Seriously, how do people qualify on 500,000 loans with 80,000 incomes? (Santa Ana: renting, mortgage)

[brianguy]

Originally Posted by KaraG

I wonder how many of the people qualifying for homes now are just downsizing. I don't know how an average young couple could qualify now. I think that will be the next huge problem for the market there.

very true, my fiancee and I make over $140k combined and can't afford jack squat in the housing market, assuming we could even qualify (two 700+ FICOs, etc). so we don't even worry about it and continue renting and paying down debts (student loans, etc) for now. it's still really overpriced and as you mention will continue to be a problem if people like us still can't buy a decent home in the next 3-5 years, then in relative terms we never will. then we'll simply figure something else out - likely go somewhere else.

besides putting all our spare cash towards a wedding (ugh, another topic) isn't helping in the meantime. but since prices are still way too high that's moot

[Charles]

Originally Posted by brianguy

very true, my fiancee and I make over $140k combined .....

besides putting all our spare cash towards a wedding .

And then when you have kids you have to ask if you will maintain those two incomes, or make it with one income. Your mortgage won't go down but your income would.

[brianguy]

somewhat, though our incomes are not flat either because we are still young. example, mine went up about 53%, not inflation adjusted, in the last 3-1/2 years (though has been flattening out) and hers probably even higher. that aside, cost of living increases are pretty reasonable to expect. it's very true a single income would be much harder to try to own a home AND raise a family in OC

[tew]

Originally Posted by brianguy

somewhat, though our incomes are not flat either because we are still young. example, mine went up about 53%, not inflation adjusted, in the last 3-1/2 years (though has been flattening out) and hers probably even higher. that aside, cost of living increases are pretty reasonable to expect. it's very true a single income would be much harder to try to own a home AND raise a family in OC

Everyone I know that lives out there and have kids, both husband and wife have to work. I do have one friend that doesnt work but they live in a apartment in Corona.

Thats why I life Irvine, cause I had my son and wanted to buy a house and stay home with him. So here I am in CO with a house and I dont work.

[dockj]

Originally Posted by Jaybee

You get your nanny-state leftist friends in congress to implement requirements that banks make risky loans to lower income folks-that wouldn't otherwise qualify. "Job-schmobbs, the folks don't need jobs..."

Then get ACORN to follow-up by staging protests at lending institutions who object to the requirements. Oh, and provide federal funds to ACORN so they can keep the pressure on. Then, when everything goes to hell in a hand basket-blame the "broken down capitalist policies" of the GOP and ride that mantra to political vistory.

Oh, wait, that's pretty much what brought us to this point.

I know this wasn't the nature of your question, but couldn't resist the opportunity to opine...

Nice way to blame the so-called leftists (of which there are none or few even in government) for the mess Bush and company made. LOL!

The housing crisis in California and elsewhere, meaning the prices are too high for those making even more than median income to afford is all greed based and supply and demand based. Simple as that. The lending crisis is a whole other matter that has its roots based in greed (IMO)

[finzup2]

Originally Posted by Love2dive

If you make 120k per year even with 1200 per month in student loan payments, you qualify for a lot more than 180k. Realistically you qualify for something around 280 to 320k. Unless you have a lot more debt than you are disclosing.

Really .... that's it! I was using the online calulcators and that's what I was coming up with. Interesting...though I will still rent to figure out where I want to be, that gives me hope! No car loans after Feb., and no debt after March other than student loans -- NONE.

[brianguy]

Originally Posted by dockj

Nice way to blame the so-called leftists (of which there are none or few even in government) for the mess Bush and company made. LOL!

I'm not exactly sure what that means... but suddenly I'm reminded of the video of Obama voters being interviewed on election day:

Q: "Who controls the congress?"

A: "Uhhhhhhhhhh, the Republicans"

[Flux&Reflux]

Originally Posted by finzup2

Seriously, how do people qualify on 500,000 loans with 80,000 incomes?

FRAUD! You must be new to this planet........

[A Blue Window]

Just wait until your typical, luxury 5 bed home in 92603 gets under $1m :P

[califantastic]

Originally Posted by A Blue Window

Just wait until your typical, luxury 5 bed home in 92603 gets under $1m :P

You could be waiting a long time. Median asking price for a 5 bedroom home in 92603 is $5.5 million.