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A comment on Wealthy mortgage borrowers face cold shoulder from lenders. Parent comment

Re:Wealthy mortgage borrowers face cold shoulder from lenders by alexhutcheson on Friday April 24, 2020 @11:35AM (#22969102)
Source? It would be surprising to me if lenders were regularly approving loans where the mortgage payment alone (not including insurance or taxes) was >=48% of monthly income. There are certainly lenders that will approve mortgages with high ratios relative to salary (due to the value of bonuses and equity comp), but the $125,000 figure is all-in income, so this isn't relevant.

A 40% ratio for the $125,000 household would give you a maximum purchase price of $830,000, which would be a conforming loan in the Bay Area, not a jumbo one.

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Re:Wealthy mortgage borrowers face cold shoulder from lenders by nostrademons on Friday April 24, 2020 @12:42PM (#22970059)
You can check out the actual sale prices of recently-sold homes on Zillow:

https://www.zillow.com/homes/recently_sold/house_type/

In the South Bay near Mountain View, there's basically no single-family homes under $1.5M, and the majority of houses go for $2M up. Many are in the $4M+ range. You can get cheaper in San Jose ($800K-ish for a run-down 2BR from the 50s) or Daly City (low millions), but most of the Peninsula and SF has a floor at a million.

Most Bay Area residents just don't own homes. They rent permanently or maybe own a condo. But the context for this sub-thread is "people with a house", and basically all mortgages for single-family homes are jumbo if you're not paying in cash or putting >50% down.

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Re:Wealthy mortgage borrowers face cold shoulder from lenders by alexhutcheson on Friday April 24, 2020 @01:28PM (#22970699)
Yeah my argument was that all the people who are buying those homes are significantly wealthier than the Bay Area median household.
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Re:Wealthy mortgage borrowers face cold shoulder from lenders by bananabreakfast on Friday April 24, 2020 @07:39PM (#22974138)
The median Bay Area household cannot afford to buy a house, yes, but that does not mean that those buying houses are significantly wealthier. The Bay is far, far richer than you can imagine.

Buying a house for $1M is firmly middle class status. True lower class people simply cannot afford to live in the Bay at all.

To be in the top 1% in the Bay Area you have to make close $1M per year.

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Re:Wealthy mortgage borrowers face cold shoulder from lenders by nickv on Friday April 24, 2020 @07:43PM (#22974168)
Top 1% in San Jose is $964,238 (with the average person in the top 1% making $2,732,379), so right on target.

https://www.cnbc.com/2017/06/14/how-much-you-have-to-earn-to...

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