Lenders typically demand a credit score of 700+ , a debt-to-income (DTI) ratio below 43% , and 6–12 months of cash reserves .
When a loan exceeds the federal limit (usually around $800k–$1M depending on the area), buyers must secure a .
Most people aren't buying $1M+ homes as their first property. They utilize selling an existing home that has appreciated over 5–10 years to generate a $300k–$500k down payment. This significantly reduces the loan-to-value (LTV) ratio, turning a million-dollar purchase into a manageable mortgage. 2. Borrowing Against Assets (Portfolio Lending)
For those who don't fit the traditional mold, alternative paths exist: How Do People Afford Million Dollar Homes? - HomeLight
By keeping $2M in stocks growing at 8% while paying 5–6% interest on a loan, they essentially "make money" while buying property. 3. Jumbo Mortgages and Private Banking
