How Much Do I Need To Make To Afford A $600K House?

To afford a $600,000 house, you typically need an annual income between $133,200 and $210,000, depending on your down payment, debt obligations, and location.

This calculation is based on the 28/36 rule, where your housing costs shouldn't exceed 28% of your gross monthly income.

With a 20% down payment ($120,000) and current mortgage rates around 6.08%, your monthly payments including principal, interest, taxes, and insurance would be approximately $3,400-$3,700.

The exact amount varies based on your local property taxes, insurance costs, and existing debt obligations.

The 28/36 rule is the gold standard lenders use to determine how much house you can afford.

The first number means your total housing costs (PITI - principal, interest, taxes, insurance) shouldn't exceed 28% of your gross monthly income. The second number means your total debt payments, including housing, shouldn't exceed 36% of your income.

For a $600,000 home with current rates at 6.08%, your PITI payment would range from $3,400 to $3,700 monthly depending on your down payment amount.

To stay within the 28% threshold, you'd need a gross monthly income of at least $12,143 to $13,214, which translates to an annual income of $145,714 to $158,571. However, these figures can vary significantly based on how much you put down upfront, as shown in the breakdown below.

Interest rates dramatically affect how much income you need for a $600K house:

• With 2026 rates hovering around 6.08%, your monthly principal and interest payment on a $480,000 loan (20% down) would be approximately $2,900.
• If rates were 5%, that same payment would drop to about $2,575, reducing your required income by roughly $11,571 annually.

Your credit score plays a crucial role here. Borrowers with scores above 740 typically qualify for the best rates, while those with scores between 620-679 might pay 0.5-1% more, increasing their required income by $15,000-$30,000 annually.

Don't forget about closing costs and other upfront expenses beyond your down payment.

Closing costs typically range from 2-5% of the home's purchase price, meaning you'll need an additional $12,000-$30,000 for a $600K home.

This includes appraisal fees ($400-$600), title insurance ($1,200-$2,000), loan origination fees (0.5-1% of loan amount), and prepaid items like property taxes and homeowner's insurance.

You'll also want 2-6 months of mortgage payments in reserves, which lenders often require for higher-priced homes.

Your location significantly impacts the income needed for a $600K home. Property taxes vary wildly, from 0.3% annually in Hawaii to over 2% in New Jersey.

On a $600K home, that's the difference between $1,800 and $12,000 per year in property taxes alone.

Homeowner's insurance also varies by region, from $800 annually in some areas to $3,000+ in hurricane or wildfire-prone zones.

These differences can change your required income by $10,000-$25,000 annually.

High-cost areas like California or New York might have additional requirements or different lending standards that affect qualification.

Owning a $600K home involves ongoing costs beyond your mortgage payment. Budget approximately 1% of your home's value annually for maintenance and repairs. That's $6,000 per year for a $600K home.

Utilities typically run $200-$400 monthly depending on the home's size and efficiency. HOA fees, if applicable, can range from $100-$500+ monthly.

These ongoing costs mean you should have additional income cushion beyond the minimum qualification requirements.

Financial experts recommend having total housing costs (including maintenance and utilities) stay below 30-35% of your gross income for long-term financial stability.