How do people afford $150,000 for a down payment on a house in the San Francisco Bay area? Do parents and relatives chip in? Does an FHA help reduce the down payment required?
To get together the down payment for a $800K home, which is about the entry point in early 2016 for the San Jose Bay Area, you should change your thought process and it'll get much easier. Rather than try a brute force attempt to save up $160K, you should break the process up into manageable steps. (BTW, plenty of people work in two income households and earn over $300K a year, allowing them to save $50-100K per year. That's how they can afford $800K homes as first time home buyers. Of course, those tend to aim even higher and buy $1.5M homes.)When you live in an area that has such high home prices and high appreciation rates, saving for an ever increasing downpayment is tough. And, I strongly advocate avoiding an FHA loan. Rather, an easier way is to save up $40K and buy a small condo for $400K at 10% down. (A few years ago when prices were about half, I helped some buyers start with about $20K.) After a few years, you can trade up your increased equity to a $600K townhome along with another $20-30K in savings. Do it again in a few years to a $800-900K homes and you're there, having saved only $80-100K total in 5-6 years. You get to leverage all the tax free gains as a homeowner. It's quite a sweet deal.EDIT (2-24-16): Based on the comments about the anticipated appreciation rates, I want to re-iterate that I'm assuming Bay Area home prices will continue to appreciate given the current dynamics. If you don't agree with that assumption, then the logical choice is to continue saving until you've put together the downpayment. Of course, who knows how long the current appreciation will last before the next correction. Still, for those home owners who are able to hold on for at least 5 years, buying a home in the Bay Area (in particular the peninsula and south bay) has not been a losing proposition for the past 40 years.
On a 200k a year salary could you afford a 300k house and a 50k and 70k car?
Probably could. Depending on whether or not you own a business it might be more lucrative for you to write off the 70k car. But thats up to you. You should be alright.
I make 55k a year can i afford a 200k house?
You want to watch out on becoming house-poor - spending so much on a house that you cannot afford things like replacing a worn-out car, meeting emergency expenses, etc. A $200k house with $70k down still leaves you with $130k mortgage. That's steep on your income. Not to mention needing furniture, furnishings, etc. You'll probably want to make changes to any house you buy, starting with paint! Don't forget closing costs, need for reserves & your "emergency stash," retirement (yes, you should have savings & investments already for that!). Either look for a house in the $150k range, or increase your savings, or increase your income. Better yet, all 3. You're a tad premature on a $200k house, even if you raid mom & dad's attic for all cast-off furniture.
How much house can I afford with a 100k salary?
You did not provide enough information to get a complete and precise answer. If your earn $8,333 monthly ($100K/12). To qualify for a mortgage your Payment-To-Income ratio, also known as Debt-To-Income ratio should be 0.40 or 40% or less; with a very good credit score. Also, outstanding balance from other debt accounts would increase your debt Payment-To-Income ratio (higher ratio is less attractive), other mandatory (obligations) expenditures need to be accounted for in determining your qualification for a mortgage. You can use any free online mortgage calculator; try www.syncrofinance.com
How much money would one have to make per year to afford a $100,000 car?
When in comes to exotic cars,like the 360 or R8, we have a completely different set of qualifiers. Unlike other cars where your debt-to-imcome ration can't be more than 34%, including the car payment, you must have at least 15% to put down and make at least $2400/mth to be approved, we look at many other factors. What is your total annual earnings? How long have you been at that income bracket? How much real estate do you owe? How solid is the business that employs you? How much liquid assets do you have? Are you currently involved in any lawsuits? Any state or federal liens? How secure is your position at work? Once you apply for an exotic car, we contact your bank and your employer and do a background check. We use software that lets us know if you're currently involved in any lawsuit or criminal or civil charges. You also need to prove to us that not only can your income sustain such a high car payment, can you also afford to put up a $1,000,000 insurance bond to cover the car and you? Exotic cars aren't insured the same way as conventional cars. You don't make monthly or annual payments and get a binder. You put up $1,000,000 for a bond and the insurance company will underwrite a policy for you. So although $100,000 per year is a great salary, it won't be enough for a 360 or R8. Set your sights on the $40,000 to $50,000 range. There's some great cars in that range and lenders will be much more inclined to approve you. BUT -- you can forget all this is you don't establish your credit before you are discharged. Get a credit card from your bank. Make every payment on time. And never let your balance owed be more than 30% of your credit limit. Buy furniture for your parents on credit. Do whatever you can to build up a credit history. And keep in in good standing all the time. Then you can car shop when you get out knowing that it should be easy to qualify for the car within your range.
Can I afford 500k home?
The rule of thumb is that you will be able to afford 3 times your household income plus what ever you have towards a down payment. In your case that works out to be exactly $500k. Give a local loan officer a call! Good Luck.
How much home could we afford with a 50K salary?
Since you are a young couple and live in Michigan the best advice anybody could give you would be to rent an apartment or house until you are done with school and the economy stabilizes. It may not be what you want to hear but it truly is the logical thing to do right now.
Salary to afford a 1.5M home?
Hello, My dad is able to afford a 1.6M home. He makes 100-200K He has no inheritance(parents still live) And I am pretty sure he didn't win the lotto. I am reading that to afford that kind of house you have to make around 500K... Any explanations? Thanks