HSH.com’s latest quarterly report tells us how much annual income is needed in order to qualify for a 20% down payment with a fixed rate 30-year mortgage at the current rates in US largest metros.
HSH, the largest publisher of mortgage information and tools, looked at Q2 2019 median prices sourced from the National Association of REALTORS® (NAR). It also used the industry standard of a 28% debt-to-income ratio to qualify prospective borrowers. Monthly mortgage payments include principal, interest, property taxes and homeowners insurance.
The median home price in Q2 2019 was $279,6000 with a required annual income of $61,123.
Here are the Most Affordable Metros Requiring the Lowest Income in Q2 2019
Detroit
- Required annual income – $46,031
- Monthly mortgage payment – $1,074
St. Louis
- Required annual income – $44,963
- Monthly mortgage payment – $1,049
Cincinnati
- Required annual income – $44,916
- Monthly mortgage payment – $1,048
Buffalo
- Required annual income – $43,857
- Monthly mortgage payment – $1,023
Louisville
- Required annual income – $42,512
- Monthly mortgage payment – $992
Indianapolis
- Required annual income – $42,432
- Monthly mortgage payment – $990
Memphis
- Required annual income – $42,033
- Monthly mortgage payment – $981
Cleveland
- Required annual income – $41,258
- Monthly mortgage payment – $963
Oklahoma City
- Required annual income – $39,073
- Monthly mortgage payment – $911
Pittsburgh
- Required annual income – $35,524
- Monthly mortgage payment – $859
Here are the Least Affordable Metros Requiring the Highest Income in Q2 2019
San Jose
- Required annual income – $239,895
- Monthly mortgage payment – $5,831
San Francisco
- Required annual income – $201,431
- Monthly mortgage payment – $4,702
San Diego
- Required annual income – $127,293
- Monthly mortgage payment – $2,970
Los Angeles
- Required annual income – $111,750
- Monthly mortgage payment – $2,607
Boston
- Required annual income – $107,380
- Monthly mortgage payment – $2,506
Seattle
- Required annual income – $106,619
- Monthly mortgage payment – $2,488
New York
- Required annual income – $102,237
- Monthly mortgage payment – $2,386
Washington DC
- Required annual income – $94,448
- Monthly mortgage payment – $2,204
Denver
- Required annual income – $90,389
- Monthly mortgage payment – $2,109
Portland OR
- Required annual income – $83,522
- Monthly mortgage payment – $1,949
Also read: https://timandjulieharris.com/2019/09/30/low-interest-rates-bolster-august-existing-home-sales-and-refinancings.html, https://timandjulieharris.com/2019/10/02/home-prices-in-20-us-cities-show-most-lethargic-rise-since-2012.html, https://timandjulieharris.com/2019/09/30/now-a-sellers-market.html
