For those who bought a house in Bay Area, what was your DTI at time of purchase counting only base salary as income
Some people advice using only base salary to estimate how much mortgage you can afford. But that would mean no single income family can afford anything even half decent in Bay Area (barring east Bay). I am curious how many people actually follow this. DTI ratio = (mortgage payment + property taxes + loans) / gross income from base salary
25% but that’s counting both base salaries in a dual tech job household. Would be 50% if we were single income.
bought mine last March with 30-40% from base. This is in San Jose, CA
How the hell people can afford multi million dollars loan with one income and 25% DBI?
They can’t. I am pretty sure some people are lying here or trolling. Affording a place with dual income in the Bay Area is very hard in itself. I am renting a one bedroom apartment with my wife even though we have 300k combined tc.
You may be misguided as to how wealthy the people in the bay area are.
This is for both bases in a dual tech household. 14.2% in 2016 and we just put a deposit on a new construction that I estimate will be 23%.
Ideally it should be between 30-40%. That how much one should be able to afford but in reality people go way beyond that just to prove they can buy expensive homes..
They've got to show off to visiting paremts and relatives from India and China that they made the American Dream....