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.
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.
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...
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.