Income needed for an $800k mortgage: Factors and scenarios

What you’ll learn

— Typical income ranges for an $800k mortgage

— Other factors that affect affordability, like interest rates and credit scores

— Down payments required for different loan options

— Tips for obtaining a mortgage with favorable terms

The right financial planning could bring you closer to your dream home — spacious living areas and a neighborhood you love. How much you can afford depends on factors like your interest rate, credit profile, and down payment size. If you’re curious about the income needed for an $800k mortgage, understanding how these elements work together can help you plan your budget effectively.

Below, you’ll learn more about the salary you need to afford an $800k house and what can influence your terms. Plus, see common scenarios that show how a mortgage of this size works in the real world.

What income is needed for an $800,000 mortgage?

You can typically afford an $800,000 mortgage with an annual income between $200,000 and $260,000. The amount you can borrow depends on more than just your salary, though. We’ll cover those factors below.

Luckily, you don’t have to rely on guesswork to understand your potential monthly payments. Better’s free affordability calculator gives you personalized estimates in just a few clicks. Enter factors like your down payment and interest rate, to see an instant cost breakdown.

...in as little as 3 minutes – no credit impact

Other factors that affect how much home you can afford

Income isn’t the only factor that goes into whether you can afford a mortgage on an $800k house. Here are some additional elements to keep in mind:

— Interest rate: This is one of the biggest components in how affordable a mortgage feels. Even a tiny difference can move your monthly payment and add up over the life of the loan.

— Credit score: Your credit score plays a big role in landing a favorable interest rate. Especially for conventional loans, lenders like to see a minimum of 620.

— Debt-to-income (DTI) ratio: This metric compares your gross monthly income to your monthly debt payments. Many lenders prefer a maximum debt-to-income ratio of 43%, but your mileage may vary.

— Property taxes: These can look very different depending on the state you’re buying property in. Rates range from just 0.32% in Hawaii all the way up to 1.77% in New Jersey.

— Down payment: The bigger the down payment, the smaller your initial loan, which lowers monthly costs. It also makes you more attractive to lenders since it signals you’re less likely to default.

Lender and borrower budgeting rules

Each lender follows a set of guidelines to decide who qualifies for a mortgage and what interest rates to offer. These include:

— The 35/45 model: This metric compares your gross and net (after-tax) income. It recommends that your total debt payments, including your mortgage and personal loans, shouldn’t exceed 35% of your gross income or 45% of your net income.

— The 25% after-tax rule: This guideline focuses on mortgage payments alone. It suggests using no more than 25% of your net income for mortgage payments.

How much is a down payment on an $800,000 house?

For any mortgage, your down payment size depends on the lender and the type of loan. Here are the most common ways buyers finance an $800,000 home, from zero-down options to loans that require an up-front payment.

No down payment on an $800k mortgage

Two government programs offer mortgages with zero down: Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

VA loans are only available to eligible active-duty service members, veterans, and surviving spouses of veterans. USDA loans offer zero-down options and flexible credit requirements for low-to-moderate income buyers. To qualify, you must live in an approved rural area and have a moderate income below USDA-set limits.

A small down payment on an $800k house

Federal Housing Administration (FHA) loans offer low down payments and flexible credit criteria. With a credit score of 580 or higher, you can put down as little as 3.5%. If you’re in the 500–579 range, however, you’ll need to put down 10%.

Conventional loans, by comparison, offer more flexibility than many people realize. You don’t need to put down 20% — some lenders accept as low as 3% if you have a strong credit profile. There’s one hitch: If you put down less than 20% on a conventional mortgage, you’ll have to pay private mortgage insurance (PMI) until your equity passes that threshold.

$800k house mortgage affordability scenarios

Let’s take a look at a few different scenarios you may face:

— A 30-year fixed-rate mortgage keeps the interest rate the same for the life of the loan. It spreads payments over 30 years to lower monthly costs, but you pay more interest overall.

— A 15-year fixed-rate mortgage maintains the same interest rate for 15 years, but the shorter term means higher monthly payments.

— An adjustable-rate mortgage starts with a fixed interest rate for a set period (e.g., five, seven, or 10 years) before adjusting annually. Initial payments will be lower, but you might face higher costs in the future.

Getting ready for a new mortgage: 3 tips

These pointers will help you start your mortgage search on the right foot.

1. Review your credit

You can access your credit report for free once a week from the three major credit bureaus: Equifax, Experian, and TransUnion. Checking this number gives you insight into what lenders see, helping you gauge your chances of qualifying for good rates.

2. Shop around

Even a small difference in interest rates can save thousands over the life of your mortgage. Apply with multiple reputable lenders to land the best terms possible.

3. Get pre-approved

Pre-approval gives you real-world estimates of your monthly payments that you can compare with your own calculations. At Better, we know your time is valuable. That’s why our pre-approval application takes as little as three minutes to fill out, giving you fast, personalized insights.

Find a Better mortgage that fits your budget

Affording a mortgage depends on a wide mix of factors, from your down payment to your credit profile.

Navigating all of these details can feel overwhelming — but that’s where Better comes in. We work with borrowers in all kinds of financial situations to find affordable loans that make homeownership faster. Our AI-driven approval process takes just minutes to complete, and our Mortgage Experts support you every step of the way.

Lock in a great rate today with Better.

...in as little as 3 minutes – no credit impact

FAQ

How much should you make to buy an $800k house?

You may qualify for an $800,000 mortgage if your income falls between $200,000 and $260,000. But income alone doesn’t determine affordability. Many other factors, like your down payment, credit score, and mortgage interest rate, influence how much you can afford.

What’s a common rule of thumb for the proportion of income spent on housing payments?

Determining how much to afford an $800k house can be tricky. The 28/36 rule makes it easier to estimate:

— Housing costs: Your mortgage payments, including property taxes and insurance, should be no more than 28% of your gross income.

— Total debt payments: Your mortgage plus other debt payments should make up no more than 36% of your gross income.