How can medium income people afford a home in California?

Question

How is it that people can afford homes in California if a small home is $400,000 or more?

I know for a fact that people don't make 8 times as much as the rest of the country.....

Do they get 100 year mortgages???

Answer 1

My husband and I have the same problem. I would like to buy a condo just to get our feet wet- at least we would be paying for something we own. He thinks they are a rip-off and doesn't want to.To the real estate agent who asked where do we get our pricing info from I would just like to say that we get our prices from actually LOOKING at houses- that's why we know how expensive they are.

Answer 2

As far as what you said about home prices, I can show you 500 residantial properties in just the LA, San Bernardino, and Riverside areas alone with prices $100,000-$200,000. I don't know where you are getting your average home information from, but these are the homes listed on the MLS here. Now, as far as being able to afford them, there are many, many creative financing options available. A lot of people use ARM's or Option ARM's (Adjustable Rate Mortgages) Some, in fact have gone Neg-Amortization by using Option ARM's. But, CA does have one of, if not the highest minimum wage standards in the country. Also, a few tricks are having co-borrowers, substantial money down, and so on. There are sooooo many ways to qualify, it's ridiculous!

Answer 3

Not everybody can qualify for a loan, but if you have a good job and good credit, you'd be surprised...
A lot of people make a mistake by going for a $400,000 house, when they can afford only $300,000. Buy a condo, if a house is too much, just make a start.
If it's your first house, buy what you can afford, not what you WANT, but buy it! Make a start.
People are saying: "If only I bought a house 10 years ago..." Well, in 10 years from now they'll be saying the same thing.
Work with a good agent and you'll get help not only in finding a place, but with financing as well. Services of an agent is free for you, when you are a buyer.
Check out my website, call me, if you want. I'm a Century 21 agent.

Answer 4

Rent for a while, then buy a house. People don't get 100 yr mortgages, they get $400,000 mortgages for 30 years, with relatively low monthly payments, but end up paying about 1 million back to the bank with interest. Twisted system, eh?

Answer 5

With medium income I would suggest purchasing a home in a lease to own situation. This way you avoid having to go through Fannie Mae and Freddy Mac and meeting their qualifing standards. In a lease to own you lease the property from the owner for a set duration of time with the option to assume the mortgage for a small fee paid to the owner. I would suggest looking into this in your area, be sure to ask a lot of questions to the owner as well as talking to those who have or are renting to own now. Good Luck!

Answer 6

You need a job that pays you in the upper $40's and beyond. Keep in mind the cost of living, your monthly expenses. To be a level that you want to live at a comfortable lifestyle - I would say go for above 40 but of course it depends on your skills and educational background - everything is weighed in when it comes to salary & depends on what you're looking for.... good luck!

Answer 7

we're looking to moving to norther cali and are intimidated too! i couldn't find anything that was a true 3 bedroom house for under 400k too... but i do know average starting sallary for washing windows is around $25 so i'm sure that helps some...

Answer 8

2 incomes or people rent, or were lucky to buy teh house before the big jump, now the prices are going down again

Answer 9

it is very hard because the house in California are very expensive

Answer 10

they can't and that's why they are all moving to las vegas and making me RICH!