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What will $75,000 and $100,000 in Income Buy?

Many renters don't realize how much house their income will buy in this environment, when rates are so low.

We often maximize a buyer's qualification by having them use their savings to pay off consumer debt and put less down. For example, paying off debts that total $700 in monthly payments can increase a borrower's purchasing power by up to $125,000 in purchase price.

Below are some figures to use to help you ballpark qualification with your clients assuming they pay off their debt.

And, as a reminder, we are ALWAYS happy to send a full scenario breakdown of market rate and closing costs tailored to your client's qualification and area of search!

With $75,000 of gross annual income, and no consumer debt:**

SFR with 3.5% down and FHA financing: $455,000 purchase price

Principle, Interest, Taxes, Insurance and MI: $2,930

Estimated Down Payment + Closing Costs: $27,900

Interest rate: 3.75%; APR: 4.90%

SFR with 20% down and Conventional financing: $540,000 purchase price

Principle, Interest, Taxes, Insurance: $2,800

Estimated Down Payment + Closing Costs: $125,500

Interest rate: 4.375%; APR: 4.49%

With $100,000 of gross annual income, and no consumer debt:**

SFR with 3.5% down and FHA financing: $605,000 purchase price

Principle, Interest, Taxes, Insurance and MI: $3,880

Estimated Down Payment + Closing Costs: $35,000

Interest rate: 3.75%; APR: 4.9%

SFR with 20% down and Conventional financing: $730,000 purchase price

Principle, Interest, Taxes, Insurance: $3,730

Estimated Down Payment + Closing Costs: $162,500

Interest rate: 4.25%; APR: 4.34%

**Assumptions: 1.25% Property Tax Rate and $0 Transfer Taxes per most of Contra Costa County; Property Taxes & Homeowner's Insurance Impounded; 740 Credit Score; Single Family Home.

Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646

*Original Post Found Here: 

What Will $75,000 and $100,000 In Income Buy? - JVM Lending

Many renters don’t realize how much house their income will buy in this environment,...

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