Instructions to my son on how to buy a house in the SF Bay Area (Sacramento: renters, jumbo loan)

[Perma Bear]

Originally Posted by neutrino78x

I've read the whole thing, man. I gave you a mortgage calculator. You're simply wrong.

There is an income requirement to purchase a one million dollar single family home. That requirement is 200k.

That can be your income by yourself, or you can get together with someone else (a spouse) and do it. But you're not going to buy one if your income is 100k. You can't afford it.

So your point is wrong.

My point is that most people in the area don't actually WANT a single family home, and are happy with a condo inside of a building containing other condos. Why do you think so many people do it? It is what they want. They want to live in San Jose or San Francisco. If you live here you most likely don't own a SFH, unless you bought it decades ago when it was cheap.

QED.

My uncle makes stupid money because he owns several properties that were inherited or bought cheap.

[bodyforlife99]

Originally Posted by neutrino78x

There is an income requirement to purchase a one million dollar single family home. That requirement is 200k.

Feel free to show us all the stipulation from banks that they will not loan people money for a mortgage unless they can show income of $200K. Otherwise, please stop wasting everyone's time here. You clearly have not read this thread. There is no such income requirement. And as stated, I'm tired of you misquoting me (feel free to show me every claim you've made that I said....good luck with that because you won't find any of it). Read the thread (there are 35 pages). Otherwise, no one can help you. No one is going to waste the time spoon feeding you and repeating everything to you (nor should they). Again, what you are doing is simply very inconsiderate to the rest of the people that have spent the time articulating thoughts on the topic because you choose not to read them. This thread does not have to be 50 pages simply because you want to come in and restart an entire conversation.

[CA4Now]

Originally Posted by bodyforlife99

Otherwise, please stop wasting everyone's time here....no one can help you. No one is going to waste the time spoon feeding you and repeating everything to you.

Must you disparage every person who happens to disagree with you?

Apparently he believes--as do many of the posters do on this thread--that it's probably not prudent financial advice to buy a home over 4 times one's income unless the buyer is putting a substantial amount down. And that is in conflict with your advice.

[bodyforlife99]

Originally Posted by CA4Now

Must you disparage every person who happens to disagree with you?

Apparently he believes--as do many of the posters do on this thread--that it's probably not prudent financial advice to buy a home over 4 times one's income unless the buyer is putting a substantial amount down. And that is in conflict with your advice.

He's welcome to disagree with anything he likes. Asking someone to substantiate comments that he either misquoted or attributed to me when I never said them is not disparaging. Asking someone to prove a statement such as a bank will not give them a mortgage without proving income of $200K is also not disparaging them. Also not wasting time with comments that have already been addressed is not disparaging them. Thank you.

[2sleepy]

Originally Posted by bodyforlife99

He's welcome to disagree with anything he likes. Asking someone to substantiate comments that he either misquoted or attributed to me when I never said them is not disparaging. Asking someone to prove a statement such as a bank will not give them a mortgage without proving income of $200K is also not disparaging them. Also not wasting time with comments that have already been addressed is not disparaging them. Thank you.

You become dismissive and defensive every time a person disagrees with you. Rather than discuss the issue, you rudely exclaim that they either didn't read the thread or that they have no idea what they are talking about. I attempted to explain that a 43% DTI ratio will generally not qualify you for a prime interest rate and you attacked bankrate as not being a reputable source and told me I haven't read the thread. I gave up on this nonsense, I now check in on the thread occasionally just to see how many others you will try to chase off when they try to have a discussion with you.

[Ultrarunner]

Originally Posted by neutrino78x

You can't, though. The cash would come from your income. What, you're going to save 100/month for 60 years and then buy a one million dollar house in cash? The income requirement to get a one million dollar house is 200k. Sure you could buy in cash in Nowhere, Kansas, but again, that defeats the purpose.

Either the 200k is going to come from one person, or from multiple people buying the house together. Two Google programmers could do it; a heart surgeon could do it by themselves. But 200k is the income requirement. That's just to cover the monthly mortgage payment.

Cash can come from Appreciation and rolling it forward.

For many years I worked two jobs... a part time that I lived from and a full time where I banked my full take home pay...

I started paying into Social Security at age 12... in my spare time, even before I had a license I had bought and sold two cars... one was a basket case Model T that I had put together... that one car was more profitable than my part time job back then.

When I bought my first home at age 22 I used my savings and sold my self restored 1968 Z28 Camaro to a collector that flew out from the midwest to buy it...

I did yard work for a woman up the street in exchange for using her garage to store my Camaro and Model A...

Being an extreme saver and NEVER selling a car for less than I had into to it help tremendously.... even today I don't have a cell and never lived in a home with cable...

My TV is a freebie 35 year old Zenith 25" color console and my Washer and Dryer pair are at least that old... Kenmore in Avocado Green...

Never made anywhere near the kind of money people talk about here... not even a close.

It was always a given I would own my home... as far back as I can remember... getting $20 for my birthday from my Grandmother would go into my Bank of America account so I could buy a home... this is when I was 5 or 6...

Had my own checking account at 13... walked into the bank and the manager said anyone with a paycheck can open a checking account... I had my paycheck with me and opened my account... have no idea if Branch Managers have that ability today???

What I'm saying is I have worked towards home ownership for as long as I can remember... and my first home was going to be knocked down it was that bad... I paid cash for it at age 22 and still own it today...

Here is the SF Bay Area home I bought for cash at age 22... the worst home in the worst neighborhood and it was all mine and I spent my entire life savings of 10 years working to call it home.

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[TR95]

Originally Posted by 2sleepy

You become dismissive and defensive every time a person disagrees with you. Rather than discuss the issue, you rudely exclaim that they either didn't read the thread or that they have no idea what they are talking about. I attempted to explain that a 43% DTI ratio will generally not qualify you for a prime interest rate and you attacked bankrate as not being a reputable source and told me I haven't read the thread. I gave up on this nonsense, I now check in on the thread occasionally just to see how many others you will try to chase off when they try to have a discussion with you.

No, that was me that challenged you and I even pointed out fallacies in someone's article. A 43% DTi ratio is not going to preclude you from a low interest rate like you say. Have you even got a mortgage or know anything about it other than looking at Bankrate or income calculators. What you are saying is just not true. Feel free to call any mortgage broker. I've taken out and refinanced over 5 times in the last year and a half and the rate has always been below 4%. I don't need to tell you anything about my income or such, but if I did it, everyone that qualifies and has a credit score over 720 can do it. If someone doesn't have the credit score then that's where the higher rates come in. Please stop arguing for the sake of arguing you have no idea what you are talking about by pulling nonsense from Bankrate.

[bodyforlife99]

Originally Posted by 2sleepy

You become dismissive and defensive every time a person disagrees with you. Rather than discuss the issue, you rudely exclaim that they either didn't read the thread or that they have no idea what they are talking about. I attempted to explain that a 43% DTI ratio will generally not qualify you for a prime interest rate and you attacked bankrate as not being a reputable source and told me I haven't read the thread. I gave up on this nonsense, I now check in on the thread occasionally just to see how many others you will try to chase off when they try to have a discussion with you.

Simply another comment attributed to me that I never said (similar to the other poster). As stated, I never said anything of the sort.

[2sleepy]

Originally Posted by TR95

No, that was me that challenged you and I even pointed out fallacies in someone's article. A 43% DTi ratio is not going to preclude you from a low interest rate like you say. Have you even got a mortgage or know anything about it other than looking at Bankrate or income calculators. What you are saying is just not true. Feel free to call any mortgage broker. I've taken out and refinanced over 5 times in the last year and a half and the rate has always been below 4%. I don't need to tell you anything about my income or such, but if I did it, everyone that qualifies and has a credit score over 720 can do it. If someone doesn't have the credit score then that's where the higher rates come in. Please stop arguing for the sake of arguing you have no idea what you are talking about by pulling nonsense from Bankrate.

Sorry about that, sometimes I could swear you and life are the same person. But DTI does affect your interest rate and your ability to get a conforming loan. And by the way, the DTI ratio on refi's is higher than on new purchase loans, but by all means jump right in and chastise me for having the audacity to disagree with you, it adds so much to a discussion.

[2sleepy]

Originally Posted by bodyforlife99

Simply another comment attributed to me that I never said (similar to the other poster). As stated, I never said anything of the sort.

Sorry about that but sometimes I could swear you two are dopplegangers