Buying a $600,000 home is exciting, but you may have a lot of questions about the process, especially if you’re a first-time homebuyer. How much is the down payment for a $600,000 house, for instance, and what income do you need to afford your mortgage payments? There’s no one-size-fits-all answer, but first-time buyers usually need to put down at least 3% for a conventional mortgage. Making a 20% down payment will help you avoid private mortgage insurance (PMI) and reduce the size of your loan. Here’s a closer look at the financials, so you know what to expect when it comes to purchasing a $600,000 home.
Key Points
• First-time homebuyers can choose from various down payment options for a $600,000 home, ranging from 0% to 20%, or even more.
• Higher down payments usually mean lower monthly mortgage payments and may eliminate the need for private mortgage insurance (PMI).
• An annual pretax income of around $165,000 is recommended for first-time homebuyers with no debt to afford a $600,000 home.
• Practical steps for mortgage application include reviewing finances, comparing options, prequalifying, and taking good care of one’s credit score.
• Available mortgage types include conventional, FHA, VA, and other government loans, each with different down payment requirements.
How Much Income Do I Need to Afford a $600K Home?
When considering how much you need to afford a $600,000 home, the 28/36 rule can help. This guideline suggests spending no more than 28% of your gross income on housing costs and no more than 36% on all your debt payments combined.
Let’s say, for example, that you put a 20% down payment on a $600,000 home. If you chose a 30-year mortgage with a fixed rate of 6.63%, your monthly principal and interest charges on your home loan would be $3,075. Following the 28/36 rule, your gross monthly income should be around $131,800 to afford these bills.
However, your monthly housing costs will be even higher when you account for property taxes and homeowners insurance. Factor in these costs and you’ll likely need an annual income closer to $165,000. The cost of living in the U.S. varies significantly, so factor in costs in your specific location when making this calculation. You may get by with a lower income in one of the best affordable places in the U.S.
If you make a down payment of less than 20%, you’ll have higher monthly housing costs. Along with paying off a larger mortgage, you’ll have to pay for private mortgage insurance (PMI) for a certain amount of time, which typically costs about 0.58% to 1.85% of the loan amount.
How Much Is the Down Payment for a $600K House?
The down payment for a $600,000 house varies depending on the type of mortgage loan you choose. Options include conventional mortgages, FHA loans (backed by the Federal Housing Administration), and others. Take a look at how the loans differ:
| Loan Type | Minimum Down Payment | Amount on the $600,000 home |
|---|---|---|
| Conventional home loan with PMI (lowest rate is typically for first-time homebuyers) | 3% -5% | $18,000 – $30,000 |
| Conventional home loan with no PMI | 20% | $120,000 |
| FHA loan (for credit score of 580 or higher) | 3.5% | $21,000* |
| FHA loan (for credit score of 500 – 579) | 10% | $60,000* |
| VA loan (backed by the U.S. Department of Veterans Affairs) | 0% | $0 |
| United States Department of Agriculture (USDA) loan | 0% | $0 |
*In much of the U.S., the FHA loan limit for a single-family home in 2025 is $524,225. The limit for a two-family home is $671,200. Some markets have higher limits; consult a lender.
What Are the Down Payment Options for a Home Worth $600K?
Conventional home loans are the most common type of mortgage, and you can find them from banks, credit unions, and online lenders. The minimum down payment requirement can be quite low at 3% (for first-time buyers) or 5%, but you’ll need to put down at least 20% to avoid PMI charges.
First-time homebuyers may also consider FHA loans. These loans can be appealing to borrowers with weak credit who might have trouble qualifying for a conventional mortgage. You’ll need to put down 3.5% or 10%, depending on your credit score.
VA and USDA loans offer 0% down payment options. VA loans are available to eligible veterans, servicemembers, reservists, and surviving spouses, while USDA loans are designed for low- and moderate-income individuals who are buying a home in a rural area.
If you decide to finance a home at a much higher price point someday, you might also explore a jumbo loan, which offers up to $3 million.
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What Does the Monthly Mortgage Payment Look Like for a $600K Home?
Your monthly mortgage payment on a $600,000 home depends on your down payment amount and interest rate. Here’s what you could expect your monthly principal plus interest payments to look like with different down payment amounts based on current rates:
| Down payment percentage | Down payment amount | Monthly payments on 30-year mortgage with 6.63% rate | Monthly payments on 15-year mortgage with 5.63% rate |
|---|---|---|---|
| 5% | $30,000 | $3,651 | $4,697 |
| 10% | $60,000 | $3,459 | $4,450 |
| 15% | $90,000 | $3,267 | $4,202 |
| 20% | $120,000 | $3,075 | $3,955 |
If you choose an adjustable-rate mortgage when buying your first home, your payments will fluctuate over time. ARMs often start out with lower interest rates than fixed-rate mortgages, but they can increase over time. Some have a 5/1 structure, meaning you pay a fixed rate for five years, after which the rate can be adjusted up or down.
What to Do Before You Apply for a $600K Mortgage
Before applying for a $600,000 mortgage, take these steps to boost your chances of approval.
• Work on your credit score: Your credit score plays a key role in the mortgage approval process, as well as the interest rate you get. Paying down debts and keeping your credit utilization low can help increase your score. It’s also worth checking your credit report for errors.
• Pay off debt: Paying down your debts can lower your debt-to-income ratio, which is an important factor when applying for a mortgage. Having more room in your budget will make it easier to qualify for a $600,000 home loan. You may also consider reducing your cost of living.
• Avoid taking out new loans: Taking out a loan or opening a new credit card can incur a hard credit inquiry, which can affect your credit score. This activity could be a red flag for lenders.
• Save for your down payment: As you prepare to apply, keep saving up for your down payment and closing costs. The higher your down payment, the smaller your loan and monthly mortgage costs. You can also explore down payment assistance programs.
Should I Get Preapproved Before Applying for a Mortgage?
Getting preapproved is a smart step in the home-buying process. When you apply for preapproval, lenders will review your finances in detail and make a conditional offer for a mortgage. That way, you can see if you qualify as a first-time homebuyer and for what size loan.
This will give you a clear picture of how much you can afford based on your credit, income and other factors. Providing a preapproval letter with your offer can show sellers that you’re a serious, qualified buyer.
Although the mortgage preapproval process doesn’t guarantee your mortgage just yet, it does show you’re likely to get your loan amount, as long as your circumstances stay the same.
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How to Get a $600K Mortgage
A $600,000 mortgage is a relatively large amount, as the median home price in the U.S. is around $415,000. With the right preparation, though, you may get approved for a mortgage of this size. These are important steps to take.
1. Review your finances: Lenders look closely at your credit, income, and debt-to-income ratio when you apply for a mortgage. (Your DTI is your total monthly debts divided by your gross monthly income.)
2. Compare mortgage options: Most homebuyers opt for a conventional mortgage, but you can also explore FHA loans, VA loans, and USDA loans to see if any of these options are right for you.
3. Prequalify with multiple lenders: Getting prequalified is a quick process that will give you a sense of whether you can qualify for a $600,000 mortgage, as well as your interest rate. The Consumer Financial Protection Bureau recommends comparing offers from at least three lenders.
4. Apply for preapproval: Preapproval goes a step beyond prequalification, as lenders collect documentation and review your finances in detail. You could get preapproved with multiple lenders or one lender, depending on your timeline.
5. Submit your full mortgage application: Once a seller has accepted your offer on a home, you can finalize your mortgage application. You’ll provide any outstanding documentation, such as bank statements and W-2s. The lender will order an appraisal on your home and work on underwriting your loan.
The Takeaway
Before making the leap into homeownership, make sure you understand how much of a down payment and income you’ll need to afford your monthly bills. Buying a $600,000 home is a big commitment, so review your finances as you prepare for this milestone.
If you’re ready to take the next step, SoFi offers competitive mortgage rates and helpful tools to guide you through the homebuying process. Learn more about your options with SoFi.
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.
FAQ
How much should I make to afford a $600,000 house?
To cover your costs on a $600,000 house, you’ll probably need an annual pretax income of around $165,000, although each homebuyer’s costs are different. The amount of income you need to afford a $600,000 house depends on your monthly mortgage payments, which vary based on your down payment amount, interest rate, and property taxes. Experts generally recommend spending no more than 28% of your gross monthly income on housing costs.
What credit score is needed to buy a $600,000 house?
You typically need a credit score of at least 620 to qualify for a conventional mortgage, but a score of 700 or higher will help you land a better interest rate. Borrowers with lower credit scores could consider applying with a cosigner or pursuing an FHA loan. With an FHA loan, qualified buyers could have a credit score as low as 500.
How much is a $600K mortgage per month?
The monthly payments on a $600,000 mortgage will depend on your interest rate and loan term. Assuming a 30-year term, the monthly principal and interest costs would range from around $3,600 to $4,000 depending on rate and term.
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*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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†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.
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.
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