Getting harder to qualify for mortgage loans…

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[SD Transplant]

thanks for keeping us up to speed on this fiasco.

[SD Transplant]

thanks for keeping us up to speed on this fiasco.

[SD Transplant]

thanks for keeping us up to speed on this fiasco.

[SD Transplant]

thanks for keeping us up to speed on this fiasco.

[SD Transplant]

thanks for keeping us up to speed on this fiasco.

[beanmaestro]

I have to admit, I don’t really follow the logic in these limits. Our expenses break down more or less as follows (well, before we bought a house)

25% taxes
35% savings
15% rent
25% other expenses

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.

[beanmaestro]

I have to admit, I don’t really follow the logic in these limits. Our expenses break down more or less as follows (well, before we bought a house)

25% taxes
35% savings
15% rent
25% other expenses

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.

[beanmaestro]

I have to admit, I don’t really follow the logic in these limits. Our expenses break down more or less as follows (well, before we bought a house)

25% taxes
35% savings
15% rent
25% other expenses

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.

[beanmaestro]

I have to admit, I don’t really follow the logic in these limits. Our expenses break down more or less as follows (well, before we bought a house)

25% taxes
35% savings
15% rent
25% other expenses

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.

[beanmaestro]

I have to admit, I don’t really follow the logic in these limits. Our expenses break down more or less as follows (well, before we bought a house)

25% taxes
35% savings
15% rent
25% other expenses

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.

[Anonymous]

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.

That’s because owning a house is expensive and there are costs outside of your mortgage. At 50%+ of your income what money would you use to repair the roof if you have no savings? What money will you use to do basic maintenance? What will happen if you lose your job for just 3-4 months with no savings?

If you are loaning money to somebody you typically would want to ensure that the normal type of financial hardships don’t result in a foreclosure.

[Anonymous]

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.

That’s because owning a house is expensive and there are costs outside of your mortgage. At 50%+ of your income what money would you use to repair the roof if you have no savings? What money will you use to do basic maintenance? What will happen if you lose your job for just 3-4 months with no savings?

If you are loaning money to somebody you typically would want to ensure that the normal type of financial hardships don’t result in a foreclosure.

[Anonymous]

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.

That’s because owning a house is expensive and there are costs outside of your mortgage. At 50%+ of your income what money would you use to repair the roof if you have no savings? What money will you use to do basic maintenance? What will happen if you lose your job for just 3-4 months with no savings?

If you are loaning money to somebody you typically would want to ensure that the normal type of financial hardships don’t result in a foreclosure.

[Anonymous]

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.

That’s because owning a house is expensive and there are costs outside of your mortgage. At 50%+ of your income what money would you use to repair the roof if you have no savings? What money will you use to do basic maintenance? What will happen if you lose your job for just 3-4 months with no savings?

If you are loaning money to somebody you typically would want to ensure that the normal type of financial hardships don’t result in a foreclosure.

[Author]

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