Only 51% of Southern California households can ‘afford’ entry-level home with ‘generous’ mortgage

By Jonathan Lansner

Just 51% of Southern California households can comfortably buy an entry-level home — and they’d need to earn at least $70,090 annually, according to a California Association of Realtors first-time buyer financing index.

The association measures buying conditions for a hypothetical first-time house hunter with an index that assumes more generous borrowing terms than “traditional” affordability indexes. This math includes a smaller downpayment (10% vs. 20%); adjustable-loan rates vs. fixed; more household income toward the mortgage payment (40% debt-to-income vs. 30%); and buying a less expensive starter home (85% of the median price).

In the region comprising Los Angeles, Orange, Riverside, San [READ MORE HERE]

Source: OC Register

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