Some people have been asking us if there was a “magic number” for how much income they need in order to buy a home. (Not a super expensive home – but an average, every day home.) According to the National Association of Realtors, the average cost of a house is close to $340,000. That can seem unrealistic and overwhelming for many people.
We have some good news for you though! And it may ease some of your stress. If you have a great credit score, a minimum of 20% as a down payment, your income can be just about $46,000. If both your credit score and down payment is less, you will need more of an income.
Did you know that in just the first quarter of this year, the cost of a house has risen by 3.5%? And within the last year, it has risen 12.6%! Many people have been wanting to purchase a home – that is what has led to the increasing of prices. Another factor that has played into this is the fact that over the last couple of years, the interest rates have been the lowest in quite a long time.
There really is no minimum income requirement to purchase a home. Most mortgage loans are very flexible. So like we mentioned earlier, if your income is not very high, you can compensate in other ways. Having a debt-to-income ratio that is low, can play a part in affording a more expensive mortgage.
The loan program you decide to go with also plays a large part in what you will or will not be qualified for. We will be there for you every step of the way – this includes finding out which loan program would be the best fit for you. When you come to the initial meeting, bring all of your questions with you as well!