Good call John. BTW I do have income above that level, and still would never consider one of those goofy loans.
I remember back in 95 when buying my first house. I was only making a tad over 100k then. The house in Newport Coast was 275k ( hard to believe now ). I was very nervous about being able to afford the place. I planned on living in it indefinitely, the concept of flipping was not in my vocabulary.
I remember talking with the head sales person on the development (Sancerre was the development). She told me that my income was by far higher than anyone who had bought a house there! I was in complete shock. Even back then she was talking about 40% ratios as no problem.
Now fast forward to 2006, and what a mess we have on our hands. The truth of the matter is, the majority of the people do the wrong thing the majority of the time when it comes to finances.
Congrats on your discipline! Whatever takes place, you will be in a better position to react to it than most others.
