A $350K house is the MOST you should be buying based on the facts provided.
Just my opinion, of course.[/quote]
Why?
Based on their income, and assuming reasonable HOA’s and no Mello-Roos, even with a minimal down payment (3.5-5%) they’ll have a housing component DTI somewhere in the 23-28% range, which is very affordable, and with a minimal down payment, they’ll also have at least 6 months reserves in the bank, which as far as I can see is a bigger hedge against unemployment or other unexpected economic issues than a higher down payment.
