I didn’t ask him for a W-2 and a list of his debts, but I assume he makes a bit over $100k and I’m sure his FICO is 700+. This is in the SF Bay Area and his reason for moving was a bigger home as they were in a home a little over 1,000 sq feet (with 2 small kids) which I think they sold for over $700k. If you think prices are high here you should see what $700k buys you in Marin County, SF, or the San Jose area.
My point is that lenders have gone from overly lax to overly harsh in a matter of weeks. Of course he should qualify. Any lender in their right mind is going to lend to someone who is making that kind of down payment even if it’s 60% of his take home pay. No way is he going to walk from that kind of down payment and if he does there’s more than enough equity to withstand a horrific housing correction.
