How Do People Buy Million Dollar — Homes

For those who don't fit the traditional mold, alternative paths exist: How Do People Afford Million Dollar Homes? - HomeLight

Lenders typically demand a credit score of 700+ , a debt-to-income (DTI) ratio below 43% , and 6–12 months of cash reserves . how do people buy million dollar homes

Buyers use their investment portfolios as collateral to secure interest-only loans . For those who don't fit the traditional mold,

When a loan exceeds the federal limit (usually around $800k–$1M depending on the area), buyers must secure a . When a loan exceeds the federal limit (usually

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)