How MUCH HOME can you AFFORD???

According to the National Association of Home Builders (NAHB) it takes around $26,430 of annual income to afford a $100,000 home. "In 2012, about 28.9 million households in the U.S. are estimated to have incomes lower than that threshold and, therefore, can only afford to buy homes priced under $100,000," they reported. "These 28.9 million households form the bottom step of the pyramid. Of the remaining 87.5 million who can afford a home priced at $100,000, 23.3 million can only afford to pay a top price of somewhere between $100,000 and $175,000 (the second step on the pyramid)."

Carla Hill at ....  http://realtytimes.com/rtpages/20120319_realestateoutlook.htm

Home Buyers, after being directly involved in Developing new Homes for 15 years and watching the astonishing rise and then drop in home values for all those years, PLEASE heed this advise.


DO NOT allow Bankers or mortgage professionals to persuade you that you can afford more than you really can!!!


Keep in mind that if both Husband and Wife are working, it doesn't usually mean you can all the sudden afford more.  The extra income is truly meant to be a safety net, an addition to the family's savings or a way of digging out of the financial hole many of us fell into.