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For many homebuyers, especially those purchasing for the first time, the prospect of coughing up a five-digit down payment is the most intimidating part of the process. But the good news is, these days, it’s possible to put down far less than 20%. Depending on the loan type you qualify for, you may be able to put down as little as 3%, which translates to $6,000 for a $200,000 house.

Here’s what you need to know about the income requirements, down payment options, and other important pieces of the financial puzzle if you’re considering purchasing a home for $200,000 or so.

How Much Income Do I Need to Afford a $200K Home?

Among other factors, like your credit score and your available down payment, mortgage lenders do consider your income when determining what you can qualify for as a first-time buyer. But instead of enforcing one specific cut-off point for household income, most lenders use a more complicated algorithm to decide whether or not a would-be borrower can qualify.

There is, however, a quick rule of thumb that can help first-time homebuyers figure out an approximate income ballpark that will ensure you can make your mortgage payments. A long-standing financial guideline suggests you should spend no more than 30% of your gross income on your housing payment each month. Although rising costs mean this metric is harder to meet in some American cities and states than others, it’s still a good place to start.

So, consider your $200,000 potential home purchase. It’s not exactly a jumbo loan, but it still comes with costs. Using a mortgage calculator, you can get a rough idea of how much your monthly mortgage payment might be, depending on your interest rate and available down payment.

For a $200,000 home with a 3% down payment ($6,000), with an interest rate of 7%, a 30-year fixed-rate mortgage would come with a payment of about $1,300. But you’ll also need to factor homeowners insurance, property taxes, and — because you put down less than 20% as a down payment — private mortgage insurance. This means your housing costs would be in the neighborhood of $1,600 per month. In order to meet the 30% guideline, that would mean you’d need to earn about $4,800 per month, or $57,600 per year, to comfortably meet your housing payment responsibilities.

However, your lender may require a higher level of income to qualify you for the loan, depending on your other qualifying factors.

How Much is the Down Payment for a $200K House?

If you choose to put down the 20% that will keep you from having to pay private mortgage insurance, the down payment for a $200,000 house will come out to $40,000.

However, conventional loans allow well-qualified borrowers to put down as little as 3%, which is only $6,000 on a $200,000 home. You could also choose to put down an intermediary amount, such as 5% ($10,000) or 10% ($20,000).

What Are the Down Payment Options for a Home Worth $200K?

The specific down payment options that are available to you will depend on your lender, your qualifying factors (such as credit history and income), and what type of mortgage loan you opt for.

For instance, conventional loans allow well-qualified first-time homebuyers to put down just 3%, while down payments for FHA loans, backed by the Federal Housing Administration, bottom out at 3.5% for borrowers with a credit score of at least 580 (or 10% for those whose scores are as low as 500). If you obtain a VA loan (backed by the U.S. Department of Veterans Affairs), you might be able to put down nothing at all.

What Does the Monthly Mortgage Payment Look Like for a $200K Home?

As you’re thinking about how much is the down payment for a $200K house, you’ll also need to consider how the mortgage payments will fit into your budget. As noted, the best way to understand what you stand to pay monthly on a home loan is to use a mortgage calculator. The payment calculated above — $1,300 — assumes a low down payment (3%) and an interest rate of 7% before taxes, insurance, and private mortgage insurance. If, however, you put down a higher amount up front — say, 10% or $10,000 — and had an interest rate of 5%, your loan payment would go down to around $1,000 per month (again, before property insurance, homeowners insurance, and mortgage insurance).

What to Do Before You Apply for a $200K Mortgage

If you’re considering applying for a $200,000 mortgage — or any mortgage, for that matter — it’s a good idea to pull your credit history and ensure that everything on your report is accurate to your knowledge. If you have high revolving debt balances or a relatively low credit score, it may also be worthwhile to work on improving your credit score before you apply so as to attain the lowest available interest rates.

At the big-picture level, deciding where you want to buy a house is perhaps the most important step toward ensuring you’re happy in your new home. Choosing the right locale can really help lower your cost of living. While everyone knows housing prices in big cities have skyrocketed over the last decade or so, there are affordable places to live in the U.S. if you know where to look. Moving to a new city or state is a big project, but doing so can lower the average monthly expense per person by hundreds of dollars.

Finally, if the down payment is the biggest hurdle between you and your homeownership dream, be sure to check out down payment assistance programs that may help bridge the gap. Grants may be available at the state, federal, and local government levels, as well as low-interest loans.

Should I Get Preapproved Before Applying for a Mortgage?

The mortgage preapproval process helps you understand how much house you’re able to afford given your current financial situation — and also shows sellers that you’re motivated and serious. In general, getting preapproved before seriously hitting the housing market is a good idea, but keep in mind that your preapproval does have an expiration date — normally between 60 and 90 days after you go through the process.

How to Get a $200K Mortgage

From banks to credit unions to digital-first financial institutions, there are many places to get a $200,000 mortgage, whether you’re buying your first home or hoping to get better terms and save money as part of a mortgage refinance. These days, much of the application process can be done entirely online. You can prequalify and get a general sense of your borrowing power by answering a few simple questions. Seeking a lender’s preapproval requires submitting more information and financial documentation.

The Takeaway

The down payment for a $200,000 house can be as low as 3% ($6,000) or as high as 20% ($40,000) or even higher, depending on your financial situation and goals. Many homebuyers, especially first-timers, put down less than 20% on the road to their dream home.

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 $200,000 house?

Using the 30% rule of thumb (your housing costs should not exceed 30% of your gross income) and assuming a housing payment of about $1,600 per month (including property taxes, private mortgage insurance, and homeowners insurance), you should make about $4,800 per month, or $57,600 per year, to comfortably afford a $200,000 house. However, your mortgage lender may have different income requirements depending on your other qualifying factors.

What credit score is needed to buy a $200,000 house?

While there’s no specific credit score floor for purchasing a home of any price, the higher your score, the better your loan terms stand to be — including your interest rate. With an FHA loan, which is designed specifically for first-time buyers who may be facing financial hurdles on their journey to homeownership, you may qualify with a score as low as 500 if you can come up with a 10% down payment. Many lenders who offer conventional loans require a minimum credit score of 620.

How much is a $200K mortgage per month?

Your monthly mortgage payment depends on many factors, including your interest rate and loan term (how long you have to pay it off). For a 30-year fixed-interest loan at a rate of 7%, with a down payment of 3%, your monthly mortgage payment on a $200,000 home would be about $1,300 before other expenses such as property taxes, insurance, and private mortgage insurance.

photo credit: iStock/Milan Markovic

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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.

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.

SOHL-Q225-141

The money you’ll need for a down payment on a $100,000 home could be $0 or $20,000 – or more. The answer is specific to you, and it comes down to two factors: One, the type of home mortgage loan you opt for and other personal preferences, and two, your qualifications as a borrower.

If you’re ready to buy a $100K house, you’ll want to know where you fit in the equation when it comes to your down payment. That’s where we come in. This is a comprehensive guide with real examples and numbers to help you understand how much down payment you’ll need for a home of your own. We’ll cover how much income you should have, how different factors affect your down payment, and the process of getting a mortgage.

How Much Income Do I Need to Afford a $100K Home?

If you don’t have any debt (no auto loan, student loan, or credit-card debt, for example), you need a minimum of $2,650 per month, or $31,800 per year to afford a $100K home loan. That’s assuming a 7.00% interest rate and no down payment. If you have $500 in debt payments every month, the income requirement increases to $4,000 per month, or $48,000 per year.

Keep in mind that qualifying for a mortgage depends on more than your income. There are several factors your lender will consider to qualify you for a mortgage. It’s always best to find out exactly what a lender requires, but in general, these tend to be:

Credit score: For any lender to approve your mortgage, you’ll need a credit score high enough for the loan you want. If you’re looking at an FHA loan, backed by the Federal Housing Administration, and have a 10% down payment, you could qualify with a credit score as low as 500. Other government-backed loans from the USDA and VA have no minimum credit score requirement, while a conventional mortgage often requires a credit score of 620 or above.

Income: You need to make enough income to cover your mortgage and your monthly obligations.

Debt: Your monthly debt obligations are factored into the equation. Any monthly debt you have decreases the monthly mortgage payment you qualify for. Lenders also look for your debt-to-income (DTI) ratio – all of your debt added together divided by your gross income – to be no more than 36% of your income.

Type of loan: The type of mortgage loan affects how much income you’ll need to afford a $100,000 mortgage. This is because different types of loans have different interest rates and down payment requirements.

Interest rate: The interest rate environment affects home affordability and changes how much income you need to afford a $100,000 mortgage. Remember that if rates drop after you purchase, you can always consider a mortgage refinance.

Property details: Property details matter – such as location and age – because it will affect your affordability. The age and build details of the house affect homeowners insurance and property taxes. This changes how much income you need.

These are examples of how much income you need to afford a $100,000 home. There are various loan terms, interest rates, down payments, and debt loads.

How Much Is the Down Payment for a $100K House?

The down payment needed for a $100,000 house varies by loan type. In some cases, such as with a VA loan (backed by the U.S. Department of Veterans Affairs) or a United States Department of Agriculture (USDA) loan, you may be able to avoid a down payment altogether. In most cases, if you’re a first-time homebuyer or haven’t owned a primary residence in the last three years, you’ll need between 3% and 3.5% ($3,000 to $3,500) for the down payment on a $100,000 home.

Here’s a breakdown of the minimum down payment by loan type for a first-time buyer. (A $100,000 home is within the conforming loan limits and is not considered a jumbo loan.) Keep in mind, putting down less than 20% requires you to purchase some type of mortgage insurance, the costs of which will be included in your loan.

What Are the Down Payment Options for a Home Worth $100K?

First of all, congratulations if you have found a home valued at $100,000. Given that the average U.S. home price is much higher than that, you must be shopping in one of the best affordable places in the U.S.!

Purchasing a home for $100,000 will help keep your overall cost of living in line. Your down payment options on a $100K mortgage depend on your loan type. As mentioned above, there are some options where you don’t have to put any money down, and others where you need to put down at least 3%. Here are some common down payment options for a home worth $100K:

•   0% = $0

•   3% = $3,000

•   3.5% = $3,500

•   5% = $5,000

•   20% = $20,000

If you’re worried about coming up with a down payment, there are down payment assistance programs that might be able to help. You need to meet the program requirements, which are often geared toward first-time homebuyers located in a specific area who need financial assistance. The property itself also must meet certain conditions outlined by the program.

Recommended: The Cost of Living in the U.S.

What Does the Monthly Mortgage Payment Look Like for a $100K Home?

The monthly mortgage payment for a $100,000 home works out to roughly $665 for principal and interest. When you add in taxes, homeowners insurance, and mortgage insurance, you’ll be closer to $925 per month. These numbers assume a 7.00% interest rate on a 30-year loan with property taxes of $1,250 and a homeowners insurance premium of $750. These numbers will be different, of course, depending on your area, property, and personal qualification factors.

The following is a sample table of the different monthly mortgage payments you could see on a $100K mortgage with varying down payment amounts, interest rates, and loan terms.

As you can see, there’s a wide variance in monthly payments for a $100,000 mortgage. Shorter terms, higher interest rates, and lower down payments result in higher monthly payments — although with a shorter term, borrowers will pay less interest over the life of the loan. Longer loan terms, lower interest rates, and higher down payments result in lower monthly payments.

What to Do Before You Apply for a Mortgage on a $100K Home

If you’re not quite ready to apply for a mortgage on a property valued at $100,000, there are some steps you can take in the meantime to help you qualify as a first-time homebuyer or even as a repeat homebuyer.

•   Talk to a lender. Even if you’re not ready to apply for a $100,000 mortgage, it’s better to get your questions answered sooner rather than later. A good lender can explain your options and help get you on the path to mortgage qualification.

•   Set your goals. Write down what you want and how you’re going to get it. Put a plan in place for qualifying for a mortgage. You might consider paying down debt or saving for a down payment.

•   Check your credit. See where you’re at and what you need to do to improve your credit score. A good credit score will get you the best interest rates and save you money for years.

•   Shop around for a loan Look at different lenders with different loan options. Get loan estimates and be sure you’re comparing apples to apples. Look at the loan’s annual percentage rate (APR), which includes fees.

Recommended: Average Monthly Expenses for One Person

Should I Get Preapproved Before Applying for a Mortgage?

Getting preapproved for a mortgage is a great strategy. Mortgage preapproval is a strong indication that you’ll be approved for the loan. It can help you make decisions about what loan will be best for you and puts you in a better position to negotiate with sellers. Going through the mortgage preapproval process helps your true financial picture become clear.

How to Get a $100K Mortgage

Getting a mortgage on a $100,000 home is a simple process if you’re qualified, but you might not be familiar with it if you’re buying your first home. According to the Consumer Financial Protection Bureau, the process looks like this:

Prepare to shop for a loan

This step involves getting your finances in order. You’ll assess your spending, figure out how much you want to spend, how much you can save for a down payment, and pull all your documents together (tax return, bank statement, etc.)

Explore loan choices

You’ll learn about the different types of loans, loan costs, and shop around for a lender.

Choose a loan offer

Request loan estimates and preapprovals from several different lenders, look closely for loan details that matter most to you, and choose a lender you can trust and that can offer you competitive pricing.

Close on the new loan

Once you’ve selected a loan officer, you’ll send over the contract to them to get the mortgage process started. You’ll submit required documents, schedule a home inspection and other due diligence items, obtain title and homeowners insurance, and review documents before closing.

The Takeaway

The down payment for a mortgage on a home valued at $100,000 ranges from $0 to $20,000, though you could put down even more. The factors that affect how much you need for a down payment depend on your loan type and personal preference and qualifications. If you go with a VA loan, for example, you might not need a down payment at all. If you have a credit score above 580 and you opt for an FHA loan, your down payment will be a minimum of 3.5%. And a qualified first-time homebuyer can get a conventional mortgage from some lenders with a downpayment as low as 3%.

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 $100,000 house?

How much you need to make to afford a $100,000 house starts at about $32,000 per year. This assumes you have no debt and can secure a 7.00% interest rate on your mortgage. Your debt and interest rate are some of the biggest factors determining how much you need to make to afford a $100,000 home.

What credit score is needed to buy a $100,000 house?

The credit score needed to buy a $100,000 house depends on the type of mortgage you get. The credit score requirements for an FHA loan is generally 580, unless you’re able to make a down payment of 10% or more, in which case, you can have a credit score as low as 500. For a conventional loan, it’s 620. For a USDA or VA loan, there’s no minimum credit score requirement for the program, though a lender may impose one.

How much is a $100K mortgage per month?

A $100,000 mortgage with a 7.00% interest rate and a 30-year term is roughly $924 per month. That amount includes $665 in principal and interest, $167 for taxes and insurance, and $92 for mortgage insurance.

Photo credit: iStock/Mariia Vitkovska

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.

SOHL-Q225-142

The median home sales price in the U.S. was nearly $417,000 in the first quarter of 2025, so it’s not uncommon for first-time homebuyers to find themselves in this price range. The answer to the question “how much down payment do I need for a $400,000 house?” can vary based on the type of home loan and your creditworthiness as a borrower.

Here’s a closer look at how first-time buyers can afford a $400K house, from the down payment to mortgage preapproval and what you can expect for monthly mortgage payments.

How Much Income Do I Need to Afford a $400K Home?

The income you’ll need to afford a $400,000 home goes beyond saving up for a down payment. Rather, it’s about your ability to afford the monthly mortgage payment. How much you’ll pay each month depends on whether you pay private mortgage insurance (PMI), the interest rate, and other factors.

Many financial experts suggest spending no more than 30% of your gross monthly income on housing costs. Using this budgeting rule, let’s crunch the numbers with a mortgage payment calculator on what income you’ll need to afford a $400,000 home purchase without overextending your finances.

For example, let’s say you made a 3% down payment of $12,000 on a $400,000 house, which could be possible when buying your first home, depending on your qualifications. Let’s also assume that you take out a 30-year home loan at a 7.00% interest rate. That would amount to about $2,580 for a monthly mortgage payment. To reasonably afford this, you’d need to earn $8,600 per month. In other words, that’s an annual income of around $103,000. This assumes you don’t have any debts beyond your home loan payment.

Also note that this estimate does not include PMI, property taxes, and other costs of homeownership. When crunching the same numbers with a mortgage calculator with taxes and insurance, the monthly payment comes closer to $3,100. This would mean earning $10,300 a month ($123,600 per year) to comfortably afford payments on a $400,000 home.

Calculating home affordability also involves factoring in your existing debts, such as student loans and auto loans, plus other cost of living expenses.

Recommended: Average Monthly Expenses for One Person

How Much Is the Down Payment for a $400K House?

Conventional wisdom suggests putting a 20% down payment on a home. Though this helps avoid paying PMI, you may be eligible to put as little as 3% down if you qualify as a first-time homebuyer. Considering these as the two ends of the spectrum, a down payment for a $400,000 house could range from $12,000 to $80,000.

Homebuyers have other upfront expenses to account for when determining how much house they can afford. Notably, closing costs typically add up to 2% to 5% of a home purchase price. There may also be home renovation and moving costs to include in your home-buying budget.

What Are the Down Payment Options for a Home Worth $400K?

How much down payment do you need for a $400,000 house? Here are your potential down payment options depending on the type of mortgage loan you apply for.

•   With any mortgage, putting 20% down means not having to pay PMI, which costs 0.5%-1.5% of the home loan amount each year. A 20% down payment is most common with a conventional mortgage, and would amount to $80,000 for a $400,000 home.

•   Qualified first-time borrowers could secure a conventional mortgage with a down payment of as little as 3%, amounting to $12,000 in this example. Other buyers may need to fork out 5%, or $20,000, to qualify. Down payment assistance programs can help some first-time buyers, veterans, and other eligible applicants afford a down payment on a home.

•   With a government-backed FHA loan, first-time homebuyers could make a down payment of just 3.5%, or $14,000 for a $400,000 house. Borrowers need a credit score of 580 or higher to qualify for this minimum down payment. (You might also get an FHA loan with a score of 500 to 579, but a 10% down payment would be necessary.)

•   Other government-backed loans, including VA loans and USDA loans, may not require any down payment to qualify, though putting some money down can help build equity and secure a more competitive rate.

Recommended: Best Affordable Places in the U.S.

What Does the Monthly Mortgage Payment Look Like for a $400K Home?

To recap, your monthly mortgage payment is determined by several factors. The interest rate you qualify for is based on your credit score, debt-to-income (DTI) ratio, and other personal financial information. How much money you put down and the length of the loan term — typically 15 or 30 years — also has an impact on the monthly mortgage payment for a $400,000 home.

If you put $12,000 toward a $400,000 home with a 30-year fixed-rate mortgage at 7.00%, you can expect a monthly payment of $2,580. Upping the down payment to 5% or 10%, would cut the monthly payment to around $2,528 and $2,395, respectively. On the other hand, locking in a better interest rate, say 6.50%, would lower a monthly payment from $2,580 to $2,452, using the first example with a 3% down payment.

Your mortgage payments will go toward the loan interest and principal, with a greater share going toward interest during the initial part of the loan term. Making additional payments on the loan principal each month is one strategy for saving on interest and shortening repayment.

What to Do Before You Apply for a $400K Mortgage

Buying a home is often the largest purchase in one’s lifetime and home expenses are a major contributor to the cost of living in the U.S. If time allows, there are some steps you can take to improve your borrower qualifications and secure more favorable loan terms.

Paying off existing debts, especially high-interest debts, can reduce your DTI ratio and the perceived risk for lenders to issue you a mortgage. Having a DTI ratio of 36% or less is preferred, though borrowers may qualify with a higher DTI ratio. Building up more savings toward a down payment and closing costs can also enhance your chances of approval, plus reduce stress on you and your finances.

Should I Get Preapproved Before Applying for a Mortgage?

Home buying can be competitive, so it’s helpful to demonstrate that you’re a serious buyer by getting preapproved before making an offer. The mortgage preapproval process involves submitting documentation about your income and assets. Lenders will evaluate your credit and financial history, too.

If you get preapproved, lenders will provide a letter listing the specific loan amount and interest rate you’re preapproved for. This is not a commitment, and it’s typically only valid for up to 90 days.

How to Get a $400K Mortgage

Applying for a mortgage is a fairly straightforward process that can be done online or in person. The applications require many of the same materials you’d have already gathered for mortgage preapproval, plus information on the property you’re intending to purchase.

It’s important to compare lender offers and find the best mortgage terms before applying. As noted above, a slight change in the interest rate can significantly lower monthly payments and the total interest paid over the life of the loan. Remember, though, that if you aren’t overjoyed with your original interest rate, a mortgage refinance can be an option down the road.

The Takeaway

How much down payment do you need for a $400,000 house? You could put as little as $12,000, or up to $80,000, toward a down payment depending on the type of home loan, your creditworthiness, and whether you’re a first-time buyer. It’s also possible to get a home loan with zero money down.

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 $400,000 house?

If you follow the 30% rule, which says your housing costs shouldn’t exceed 30% of your gross income, you should make at least $103,000 a year to afford a $400,000 house, assuming a 3% down payment and 7% interest rate on a 30-year fixed rate mortgage. Borrowers with more saved for a down payment could potentially afford a $400,000 house with less income. Those with other debts will need a greater income.

What credit score is needed to buy a $400,000 house?

Credit score requirements to buy a $400,000 house depend on the type of home loan. FHA loans require a minimum credit score of 500, whereas borrowers usually need a 620 credit score to qualify for a conventional mortgage.

How much is a $400K mortgage per month?

The monthly payment on a $400K mortgage depends on the interest rate you qualify for and loan term. A low interest rate of 5.50% could mean a payment of about $2,300 per month, while a higher interest rate of 7.5% could see monthly payments of $2,800. The added cost of homeowners insurance, property taxes, and mortgage insurance could further increase the monthly payment.

Photo credit: iStock/DragonImages

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.

SOHL-Q225-143

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.

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:

*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.

Recommended: What Is a Mortgage Refinance?

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:

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.

Recommended: Average Monthly Expenses for One Person

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.

Photo credit: iStock/monkeybusinessimages

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.

SOHL-Q225-144

We often hear that you should put 20% down when purchasing a home. That means the down payment for a $250,000 house would be $50,000. But not everyone has that much cash lying around.

Luckily, nowadays you can get a conventional mortgage by putting significantly less money down. In fact, some first-time homebuyers can buy a house with as little as 3% down. For a $250,000 home, that’s only a $7,500 down payment. And if you qualify for a VA loan (backed by the U.S. Department of Veterans Affairs), you may be able to purchase a $250,000 house with 0% down. Even better: Anyone who hasn’t owned a primary residence in the last three years is usually considered a first-time buyer.

Below, we’ll explore how to calculate the down payment on a $250,000 house, plus what you should budget for monthly mortgage payments and how to get approved for the mortgage.

How Much Income Do I Need to Afford a $250K Home?

On average, you’ll need to earn about $76,000 before taxes to afford a $250,000 home, but this can vary significantly. Why? How much income you need for a $250K house depends on several factors, including your other debts, your credit score, the length of the home loan, property taxes, homeowners insurance costs, and other fees:

•   Other debts: Lenders don’t look purely at your income when deciding to approve you for a mortgage; rather, they look at your income in relation to your debts. Typically, you need a debt-to-income ratio of 36% or less to qualify for a mortgage, but this can vary by lender. If you have significant debts (credit cards, student loans, auto loans, etc.), you’ll need to make more money to ensure you meet a lender’s DTI requirements.

•   Your credit score: Your credit score impacts your interest rate. A lower credit score means a higher interest rate — and a higher monthly payment to budget for.

•   The length of the loan: A 30-year loan term means your mortgage is spread out over 360 payments, which makes them smaller and more manageable on a lower income. However, if you get a 15-year mortgage, your monthly payments will be considerably larger, meaning you’ll need a higher income to afford them.

•   Property taxes: In addition to paying back your loan, you’ll also have to pay property taxes every year. Make sure you factor in these taxes when calculating how much money you need to make to afford a $250,000 home.

•   Homeowners insurance costs: You aren’t just budgeting for the cost of the house. You also need to think about the cost of living in general. You’ll need to leave room in your budget for the homeowners insurance you’ll have to carry, for example. The cost of homeowners insurance depends on factors such as where you live and the size of your home.

•   Other fees: Some lenders roll certain loan fees (such as appraisal fees and closing costs) into the mortgage. If you opt for a lender that does so, it can increase your monthly loan payment.

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How Much Is the Down Payment for a $250K Home?

The down payment on a $250,000 home depends on the type of mortgage loan you get. Traditionally, experts recommend putting 20% down ($50,000 for a $250,000 home); this is ideal for a conventional mortgage, as putting 20% down means you don’t need to pay for private mortgage insurance (PMI).

However, not everyone can afford to put 20% down. Here’s a look at various mortgage types and the minimum down payment on a $250,000 home for those who qualify as a first-time homebuyer:

•   Conventional mortgage: As low as 3% to 5% ($7,500 to $12,500)

•   FHA (Federal Housing Administration) loan: As low as 3.5% ($8,750) for buyers who meet credit score requirements

•   VA loan: As low as 0% for qualifying borrowers and homes

What Are the Down Payment Options for a Home Worth $250K?

The down payment options for a $250,000 home are varied, from as little as 0% down through a VA loan to as much as 100% (i.e., paying cash for the house). Which option you choose depends on how much you have saved up and the type of home loan you’re applying for.

Here are a few things to keep in mind:

•   FHA loans: You can qualify for a government-backed FHA loan with as little as 3.5% down. However, the credit score needed to buy a house with a mortgage through the Federal Housing Administration is 580. You may be able to qualify with a lower credit score, but you have to put at least 10% down (that’s $25,000 for a $250,000 home).

•   PMI: If you don’t want to pay private mortgage insurance on your conventional mortgage, you need to put at least 20% down ($50,000). That said, you might be able to qualify with as little as 3% down, although in that case PMI will be part of the deal.

•   Monthly payments: The larger your down payment on a $250,000 home, the smaller your monthly payment will be.

What Does the Monthly Mortgage Payment Look Like for a $250K Home?

There’s no one single monthly mortgage payment you should expect for a $250,000 home, as it depends on several key factors, such as the interest rate, how much money you put down, property taxes and homeowners insurance (which are often added to the monthly mortgage bill), and the loan term.

The table below shows some estimated payments based on how much is the down payment for a $250,000 house, the length of the loan, and the interest rate — but these are examples only. You can use a mortgage calculator to estimate the more exact monthly mortgage payments for a $250,000 home based on your unique situation. Remember that if you purchase at one interest rate, you can always do a mortgage refinance if rates drop significantly.

What to Do Before You Apply for a $250K Mortgage?

Before applying for a $250,000 mortgage, focus on getting your finances in order. Here are a few ways to improve your approval odds and keep the monthly payment affordable:

•   Pay down existing debts: Reducing other debts can help boost your credit score and lower your DTI ratio. These both improve your approval odds and make it easier to afford a monthly mortgage payment.

•   Save money: Open a high-yield savings account and start saving up for a down payment. The more you save for a down payment, the lower your monthly mortgage payment will be.

•   Get preapproved: When you’re ready to start shopping, seek preapproval for your max budget (such as $250,000). Going through this process will give you a pretty solid idea of what you can afford.

Recommended: Average Monthly Expenses for One Person

Should I Get Preapproved Before Applying for a Mortgage?

Getting preapproved is helpful in many ways:

•   Completing the mortgage preapproval process will let you know whether you’re likely to be approved for the cost of the house you want to purchase. If $250,000 is the top of your budget, see if a lender will be willing to lend you that amount (with the down payment you’re willing to pay).

•   Mortgage preapprovals signal to sellers that your offer is legitimate and can help you get your offer accepted, particularly if the housing market is competitive.

Just remember that preapproval is different from prequalification. A preapproval involves a hard credit check, so only get a preapproval if you’re serious about buying and plan to make an offer soon. A lender can tell you how long a preapproval is good for before you apply.

How to Get a $250K Mortgage

Here’s how to get a mortgage for a home priced around $250,000. In fact, these basic guidelines hold true whether you need a modest mortgage or a jumbo loan:

1.    Figure out your finances: Make sure you have enough money for the down payment, and look into down payment assistance programs if necessary. Focus on improving your credit score before searching for lenders.

2.    Research lenders: Compare several lenders (both online and in person) to see which has the lowest rates and fees.

3.    Apply for preapproval: You can likely do this over the phone or online. You’ll need to upload a fair amount of documentation, including pay stubs, tax returns, proof of identification, bank statements, and more.

The Takeaway

The down payment for a $250,000 house depends on the type of mortgage you’re applying for — and the monthly mortgage payment you’re comfortable making. But some first-time homebuyers can get approved for as little as 3% down (that’s $7,500 on a $250,000 house). Finding a mortgage lender with a competitive interest rate and low fees can also keep your costs down.

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 $250,000 house?

The amount of money you should make to afford a $250,000 house depends on several factors, including your other debts, your credit score, the cost of homeowners insurance and property taxes, and the size of your down payment. That said, a salary of around $76,000 a year will help you afford a $250,000 mortgage.

What credit score is needed to buy a $250,000 house?

The credit score needed to buy a house worth $250,000 depends on the type of mortgage you are applying for. Conventional mortgages often require a credit score of 620 or higher. You can qualify for an FHA loan with a score as low as 500 if you put 10% down. VA loans require a minimum credit score of 620. USDA loans usually require a credit score of 640.

How much is a $250K mortgage per month?

The monthly mortgage cost for a $250,000 home loan can vary greatly, depending on the size of the down payment, the interest rate, the length of the loan term, property taxes, and homeowners insurance costs. Budget anywhere from $1,000 to $2,000 a month, though in some cases, it could be even higher or lower.

Photo credit: iStock/Valentyna Yeltsova

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.

SOHL-Q225-145