How Do People Buy Million Dollar Homes -

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

Buyers use their investment portfolios as collateral to secure interest-only loans . how do people buy million dollar homes

Lenders typically demand a credit score of 700+ , a debt-to-income (DTI) ratio below 43% , and 6–12 months of cash reserves . By keeping $2M in stocks growing at 8%

Sophisticated buyers often use private wealth management services that offer tailored mortgage solutions, exclusive rates, and flexibility not found at standard banks. 4. Creative and Alternative Financing a debt-to-income (DTI) ratio below 43%