You may need to make roughly $281,000 to $340,000 a year to afford a $1 million home under the examples used here, depending largely on your down payment.
With 10% down and a 30-year fixed rate of 7.03%, the estimated housing payment is about $7,589 per month. Using a 28% housing-cost benchmark, that points to annual gross income of about $325,000 before accounting for other monthly debts.
The 7.03% rate matches Freddie Mac's Primary Mortgage Market Survey average for a 30-year fixed mortgage as of Sept. 24, 2026. It is a national market benchmark, not a rate quote. Your actual rate can differ based on credit, loan type, down payment, points and property characteristics.
You can also model your own assumptions with an affordability calculator or compare how much house a $300,000 salary can support.
$1 Million House Income Basics
| Item |
Example |
| Home price |
$1,000,000 |
| Rate assumption |
7.03% fixed for 30 years |
| Rate source |
Freddie Mac PMMS, Sept. 24, 2026 |
| Income needed with 5% down |
About $340,000 |
| Income needed with 10% down |
About $325,000 |
| Income needed with 20% down |
About $281,000 |
| Property tax assumption |
1.1% of home price per year |
| Homeowners insurance assumption |
0.35% of home price per year |
| PMI assumption below 20% down |
0.50% of loan amount per year |
| Housing-cost benchmark |
28% of gross income |
The tax, insurance and PMI figures are planning assumptions rather than estimates for a particular home or borrower. Actual costs can differ substantially.
The 28% housing-cost benchmark is also not a mortgage approval rule. Lenders evaluate the complete application, including other monthly debt and the requirements of the loan program.
Salary Needed for a $1 Million House at Today's Rate
The table below uses Freddie Mac's 7.03% average 30-year fixed rate from Sept. 24, 2026. The same $1 million purchase produces substantially different payments depending on how much you put down.
| Down Payment |
Cash Down |
Loan Amount |
Estimated Monthly Housing Payment |
Estimated Salary Needed |
| 5% |
$50,000 |
$950,000 |
About $7,944 |
About $340,000 |
| 10% |
$100,000 |
$900,000 |
About $7,589 |
About $325,000 |
| 20% |
$200,000 |
$800,000 |
About $6,547 |
About $281,000 |
These estimates include principal and interest, the tax and insurance assumptions above and illustrative PMI of 0.50% annually when the down payment is below 20%. They do not include HOA dues, flood insurance or other monthly debts.
Income Needed for a $1M House at Different Mortgage Rates
Mortgage rates have an outsized effect at this price point because even a small change applies to a large loan balance.
| Rate |
Down Payment |
Estimated Monthly Housing Payment |
Estimated Annual Income Needed |
| 6.50% |
5% |
About $7,609 |
About $326,000 |
| 6.50% |
10% |
About $7,272 |
About $312,000 |
| 6.50% |
20% |
About $6,265 |
About $268,000 |
| 7.03% |
5% |
About $7,944 |
About $340,000 |
| 7.03% |
10% |
About $7,589 |
About $325,000 |
| 7.03% |
20% |
About $6,547 |
About $281,000 |
| 7.50% |
5% |
About $8,247 |
About $353,000 |
| 7.50% |
10% |
About $7,876 |
About $338,000 |
| 7.50% |
20% |
About $6,802 |
About $292,000 |
The 6.50% and 7.50% rows are hypothetical scenarios used to show rate sensitivity. The 7.03% figure is Freddie Mac's Sept. 24, 2026 PMMS average.
Mortgage Payment on a Million Dollar House
With 10% down at 7.03%, the example payment is about $7,589 per month. With 20% down, it falls to about $6,547.
| Payment Piece |
10% Down at 7.03% |
20% Down at 7.03% |
| Principal and interest |
About $6,006 |
About $5,339 |
| Estimated property taxes |
About $917 |
About $917 |
| Estimated homeowners insurance |
About $292 |
About $292 |
| Illustrative PMI |
About $375 |
$0 |
| Estimated total housing payment |
About $7,589 |
About $6,547 |
The actual payment could be higher or lower. A property with a large tax bill, expensive homeowners insurance or substantial HOA dues can materially change the income needed even when the purchase price is still $1 million.
Is a $1 Million House a Jumbo Loan?
Not necessarily.
The 2026 baseline conforming loan limit for a one-unit home is $832,750 in most of the country. The high-cost ceiling is $1,249,125.
That means a $1 million purchase with 20% down creates an $800,000 mortgage, which is below the baseline conforming limit.
With 10% down, however, the loan would be $900,000. That exceeds the baseline limit and would be jumbo in many counties, although it can remain conforming in a high-cost area where the local limit is at least $900,000.
With 5% down, the $950,000 loan likewise exceeds the baseline limit but could remain within the limit in some high-cost counties.
A jumbo loan is therefore determined by the actual loan amount and applicable county limit, not the $1 million purchase price alone. Jumbo down payment, reserve and underwriting requirements vary by lender and loan program.
Seller Concessions Can Matter More When Mortgage Rates Are High
At a 7% mortgage rate, negotiating the financing structure can matter almost as much as negotiating the purchase price.
A seller concession can cover eligible buyer closing costs. Depending on the mortgage and how the transaction is structured, seller-paid funds can also help pay discount points for a permanent rate reduction or fund an eligible temporary buydown.
That can preserve more of the buyer's cash or reduce the mortgage payment. But seller concessions cannot simply be converted into cash, and program limits apply.
How Much Can a Seller Contribute on a Conventional Loan?
For eligible Fannie Mae and Freddie Mac conventional mortgages on a primary residence, standard financing-concession limits depend on the loan-to-value ratio.
| Example Down Payment |
Approximate LTV |
Standard Maximum Financing Concession |
Maximum on a $1M Purchase |
| 5% |
95% |
3% |
Up to $30,000 |
| 10% |
90% |
6% |
Up to $60,000 |
| 20% |
80% |
6% |
Up to $60,000 |
| 25% |
75% |
9% |
Up to $90,000 |
Those figures are maximum program limits, not amounts a buyer automatically receives or can necessarily use.
Fannie Mae limits financing concessions to eligible closing costs and does not permit them to fund the borrower's down payment, minimum contribution or reserve requirement. Freddie Mac likewise limits financing concessions based on LTV and eligible costs.
Jumbo loans do not follow one universal Fannie Mae or Freddie Mac concession schedule. The lender's jumbo guidelines determine what is allowed.
Permanent Rate Buydown vs. Temporary Buydown
A seller credit used toward discount points can permanently reduce the note rate if the lender's pricing supports the buydown. A lower permanent note rate reduces principal and interest for the life of that mortgage and can also reduce the income needed to support the payment.
There is no fixed rule that one discount point lowers a mortgage rate by a specific amount. The cost of a given rate reduction depends on lender pricing at the time.
A temporary mortgage buydown works differently. It subsidizes part of the payment during the initial years without permanently changing the note rate.
For example, Fannie Mae requires borrowers with temporary buydowns to qualify using the note rate, not the temporarily reduced payment. A temporary buydown can improve early cash flow, but it should not be treated as permanently reducing the income needed to qualify.
What Type of Mortgage Can Finance a $1 Million House?
Conventional and Jumbo Loans
Conventional financing is likely to be relevant for many $1 million purchases.
With 20% down, the $800,000 loan amount fits below the 2026 baseline conforming limit. Smaller down payments can push the mortgage above the baseline limit and into either high-balance conforming or jumbo territory depending on the county.
FHA Loans
FHA financing can support a $1 million purchase only where the resulting loan amount falls within the local FHA loan limit.
HUD's 2026 one-unit FHA limit ranges from a $541,287 floor in lower-cost areas to a $1,249,125 ceiling in the highest-cost areas. A $1 million purchase using FHA financing is therefore only possible in areas with a sufficiently high local loan limit.
VA Loans
Eligible borrowers can potentially use VA financing for a $1 million home if they meet VA and lender underwriting requirements.
Borrowers with full VA entitlement are not constrained by a VA loan limit for a no-down-payment purchase, although the lender still must determine that the borrower has sufficient income, acceptable credit and adequate residual income for the mortgage.
USDA Loans
USDA guaranteed loans have no-down-payment financing for eligible households, but a $1 million purchase is unlikely to fit many USDA borrower profiles because household income limits, eligible-area requirements and other program rules still apply.
The specific borrower and property would need to meet USDA eligibility requirements.
Example Budget for a $1 Million House
Consider the 10% down example at the Sept. 24 PMMS rate.
| Item |
Example |
| Home price |
$1,000,000 |
| Down payment |
$100,000 |
| Loan amount |
$900,000 |
| Example rate |
7.03% |
| Estimated monthly housing payment |
About $7,589 |
| Gross monthly income at 28% housing benchmark |
About $27,100 |
| Estimated annual income |
About $325,000 |
This example assumes no other monthly debt when translating the housing payment into a salary estimate. Auto loans, student loans, credit cards, support obligations or other recurring debts can change the amount of income needed for mortgage qualification.
What Affects the Income You Need?
Mortgage Rate
The rate has a large effect on a mortgage of this size. In the 10% down examples above, moving from 6.5% to 7.5% changes the estimated monthly housing payment by roughly $600.
Down Payment
A larger down payment lowers the mortgage balance. Reaching 20% down on a conventional loan can also eliminate the need for borrower-paid PMI at origination.
The tradeoff is liquidity. Putting another $100,000 into the home may lower the payment, but it also leaves $100,000 less available for closing costs, reserves and other needs.
Debt-to-Income Ratio
Debt-to-income ratio compares monthly debt obligations with gross monthly income. Both Fannie Mae and Freddie Mac use DTI as part of conventional mortgage underwriting, although the applicable standards depend on the loan and underwriting method.
The salary estimates on this page use a 28% housing-cost benchmark rather than a maximum DTI limit.
Property Taxes and Homeowners Insurance
Taxes and insurance can vary substantially on $1 million properties. Using property-specific figures can produce a much more useful affordability estimate than applying a national percentage.
Mortgage Insurance and Program Fees
A conventional mortgage with less than 20% down can require private mortgage insurance. FHA uses mortgage insurance premiums, VA can charge a funding fee and USDA uses guarantee fees.
Those costs should be included when comparing loan structures.
Seller Concessions
Seller-paid closing costs can reduce the cash you need at closing. When permitted, using part of a seller concession toward discount points can also reduce the permanent mortgage rate.
That distinction matters in a high-rate environment. A price reduction lowers the mortgage balance slightly, while a properly structured rate buydown changes the interest charged on the entire balance. Which produces the larger benefit depends on the actual price reduction, lender pricing, loan terms and how long you keep the mortgage.
How to Buy a Million Dollar Home
Estimate the Complete Monthly Payment
Start with principal and interest, then add realistic property taxes, homeowners insurance, mortgage insurance and HOA dues.
Determine Whether the Loan Is Conforming or Jumbo
Subtract your expected down payment from the purchase price and compare the resulting mortgage with the conforming limit in the county.
Account for Cash Beyond the Down Payment
Closing costs and reserves are separate from your down payment. Jumbo lenders can apply their own reserve requirements.
Compare the Financing Terms, Not Just the Home Price
Compare rate, points, lender fees, PMI and cash to close across the loans available to you.
Negotiate Concessions When the Transaction Allows It
If the seller is willing to negotiate, consider whether eligible concessions toward closing costs or a rate buydown would be more useful than applying the entire negotiation to the purchase price.
Risks of Taking On a $1 Million Mortgage
A seven-figure home price can create a large fixed monthly obligation. Before committing to the purchase, consider how the payment fits if property taxes or insurance rise.
Liquidity also matters. A large down payment can reduce the mortgage payment but leave less money available for repairs, emergencies or required reserves.
Income stability deserves particular attention when the housing payment consumes a large portion of monthly cash flow. Mortgage approval establishes that a loan meets underwriting requirements. It does not determine how much financial margin you personally want after making the payment.
Affording a $1 Million Home in a High-Cost Area
A $1 million home can represent a very different property depending on the market.
High-cost areas may have larger conforming loan limits, making a $900,000 or $950,000 loan conforming rather than jumbo. But higher property taxes, homeowners insurance, condo or co-op charges and other recurring costs can raise the income needed.
Use the property's actual tax history, insurance estimate and association costs when available rather than relying only on the national assumptions used in this article.
Compare Related Affordability Scenarios
If a $1 million purchase is near the top of your budget, compare what happens at a lower home price. The income you need to afford a $500,000 house and the income needed for a $400,000 house show how a smaller mortgage changes the payment.
You can also approach affordability from the income side by comparing how much house a $300,000 salary can afford or how much house a $120,000 salary can afford.
Bottom Line
You may need to make roughly $281,000 to $340,000 a year to afford a $1 million home under the assumptions used here.
At Freddie Mac's 7.03% average 30-year fixed rate from Sept. 24, 2026, the 10% down example produces an estimated $7,589 monthly housing payment and about $325,000 in annual income using a 28% housing-cost benchmark.
Higher rates have increased the importance of the financing structure. Down payment, seller concessions, rate buydowns, existing debts, taxes and insurance can all materially change the calculation.
Frequently Asked Questions
How Much Do You Have to Make a Year to Afford a $1 Million House?
Under the assumptions used here, about $281,000 with 20% down, $325,000 with 10% down or $340,000 with 5% down. The examples use a 7.03% 30-year fixed rate, a 28% housing-cost benchmark and estimated taxes, insurance and PMI.
What Salary Do You Need for a $1M House?
A salary around $325,000 supports the 10% down example used here before accounting for other monthly debts. A larger down payment reduces the estimated income needed, while a smaller down payment or higher housing expenses increase it.
Who Can Afford a Million Dollar Home?
A borrower needs enough documented income to support the mortgage and other debts, plus the required down payment, closing costs and any reserves required by the lender. The specific profile varies depending on the loan amount, mortgage program and property.
Is a $1 Million Mortgage Risky?
The risk depends on how the payment fits your income, savings and other obligations. A large mortgage can leave less room for income disruption, rising taxes or insurance, maintenance and other expenses. Stress-testing the payment against your own budget can show how much margin you would have.
Can Seller Concessions Help With a $1 Million Home?
Yes, when the seller agrees and the mortgage program permits them. Concessions can pay eligible closing costs and may be used toward an allowable rate buydown. Limits depend on the loan type, LTV and lender requirements.
Can I Buy a $1M House With an FHA Loan?
Potentially, but only where the resulting FHA mortgage falls within the county loan limit. The 2026 one-unit FHA limits range from $541,287 in lower-cost areas to $1,249,125 in the highest-cost areas.
Can I Buy a $1M House With a VA Loan?
Potentially. An eligible borrower with full VA entitlement can finance a purchase without a VA loan limit restricting the amount, but the lender still evaluates income, residual income, credit and the property.
Does the Required Income Include My Other Debts?
No. The headline salary estimates use the housing payment and a 28% housing-cost benchmark. Existing monthly debt can change the amount of income needed for actual mortgage qualification.
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