how do people qualify for a $600,000. home loan?

Question

I am looking into buying my first home. The med. price for a home in my areae is $600000. When I use the mortgage calculators available on line, I can only qualify for a $195,000. home loan.( can you buy anything for that price?) I make $90,000.00 a year. I don't understand how anyone can qualify for mortgage with the standards they use. I

Answer 1

If you had no other debt, you could probably swing something in the $400-450K range with your income, using about half of your gross monthly income towards your housing payment.

So, all you need to do is save up $150-200K while paying off all your other debts.

Or look at buying something below the median.

Answer 2

You may want to try and find a seller who is willing to finance their property. What percentage of the purchase price are you planning to put down? What is the monthly payment on a $195,000 loan? Have you figured in taxes, insurance, utilities, furnishings?

Answer 3

In order to qualify for a $600,000 loan, you need to make a lot more than $90,000, no debt and a big down payment. Maybe you should focus on getting a house somewhere else and commute to work.

Answer 4

That's why so many people are opting out of California and Florida. The housing prices are insane. What good is living in an area where all you can afford to live in is a chicken coop?

Answer 5

Most people that are looking to buy that expensive of a house have 300K or more down. Right now - lenders are not really lending more than 400K on homes anyway.

You should think about looking at somehting farther from town were you can afford it.

I make $160K per year and I would only finance $190K on my house.

Answer 6

They have a lot of equity in their home, thus putting a large down payment on the new home. It sounds like a condo is in your future.

Answer 7

Well, many of them are married. Maybe you could look into a condo instead of a house.

Answer 8

Stephanie S is right