Working backwards from $600K
A $600K home in 2026 with 10% down ($60,000), 6.75% 30-year rate, 1.1% property tax, 0.4% insurance, and monthly PMI runs about $4,150/month PITI. That's the number your income must support.
Conservative 28% underwriting requires ~$178K in gross income. Most lenders will approve at 36%–43% DTI, which drops the required income to $115K–$140K with modest other debt. Below $110K, qualifying for $600K requires a co-borrower, larger down payment, or a program with more DTI headroom.
Cash to close on a $600K purchase
Total cash requirements for a $600K home:
- Down payment: $21,000 (3.5% FHA) to $120,000 (20% conventional)
- Closing costs: $14,000–$22,000
- Reserves: 3–6 months PITI ($12,500–$25,000) — required for jumbo, wise for conforming
Total typical cash: $70,000–$170,000 depending on program and down payment.
If you're near the conforming loan limit ($806,500 in 2026 for most counties), $600K keeps you comfortably conforming even at 5% down.
Right program at $600K
Conventional 10%–20% down is the standard path. With 740+ FICO, PMI is small and drops off at 78% LTV.
VA (if eligible) still wins — no down payment and no PMI even at $600K, since the current conforming limit accommodates it.
Jumbo may enter the picture if your down payment is low enough to push the loan amount above the conforming limit. Expect 700+ FICO and 6+ months of reserves.
FHA is possible on $600K in high-cost counties where FHA limits reach that far — but MIP for life makes it a poor long-term choice unless credit forces the issue.
Is this path right for you?
Frequently asked questions
Can I buy a $600K home on $120K?
Yes, with 10%–15% down, minimal other debt, and 700+ credit. Expect a payment near 41%–43% of gross — tight but workable.
What credit score do I need for $600K?
620+ for conventional, 720+ for best pricing, 700+ for jumbo. Higher scores meaningfully lower your rate and PMI at this loan size.
Should I put 20% down on a $600K home?
If you can do it without emptying reserves, yes — it saves ~$180/mo in PMI and lowers PITI to about $3,750/mo. If it drains your reserves below 3 months, stay at 10%–15% down.
Related guides
- The Complete First-Time Homebuyer's Readiness Guide
- How much home you can actually afford
- Pre-approval checklist
- Back to the Knowledge Base
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