[quote=no_such_reality]It does apply. 5X with around 4% loan equates out to a front end DTI of 40% on a $317 loan. So technically with no debt basically you’re tapped out to $317k plus down payment
Low down payment adds PMI.[/quote]
It doesn’t look like SD homes have EVER sold for 5x (median home vs. median hh income), even at their cheapest.
How can you say this rule of thumb applies in SD, when it’s never actually happened that way? I guess you can argue that it SHOULD apply, but that’s a whole different point from the one I was trying to make.