Hat tip to DOB for sending this in:
Here’s a corresponding article from the nytimes.com that correctly notes that the leading states have higher priced real estate that require bigger down payments:
“We are stricter with credit scores for buyers,” he said. “Our limit is 660 to 670 from FICO, while the F.H.A. will take lower, maybe down to 640. We also have tightened the debt-to-income ratio; we keep it at 45 percent of buyers’ projected income, and F.H.A. will keep it at 55 percent. But 5 percent money is out there, it is widely available” among banks.
A debt-to-income ratio above 35% still makes no sense to me.
The sand states are all green.
Investors buying bombed-out properties put down higher down payments than government-supported primary-residence buyers.
Jim, you might like these bathrooms the British arent keeping coal in ;D http://www.telegraph.co.uk/property/propertypicturegalleries/9001886/Homes-with-spectacular-bathrooms.html
I guess Michigan’s 13.24% doesn’t count for the top 10???
I just lost out a bidding war to an all cash offer.
“Average” doesn’t mean much.
Chuck
Sorry to hear that Chuck, and yes, I agree – the who cares about the average down payment stat.
I liked the excerpt about qualifying though, which is outrageous in California when the lenders qualify you based on your GROSS income and between fed and state taxes you deduct 30-40%. If the mortgage payment + debts = 55%, you barely have enough for gas and food, let alone home repairs/improvements or college eduction for the kids.
Yes Jim,
If you exclude people who are plunking down significant amounts of cash; meaning “average” people… prices are still quite high, especially compared with other states.
I suppose you can see it as paying for California (jobs, weather, lifestyle). Or, you could see it as precarious and people are pricing in a rosy future.
I don’t know, but as long as the music is playing, you’ve got to get up and dance.
Chuck
PS, we bid 30K over asking on a 750K listing. News is that the buyer was a little above and waived appraisal contingency. I think we bid pretty much at the high end of the appraisal range, so their waive was probably pretty valuable to the bank. We have made 4 very strong offers over the past 3 months. There’s very little for sale now in South OC in our target area, so we’re being patient. Sub 4% rates, though seem very tempting and are having the desired effect in the housing market.