How Much Income Do I Need to Buy a $750,000, $1 Million, or $1.5 Million Home?

The short answer: with 20% down, a 30-year fixed rate around 7.11%, property taxes estimated at 1.25%, and $200 per month for homeowners insurance, a rough income target is about $140,000 for a $750,000 home, $185,000 for a $1 million home, and $275,000 for a $1.5 million home — assuming very little other monthly debt.

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Those are qualification-style estimates.

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Comfortable affordability can require more income.

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That is the distinction that matters.

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Freddie Mac reported the average 30-year fixed mortgage at 7.11% on November 12, 2026, down from 7.18% the week before.

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I. START WITH A SIMPLE BASELINE

For this comparison, I am using:

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20% down.

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30-year fixed mortgage.

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7.11% interest rate.

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Property taxes estimated at 1.25% annually.

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$200 per month for homeowners insurance.

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No HOA.

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No mortgage insurance.

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Very little other monthly debt.

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That gives us a clean apples-to-apples comparison.

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Real approvals can be higher or lower depending on credit, debts, loan program, property type, reserves, and underwriting.

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II. WHAT DOES A $750,000 HOME LOOK LIKE?

Purchase price:

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$750,000

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20% down:

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$150,000

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Loan amount:

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$600,000

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Estimated principal and interest:

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About $4,036 per month

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Estimated property taxes:

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About $781 per month

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Estimated homeowners insurance:

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$200 per month

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Estimated total housing payment:

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About $5,017 per month

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Using a rough 43% total debt-to-income ceiling and assuming almost no other monthly debt, that points to roughly:

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$140,000 in annual gross income.

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But that is qualification math.

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If you want housing closer to 30% of gross income, the income target is closer to:

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$201,000 per year.

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That is a very different number.

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III. WHAT DOES A $1 MILLION HOME LOOK LIKE?

Purchase price:

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$1,000,000

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20% down:

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$200,000

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Loan amount:

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$800,000

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Estimated principal and interest:

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About $5,382 per month

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Estimated property taxes:

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About $1,042 per month

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Estimated homeowners insurance:

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$200 per month

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Estimated total housing payment:

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About $6,623 per month

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Using the same rough 43% debt-to-income assumption with very little other debt:

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You are around $185,000 in annual gross income.

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For a more conservative 30% housing ratio:

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You are closer to $265,000 per year.

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Again:

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Approved and comfortable are not the same thing.

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IV. WHAT DOES A $1.5 MILLION HOME LOOK LIKE?

Purchase price:

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$1,500,000

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20% down:

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$300,000

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Loan amount:

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$1,200,000

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Estimated principal and interest:

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About $8,072 per month

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Estimated property taxes:

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About $1,563 per month

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Estimated homeowners insurance:

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$200 per month

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Estimated total housing payment:

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About $9,835 per month

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Using the same 43% qualification-style assumption:

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You are around $274,000 to $275,000 in annual gross income.

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For a more conservative 30% housing ratio:

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You are around $393,000 per year.

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And at this price point, jumbo underwriting, reserves, asset requirements, and income documentation can become more important.

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V. HERE IS THE QUICK COMPARISON

$750,000 home

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Estimated payment: about $5,017.

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Rough qualifying income: about $140,000.

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More conservative comfort income: about $201,000.

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$1,000,000 home

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Estimated payment: about $6,623.

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Rough qualifying income: about $185,000.

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More conservative comfort income: about $265,000.

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$1,500,000 home

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Estimated payment: about $9,835.

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Rough qualifying income: about $275,000.

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More conservative comfort income: about $393,000.

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These are estimates, not approvals.

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But they are a useful starting point.

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VI. OTHER MONTHLY DEBTS CAN CHANGE EVERYTHING

This is where online affordability calculators often go wrong.

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They assume your income is available almost entirely for housing.

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Real borrowers may have:

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Car payments.

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Student loans.

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Credit-card payments.

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Personal loans.

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Child support.

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Other mortgages.

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Or investment-property obligations.

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Suppose you have $2,000 per month in recurring debt.

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That $2,000 comes directly out of the debt-to-income room that could otherwise support the mortgage.

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So two people earning $200,000 can have dramatically different buying power.

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VII. DOWN PAYMENT CAN MOVE THE NUMBER FAST

These examples assume 20% down.

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But maybe you put 30% down.

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Maybe 10%.

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Maybe 5%.

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Maybe you are using VA financing with zero down.

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Maybe you have enough assets to structure a jumbo loan differently.

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A bigger down payment lowers the loan amount.

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That lowers the principal-and-interest payment.

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And that can reduce the income needed to qualify.

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But I would not automatically empty every investment or savings account just to reduce the mortgage.

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Reserves matter too.

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VIII. HOA DUES MATTER MORE THAN PEOPLE EXPECT

This is especially important in California.

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A $1 million condo with a $900 monthly HOA is not the same affordability calculation as a $1 million single-family home with no HOA.

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That $900 counts in the housing expense.

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And it can materially reduce buying power.

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Same purchase price.

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Different qualification.

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That is why condo buyers should never shop based only on price.

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IX. JUMBO LOANS CAN HAVE DIFFERENT RULES

Once the loan amount moves outside conventional conforming limits, the underwriting conversation can change.

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Jumbo programs may require:

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Higher credit scores.

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More reserves.

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Lower debt-to-income ratios.

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Specific asset requirements.

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Different treatment of bonuses, RSUs, commissions, or self-employed income.

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That means the income needed for a $1.5 million home can vary considerably depending on the actual loan structure.

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A spreadsheet estimate is not a jumbo approval.

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X. THE PAYMENT YOU CAN QUALIFY FOR MAY NOT BE THE PAYMENT YOU WANT

I would not tell somebody earning $190,000:

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“Congratulations, you can buy a $1 million house, so go spend $1 million.”

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That is not the conversation.

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I want to know:

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What are you saving every month?

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Do you have childcare?

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Are you funding retirement?

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Do you travel?

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Do you own other property?

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How much cash will be left after closing?

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What happens if insurance rises?

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What payment lets you sleep at night?

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The lender determines what you can qualify for.

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You determine what you actually want to live with.

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THE BOTTOM LINE

At today’s mortgage rates, a rough starting point with 20% down is:

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About $140,000 of income for a $750,000 home.

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About $185,000 for a $1 million home.

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About $275,000 for a $1.5 million home.

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But those numbers assume very little other debt and use qualification-style math.

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A more comfortable income target can be significantly higher.

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That is why I do not start with:

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“How much house can we get approved for?”

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I start with:

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“What monthly payment feels right?”

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Then we build the purchase price around that number.

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That is a much better way to buy a house.

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California homebuyers asking how much income they need to buy a $750,000, $1 million, or $1.5 million home should compare mortgage rate, down payment, loan amount, property taxes, homeowners insurance, HOA dues, debt-to-income ratio, monthly debts, reserves, jumbo loan requirements, and comfortable monthly payment. Buyers in Orange County, Los Angeles, Riverside County, San Diego, San Francisco, Marin, Sonoma, and the Bay Area may qualify for very different purchase prices depending on their full financial profile and mortgage structure.