The income needed to qualify for a Median priced home has shifted month by month over the last 7 months…noticeably moving upward according to the National Association of Realtors in their July edition of the Housing Affordability Index. To qualify for the same median priced home, income needed has risen from $36,576 in January of 2015 to $44,160 in July of 2015. That’s with 20% down and a 25% qualifying ration for housing expense to gross monthly income.
The Cost of Waiting to Buy a Home | MRED Blog
The National Association of Realtors (NAR) recently released their July edition of the Housing Affordability Index. The index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data.
NAR looks at the monthly mortgage payment (principal & interest) which is determined by the median sales price and mortgage interest rate at the time. With that information, NAR calculates the income necessary for a family to qualify for that mortgage amount (based on a 25% qualifying ratio for monthly housing expense to gross monthly income and a 20% down payment). Continued