599
• Taxes and insurance: $1,100
• Total monthly payment: $5,699
Pros and Cons of a $550,000 Mortgage
A $550,000 mortgage has some pros and cons you’ll want to consider.
thumb_up
Pros:
• Helps you buy the home you want
• Falls under the conforming loan limit so you can qualify for a conventional loan
• You may be able to put down a low down payment amount
• Allows you to become a homeowner
thumb_down
Cons:
• You may pay a large amount in interest costs
• Possible high monthly payment
• Taxes, insurance, mortgage insurance, and other costs will be higher
• More expensive to maintain a $550,000 home
How Much Will You Need for a Down Payment?
Here’s what you’ll need for a down payment for a roughly $550,000 mortgage on a home costing $567,000.
Loan type
Minimum down payment
Amount for a $550,000 loan
Conventional
3% (first-time homebuyers)
$17,010
Federal Housing Administration (FHA)
3.5%
$19,845
U.S. Department of Veterans Affairs (VA)
0%
$0
U. S. Department of Agriculture (USDA)
0%
$0
Keep in mind, if you’re able to put down 20% ($110,000), you won’t need to include PMI in your monthly mortgage calculation, which will help you afford more home.
It is possible to buy a $550,000 home with no money down, especially if you’re able to take advantage of one of the following loan types. These options have 0% down payment requirements for borrowers who qualify.
0% Down Payment Mortgages
• VA mortgages: For qualified veterans and servicemembers, VA mortgages offer excellent rates along with no down payment requirement. Veterans must obtain a certificate of eligibility (COE), which is based on service and duty status.
• USDA mortgages: If you live in a rural area and make a moderate income, you’ll want to look at a USDA mortgage. This type of mortgage doesn’t require a down payment and the interest rate is similar to what you would get with a conventional loan. There are even some options where the USDA directly services the loan and provides payment assistance to make it more affordable for the borrower.
Can You Buy a $550K Home With a Small Down Payment?
If you’re looking to keep as much cash in your hands as possible, you might be wondering if you can buy a home with a small down payment. The answer is yes, it is possible to buy a $550,000 home with a small down payment.
• Conventional mortgages: Since a $550,000 mortgage falls under the conforming loan limits, you can qualify for conventional financing, which first-time homebuyers can obtain for as little as 3% down. You will need to pay mortgage insurance (PMI), but if you can afford the monthly payment and it allows you to get into a home, it may be worth it to you.
• FHA mortgages: It’s possible to get an FHA mortgage with as little as 3.5% of the purchase price. You also need to pay mortgage insurance on an FHA loan, and it can be expensive. Consider refinancing your mortgage once you have 20% equity in your home to eliminate PMI.
The other options for 0% down payment mortgages mentioned previously, VA loans and USDA loans, are also available here.
Is a $550K Mortgage with No Down Payment a Good Idea?
If you desire to move into a home of your own and can afford the higher monthly payment on a $550,000 mortgage with no down payment, don’t let anything hold you back. A 20% down payment is a great idea, but it can be incredibly hard in reality, even in the most affordable states. If you’re in a strong financial position, but don’t have a down payment, talk to a lender to see if you can make it work.
How to Afford a $550K Mortgage
There are things you can do if you can’t afford a $550,000 mortgage. Take a look at our tips to help you qualify for a mortgage. You can also try the following:
Pay Off Debt
Paying off debt can make it easier to afford a mortgage by improving your debt-to-income (DTI) ratio, which lenders use to determine how much you can borrow. With fewer monthly obligations like credit cards or car loans, more of your income can go toward housing costs, potentially qualifying you for a larger loan or a better interest rate.
Look into First-Time Homebuyer Programs
Look for first-time homebuyer programs in your area. They’re different from state to state and city to city, but in general, most areas have a program that can help with down payment and closing costs assistance, homebuyer education, and rate buydowns.
• Check your credit report. You’ll want to know what is in your report and what your score is. You can fix errors, pay off balances, or find out what negative items are impacting your score.
• Consider opening a credit account. If you’re new to credit, you may need a credit account to build your credit history. Look for secured or student credit cards with low limits. Use it for a few purchases and pay the balance in full every month.
• Automate your payments. If you’re not using autopay or your bank’s bill pay, get it set up. It’s an easy and stress-free way to build your credit history, which is what most of your credit score consists of.
Start Budgeting
Even if you know what you’re doing when it comes to managing your money, going back to the basics of budgeting can help tremendously. You’ll get laser-focused on the areas you can adjust so you can save money and meet your goals.
Alternatives to Conventional Mortgage Loans
Conventional mortgages aren’t the only ways to finance a home. If you’re looking for nontraditional funding sources, you’ll want to look here:
• Private lending: A private lender isn’t associated with a bank and offers their own terms and conditions (usually a higher interest rate and a shorter term). Qualifications may also be more flexible.
• Seller financing: Seller financing is another alternative where the seller acts as the lender. In an arrangement like this, the seller and buyer agree on the details, such as purchase price and payments.
• Rent-to-own: Similar to seller financing, rent-to-own arrangements are made where the buyer agrees to lease the property before they’re able to buy it.
Mortgage Tips
If you want a great mortgage, you’ll need to do a little homework. A home loan help center is a good place to start, but here are some additional tips:
• Shop around: Interest rates and terms vary by lender.
• Compare loan estimates: A loan estimate is a standard form where the lender estimates the fees, interest rates, closing costs, and other terms of the loan you want. By submitting the same information to each lender, you can get a good idea of what each loan would cost during the mortgage preapproval process.
• Choose a lender who communicates well: A lender who can communicate effectively with you will make the process go much smoother. Ask for recommendations from friends and family and interview prospective lenders.
The Takeaway
To get a $550,000 mortgage, you’ll need enough income, an appropriate DTI ratio, and strong credit. Low- and zero-down-payment mortgages can help you qualify for a mortgage of this size faster, but they do come with a large PMI payment added to your monthly mortgage payment.
FAQ
How much does a $550,000 mortgage cost over 10 years?
If you borrow $550,000 at a 7% interest rate, you can expect to pay out a total of $766,316 over the decade of payments.
Can I afford a $500K house on a $100K salary?
If your interest rate is low, you have a large down payment, and you have little or no debt, a $100,000 salary may just be enough to afford a $500,000 house in the eyes of some lenders.
How much is a down payment on a $550,000 house?
A down payment on a $550,000 house depends on the loan type. A 20% down payment would be $110,000, helping you avoid private mortgage insurance. Some loans allow lower down payments, such as 3% to 5%, which would range from $16,500 to $27,500.
Photo credit: iStock/Pekic
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
