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My lender was trying to get me to do a jumbo and I am in a moderatly high cost of living area, but not NYC or CA. He said you can do one for only 10% down, and also said they are doing a ton of them lately. In high COL areas you can do FHA jumbos.
True, but those loans represent a very small % of the overall market. I'm sure (as we found out in the bubble) that certain sub markets within the high COL areas have an unusual and potentially risky concentration of these loans. I'm in a moderate COL area with an FHA max of $567K for SFR's. It's still far more common for people buying expensive homes to put 20%+ down, even on those homes priced under the FHA limit. Out in the newer suburbs and low income areas however I bet the picture is different.
No student loans, no big debts, good income from good jobs, good credit, good down payment money, and a good sense of budget. We are closing on our home this week in CT and as I've said before, unless you want a really outdated (several decades) cape or raised ranch then your not going to find many homes that fit our criteria. Listed below were the main ones which are hard to find in combination in CT.
2,500sq ft or more
natural gas
city sewer
city water
good size lot
central air
2 car attached garage
2.5 baths
3 bedrooms
Now when I say outdated, we were not looking for granite countertops or anything fancy. But we did want a large kitchen and open floor plan that we could work with and not have to spend $100k up front to get the home to be comfortable. We also live within our means and as much as we like going out for a dinner here and there or some other function, have gotten past the whole bar/club scene and being out till 2am. I'd much rather entertain at my home and spend time on the deck with friends and family, steak, and some wine.
People live with parents, save 100k easily in a few years.
Or 10 people in a chinese house.
Others just have high incomes.
A mortgage on a $400k is not that much even with a low down payment.
What's $1500/month anyway to someone with an "ok" job like 50k?
Hmmm.. a $50K job living in a $400K+ home.. yeah.. let's see how long that is going to last.
There are those who have no idea what the mighty dollar CAN NOT buy these days. Even if one own a $400K home outright (no mortgage, that is). With only a $50K income, you will be struggling in no time in most part of the country.
Owning a house is a big expense. The many parts that make up the house don't last like they used to. Just go visit your home improvement store on the weekend and see all those home owners running around buying replacing items to up keep their home.
People live with parents, save 100k easily in a few years.
Or 10 people in a chinese house.
Others just have high incomes.
A mortgage on a $400k is not that much even with a low down payment.
What's $1500/month anyway to someone with an "ok" job like 50k?
I would LOVE to know how one could stash away $100k by living with parents for a few years. I lived with mine for awhile after college and put away what I would have paid in rent in my savings ($500 - $600) and there is no way I could have hit $100k in just a few years.
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Originally Posted by Gatornation
A 400k mortgage would be almost 2k. Add in taxes and insurance and you are at $2,500 and $3,000 in high tax areas.
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Quote:
Originally Posted by manderly6
You may want to give this some more thought.
Repped.
Quote:
Originally Posted by sj08054
Hmmm.. a $50K job living in a $400K+ home.. yeah.. let's see how long that is going to last.
There are those who have no idea what the mighty dollar CAN NOT buy these days. Even if one own a $400K home outright (no mortgage, that is). With only a $50K income, you will be struggling in no time in most part of the country.
A 400k mortgage would be almost 2k. Add in taxes and insurance and you are at $2,500 and $3,000 in high tax areas.
Yes, exactly. In my area, a $425k house would be about $3000 a month once you figure in taxes and insurance. That's with the lower down payment, but even 20% down it would still be a high monthly payment. Even if you are both professionals, you likely have a lot of student debt, which can be another mortgage like sum to pay every month. My husband and I have to pay 1200 per month just in student loans, because we both went to prof. school and our parents didn't pay for college.
Most 'first-time home buyers' outside of the 'big city' probably don't start-off with a $400K home (unless they come into a significant 'windfall'). Also, $400K homes, (like $100K homes) aren't what they used to be! [Reflecting back on what we paid for relatively modest homes over the years: $16K/'68, $35K/'73, $58K/'80, $75K/'83, $295K/'00, $500K/'04*, $370K/'11 (*2nd).]
This!
Mine: 188k in 1988, and boy did I eat a lot of ramen, remember those interest rates?
Kept that house until I sold in 2004.
1998 380k sold for 780k in 2003
975k in 2003. Sold for 1.125 in 2009
1.101 2009 and I'm staying. So I had a huge down payment for the other sales.
Disclaimer, all of these were in Orange County, calif which is why the prices are so nuts.
People live with parents, save 100k easily in a few years.
Or 10 people in a chinese house.
Others just have high incomes.
A mortgage on a $400k is not that much even with a low down payment.
What's $1500/month anyway to someone with an "ok" job like 50k?
A $400K home is not affordable for most people with a $50K per year job. A person making $50K per year can afford a MAXIMUM total payment (including tax/insurance) of around $1,250 per month. Just the P&I on a$320K loan at 4% is over $1500.
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