Amazon employees - how do you buy a home when the base salary is capped at $160k?

Microsoft terrible.
Apr 26, 2018 165 Comments

Do you wait two years until a bank considers your RSU as comp?

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TOP 165 Comments
  • Google farkle
    You don't
    Apr 26, 2018 0
  • Google pilgrim
    160k base cap? What level is this for?
    Apr 26, 2018 17
    • Amazon / Other Samsons
      Bezos needs to recognize Seattle as a premium market (that he created) and start paying better. We are on track to be a trillion dollar company! I dip into my savings all the time. Not worth it for all stress we are subjected to.
      Apr 29, 2018
    • Facebook public
      Naw, he already convinced a ton of people to work for him and has people lining up. Works for us (the shareholders).
      Apr 29, 2018
    • Facebook / Eng LookieLu
      What is Bay Area cap?
      Apr 30, 2018
    • Amazon a2zeee
      185k
      Apr 30, 2018
    • Amazon PuOo44
      Bay Area and Greater NYC area are the only two areas at $185k, rest of US is $160k.
      May 10, 2018
  • Amazon HolidayInn
    I bought a house on $90K salary all-in 2 years ago, how can you not afford it at $160K?
    Apr 26, 2018 5
    • VMware theese
      where ?wyoming?
      Apr 26, 2018
    • Microsoft / Eng
      serrrgey

      Microsoft Eng

      BIO
      Hate coding quizzes but studying hard for better future!
      serrrgeymore
      600 sqft studio is considered as a house for him.
      Apr 26, 2018
    • Amazon HolidayInn
      In Toronto, 3 bed 2 bath condo , 1,200 sqft. Granted it’s gone up 27% since I bought so i probably couldn’t buy it on $90K anymore
      Apr 27, 2018
    • Microsoft MSFT_BOB
      That condo would be $600k in Seattle, or $1.5m in SF.
      Apr 30, 2018
    • Amazon FrugalFuck
      That condo is also ~$700-900K in Toronto now I think based on area, quick googling.
      Apr 30, 2018
  • Citadel janestreet
    Kindly ask your spouse to work?
    Apr 26, 2018 2
    • Amazon / Product
      Brodah

      Amazon Product

      PRE
      Amazon
      Brodahmore
      Emphasis on “kindly”, please, or you may get physically damaged
      Apr 27, 2018
    • Amazon Stylus
      I have no respect for women who don't work, or feel entitled not to work. Unless you have multiple babies at home, then they're already working harder than you.
      May 7, 2018
  • Amazon / Eng Am A Bot
    Save, save, save. I had to save for about 6-7 years at a lower salary than that to get enough for the down payment.
    Apr 26, 2018 1
    • Microsoft useragent
      You caught up with the market craziness? Congs!
      Apr 30, 2018
  • Microsoft JapNslap
    You must be a millennial? Back in 2000 I bought my first home after spending 23 years in Airborne infantry units with the Army. I just landed my first job as a civilian at Microsoft making 60k per year. I had a wife, two sons and a Yorkie and I was the only one working. So basically you make a 100k more than I did. Stop whining, get off your skateboard, shave off your beard, take off your skinny pants and throw out your played out low top 1970’s converse sneakers and man the f up and make chit happen!
    Apr 29, 2018 5
    • Amazon SIJQ75
      <yawn>
      No one cares about your history
      Apr 29, 2018
    • Microsoft terrible.
      OP
      Back in 2000 a 🏠 was much less. Different story.
      Apr 29, 2018
    • Amazon vCye81
      Back in 2000 you could go to the movies for a nickel. And it came with popcorn and a soda.
      Apr 29, 2018
    • Amazon kharri
      You guys, including OP, trolling this guy are idiots. Yes, houses in 2000 were less expensive, but you must be missing the point. It’s about cash flow- find a house within your means. If you’re a Single income, maybe that means you get a condo, not a house. This guy is right that you can make more with less.
      Apr 30, 2018
    • Tableau / Eng
      SloppyJoe

      Tableau Eng

      PRE
      Microsoft
      SloppyJoemore
      Don’t forget the gold rush. Those who get rich are usually not those putting in the work. In the case of the Bay Area and now Seattle, it’s the bankers and real estate folks. All booms bust eventually. Make sure if you buy a house, to expect to live there 10 years. Don’t buy a house you don’t like and think the market will continue to increase for several more years so you can sell it and move up. If the market crashes before then, it will take 5-10 years to recover and get back above water. Just know, the current housing market is not sustainable. With increasing percentage rates and the loss of interest deductions, it will impact the market. Who knows, it might take many more years, but it seems it will probably be a lot less time.
      Apr 30, 2018
  • Amazon / Eng n0v
    Buy a house 5 years ago?
    Apr 26, 2018 0
  • Amazon Secsev
    If you just got hired, seems way too quick to buy a home.
    Apr 26, 2018 9
    • Microsoft terrible.
      OP
      Yeah I'd like to know too
      Apr 29, 2018
    • Cisco / IT ciscorocks
      Chase bank lender based in Chicago and tech union bank here, my process is on going, but they accepted the exception to consider, I can update in a week if loan went through
      Apr 29, 2018
    • Cisco / IT ciscorocks
      Oops I meant tech credit union
      Apr 29, 2018
    • Adobe 🏈 tick
      We bought with first tech credit union and they consider your RSU and bonus in the DTI ratio.
      Apr 30, 2018
    • Google Hangten
      Cool. Also just found out Stanford Credit Union (Bay area obv) will accept unvested stock as well.
      May 1, 2018
  • Amazon amzn1
    That gets you a $500,000 house. Sell some rsus if you need to buy more
    Apr 26, 2018 7
    • VMware yootube
      I'm disappointed. I expected to see a tent in the example.
      Apr 27, 2018
    • Amazon amzn1
      The bay area has a higher salary gap, so raise you budget a bit ;).
      Apr 27, 2018
    • Broadcom Ltd. uKwp26
      Actually 160K gets a 1M loan, 160/12 = 13,333/mo. Your house expense should be 48% = 6400$ /mo. With 4.5% APR you pay 5000$ and property tax wil be 1200 or so. So you can afford more than 1M home based on how much pay down.
      Apr 29, 2018
    • Broadcom Ltd. uKwp26
      Oh you were probably talking about 90K base.
      Apr 29, 2018
    • Microsoft MSFT_BOB
      OP is not taking home anywhere near 13k. 6k plus in house payments will leave him / her with almost nothing for other expenses. Plus, the issue here is facing for the down payment, which is pretty damn tough here with under 200k
      Apr 30, 2018
  • Apple jmSX38
    Buying a house is overrated. Just save up a million cash over a decade and peace out and be rich. Stop measuring success by being able to buy a house.
    Apr 29, 2018 11
    • Broadcom Ltd. uKwp26
      Unfortunately, 2022 is right. 1M is not much of a home in some areas of SV, but there’s cheaper areas too, more commute!
      Apr 30, 2018
    • Illumina aofG13
      The median cost of a home is a bit over 200k in this country. If you insist on living in areas where things are crazy expensive, then a million isn’t much. But for most people in the country, it’s a ton. Check out what you can buy in beautiful Raleigh NC for example.
      Apr 30, 2018
    • Microsoft MMLR62
      High housing prices = high income jobs + high standard of living generally
      Apr 30, 2018
    • Broadcom Ltd. uKwp26
      @ Illumina I see what you’re saying but the OP is talking about the cap for all over USA. And he/she is concerned coz of the fact I mentioned above that in certain areas 160K cap wouldn’t just work. Instead of employees moving out to Raleigh maybe Amazon should move of SV if they can’t pay employees enough. Don’t you agree ?
      Apr 30, 2018
    • Microsoft
      L62

      Microsoft

      PRE
      Amazon
      L62more
      I’m a millionaire.

      Wow, what do you do all day?

      I live in trailer and eat ramen and watch movies I get from the library. I’ll be able to die a millionaire though.
      Apr 30, 2018
  • Apple / Eng Iniesta
    Why can’t you buy, dream of the 90s is alive in Portland
    Apr 26, 2018 5
    • Facebook / Ops freefoodFB
      STOP TELLING PPL TO MOVE TO PORTLAND!!! -portlander here. 😠
      Apr 29, 2018
    • Amazon ytres
      Portland is such a dirty pile of 💩 you can keep it
      Apr 29, 2018
    • Lyft / Other Jmacrow
      Leave Portland out of this.
      Apr 30, 2018
    • Autodesk AtXY13
      Hah! An entire generation is currently migrating from SF to Portland. Manifest destiny. We just completed new offices in downtown Portlandia. I give it 2yrs before a one bedroom there starts at 3k and the median home price tops a mil ticket.
      May 1, 2018
    • Amazon / Mgmt apoptosis
      NoPo is already lost. Even Gresham is getting gentrified.
      Portland is a dead end.
      May 12, 2018
  • Amazon / Eng while(😪)☕
    You get a signing bonus for the first two years until the RSUs kick in. For the RSUs, it's more likely they'd be considered assets, but not income.

    It all depends on your lender and your entire financial profile though.
    Apr 26, 2018 4
    • Amazon / Product
      GoAlexa

      Amazon Product

      PRE
      AMD, EY
      GoAlexamore
      Signing bonus is not counted as salary - I just had my loan approved and they didn’t take that.
      Apr 26, 2018
    • Amazon RBOo88
      My bank considered it. But even without it I was well over qualifying so they didn't really care
      Apr 27, 2018
    • Amazon / Eng while(😪)☕
      There's not always hard rules. If they can see you're clearly in great shape, they're going to be flexible in sorting out income and asset requirements.
      Apr 27, 2018
    • Amazon kharri
      Signing bonus can still count for down payment! That’s still one part of the equation. Then get a loan your monthly income can support.
      Apr 29, 2018
  • Amazon pure666
    If you’re single and just out of college, you better forget about buying a house within the next two years.
    Apr 26, 2018 1
    • Apple / Eng Everybody
      God forbid you wait two years!
      Apr 29, 2018
  • Oracle TTL
    You need to be a DINK 😝 dual income with no kids
    Apr 27, 2018 2
    • Amazon HeySuez
      I am SINK, no pun intended.
      Apr 29, 2018
    • Broadcom Ltd. uKwp26
      Worse is SIK 😉
      Apr 30, 2018
  • Airbnb panbroke
    helps to have loaded parents
    Apr 27, 2018 0
  • Amazon / Product
    BpIM81

    Amazon Product

    PRE
    Microsoft
    BpIM81more
    Union Bank does consider amazon signing bonus and rsu as income for mortgage
    Apr 26, 2018 6
    • Amazon / Product
      strongsad7

      Amazon Product

      PRE
      Amazon
      BIO
      Sr Product Manager, Amazon in Seattle
      strongsad7more
      I can confirm they did 3 years ago. But, the interest rate was like 80 to 100 bps higher than if they don't consider non salary income.
      Apr 26, 2018
    • New / Eng N0P
      100 bps looks like mortgage insurance under the hood.
      Apr 26, 2018
    • Amazon / Product
      BpIM81

      Amazon Product

      PRE
      Microsoft
      BpIM81more
      Yes within first two years, no interest rate penalty, real story last year
      Apr 28, 2018
    • Amazon kharri
      +1 for union bank. I just got a loan finalized with them. They look at stock/rsu’s on a percentage- like 70% of cash I think.
      Apr 29, 2018
    • Amazon hde876ff
      +1 no interest rate penalty.... Indeed was 0.25% lower than the next best ( first tech, chase, boa and multiple others) at same closing cost

      Loan officer mentioned that they have some formula like x% of rsu value they go with
      Apr 30, 2018
  • Microsoft Wifbenade
    RSUs that haven’t vested don’t help with your house payment. Banks don’t care unreal they are vested. The 5/15/40/40 is something that holds people back. Essentially, it is another form of golden handcuffs that many leave after year one or two (sadly).
    May 1, 2018 5
    • Amazon / Eng n0v
      Some lenders will lend against unvested RSUs
      May 1, 2018
    • Microsoft Wifbenade
      That would be the silliest bank investment in the world. Can you name the lenders that would do this versus the “some lenders” comment?
      May 1, 2018
    • Amazon / Eng n0v
      I mean, RSUs aren't really any more or less reliable than your salary. Both depend on your ability to remain gainfully employed, both can end suddenly, and both can be approximately replaced by a different employer. Union Bank is one that people have mentioned as lending against Amazon RSUs.
      May 1, 2018
    • Amazon / Eng asdzxc
      You have no clue what your saying! I bought my house using wellsfargo which was a program partner and yes, they absolutely used the full offer rsu, so did unionbank but i chose to move forward with WF
      May 2, 2018
    • Microsoft mathcamp
      RSU might be as reliable as salary, but it’s less liquid, more volatile, and has a higher transaction cost. I take my low risk salary any day.
      May 27, 2018
  • Twitch / Other jokerZ
    I believe Union Bank and a couple of local CU in Seattle can work with the Amazon comp structure. They factor in RSU and/or Signing bonus from Yr1/2.
    Apr 26, 2018 1
    • VMware / Eng
      Technique

      VMware Eng

      PRE
      Amazon
      Techniquemore
      Ha, you underestimate my parents money
      Apr 27, 2018
  • Amazon chttps
    Get married....be a DINK...save on taxes...get savings...u will be able to afford a house in federal way, WA in 2 years (pool included).

    Same personal situation c...get a 600sq ft condo next to homeless shelterin downtown Seattle in 2 years. Your choice.
    Key take away is being a DINK.
    Apr 27, 2018 4
    • Microsoft oohds
      Actually, don’t get married if your spouse also makes good money. Spouse and I would be WAY better off if we filed as single. It’s not as though the various caps in each bracket double bc there are 2 people paying, which would make sense. Marriage penalty is some real bullshit.
      Apr 29, 2018
    • Illumina aofG13
      Dual income in tech pays more taxes, not less. My wife and I paid $8000 more in taxes last year than we would have if we were single. We were both surprised, given that most people seem to expect a tax benefit from marriage.
      Apr 30, 2018
    • Intel whoavicky
      Fed way is sketchy tho
      May 1, 2018
    • Intel / Mktg nononsense
      Marriage penalty. It's a thing.
      May 1, 2018

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