2007-05-27 13:21:55 · 6 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
$360K if you have excellent credit and no debt
2007-05-27 13:24:31 · answer #1 · answered by bobsled 5 · 0⤊ 0⤋
I find all the traditional "rules of thumb" for home lending to be rather outdated, especially if you're in an expensive city (SF, San Diego, Seattle, DC, etc). Houses there are much more expensive, even adjusted for higher wages, so in order to own you just have to commit a greater portion of your income than is traditional, and lenders are all too happy to loan it to you.
I live near Seattle and when I bought a house a couple years ago, I was approved for 5x my income, and ended up taking a loan not much less than that (although, I do have excellent credit so I'm sure that helped). I make more now but my mortgage is still about 50% of my take home income, which is not unusual at all in this area. I know people who make less than you who've been approved for $500k loans.
2007-05-27 22:15:03 · answer #2 · answered by nevergonnaletyoudown 4 · 0⤊ 0⤋
Depends on your lifestyle,but around 3 to 3 1/2 times your gross
2007-05-27 20:24:28 · answer #3 · answered by Anonymous · 1⤊ 0⤋
If you are earning $120K a year, you should be able to buy a house for cash from your savings.
2007-05-27 20:25:11 · answer #4 · answered by khorat k 6 · 0⤊ 1⤋
Mortgage companies like to see your house payment be no more than 28% of your gross monthly income and your total monthly debt be no more than 36% of your income.
Here is a calculator that figures all this out for you. The site is about log homes but the calculator doesn't care about the kind of house.
http://www.loghomeadvisor.com/Calculators/affordability.php
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2007-05-27 20:33:19 · answer #5 · answered by Anonymous · 0⤊ 1⤋
A general rule is you can afford a house three times your annual income.
2007-05-27 20:25:36 · answer #6 · answered by runner1 6 · 0⤊ 0⤋