The national median family income was $61,000 in the first quarter. To purchase a home at the national median price of $158,100, a buyer making a 5% down payment would only need a $34,700 income. With a 10% down payment the required income would be $32,900, while with 20% down, the income drops to $29,300.
My daughter makes 42,000 per year. She has tried to apply for a home loan, but she cannot get one, even with superior credit. They always come up with an excuse: “you have no credit history” or " you have been at your job only three years" or “you are a single parent” or “we cannot locate the title work”.
I have no idea Nick where you get your information. Home sales here are still in the gutter. Dan, me, and many others here are just not getting any inspections. Being a CMI does not make any difference. If you are at $249 with radon and termite on any size home, and buddies with local agents and paying “preferred vendor fees”, you may be getting some business.
My 28 year old daughter will close on her first home this month. Income as a Hairstylist under 40k 65,000 home first time home-buyer 0 down if she wanted. She has excellent credit saved her $ and uses credit very rarely. It is possible and I am very proud of her.
You may only need $30k income to buy a house but you will need another $30k income to properly operate and maintain that house after deducting living expenses etc. The average home buyer is clueless about the real cost of home ownership and the system is planning to keep rotating foreclosures in and out of the market to keep real estate prices from escalating too much.
I always ask my clients if this is their first home purchase. I spend extra time with these buyers, telling them about home maintenance and offering some tip lists. RE’s hate that. They do not want anything alarming the home buyer about that $79K home they are buying that has been vacant for two years.
Ain’t that the truth… with an income of 30K, the house better be the only thing you have as a debt. No credit card, no student or car loan… Just living the Dave Ramsey style (which wouldn’t hurt for the majority of Americans, no matter what income)