02/09/2024
While every mortgage lender will have different requirements, you can expect your mortgage lender to have a minimum income level requirement of $170,000-200,000 ๐ต
Because of these standards, many $1,000,000 mortgages are cosigned by two or more individuals. By combining savings, ensuring solid credit for all parties, and maintaining a strong career, a million-dollar mortgage is possible.
๐๐ผDebt Service Ratio Requirements For A Million Dollar Home ๐๐ผ
Banks also consider the debt-to-income ratio, meaning they check your earnings in relation to your current debts to make sure that you have enough income to pay the mortgage bill and your other debts.
GDS Ratio โ To qualify for a million dollar mortgage, your total monthly housing costs must not make up more than 39% of your monthly gross income.
TDS Ratio โ To qualify for a million dollar mortgage, your total monthly housing costs and other debts must not make up more than 44% of your monthly gross income.
Assuming you take out a mortgage for a dollar home, hereโs the maximum you can spend in each category if you have the minimum income of $170,000.
GSD โ $66,300 a year or $5,525 a month.
TDS โ $74,800 a year or $6,233 a month
Minimum Down Payment By House Value
Less than $500,000 โ 5%
$500,000 โ less than $1,000,000 โ Properties worth more than $500,000 require a 5% down payment on the first $500,000; and at least 10% of the remainder.
$1,000,000 or more โ 20%
