Only Two-Income Families Making Six Figures Can Afford to Buy a House Today — Not!

Today, anyone with a credit score of at least 630, a decent debt to income ratio, and a weekly paycheck can afford to buy a house!

There's nothing more delightful than proving the media wrong — okay, smooching with your loved one is a lot more delightful. Point is, today you don't have to be a millionaire to purchase a sweet domicile. Anyone with a credit score of 630 and higher, combined with a decent loan to debt ratio and a weekly paycheck can buy a home.  

Buyers are doing just that! Andrew Scoggin of HousingWire reports, an on-line financial newsletter for the mortgage market, reports Fannie Mae economists say moderate market growth is on the horizon with home sales expected to rise 3.5 percent to approximately 4.74 million in 2012 with another 5% gain in 2013 to nearly 5 million. New home sales could jump 10.4% for 2012.

The two largest segments of the buyer population are made up of First-Time Home Owners and Investers. First-Time Home Buyers consist of young adults spreading their wings for the very first time. Prices are ridiculous! New to the workplace and uncertain about job longevity, first-timers can purchase a remodeled two bedroom condo or townhome in the $115,000 to $130,000 range. Young couples may opt for a three-bedroom townhouse with a basement and garage for $140,000 to $160,000.

Investers prefer to purchase single-family homes under $225,000. They then rehab the properties and rent them out for $1700 to $1900 per month, realizing a positive cash flow of $300 to $500 per month.

Virgin buyers and investers aren't the only ones to take advantage of the great prices and record-low interest rates! Folks who've paid off their homes and desire to downsize make up yet another segment of the buyer population. Luxury townhomes and condos can be purchased for under $350,000. FYI, the North Shore is now affordable for all!

For further consultation, feel free to contact Jennie Spallone at 847-465-3686 or e-mail realtorjennie@aol.com. Conduct your own property search at www.jenniespallonerealtor.com or www.coldwellbankeronline.com.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Jan Leasure January 23, 2012 at 03:55 PM
Jennie; Although the media and the government are trying to frighten potential buyers out of the market this is the BEST time to purchase a home. Yes, credit scores and income requirements have tightened up, however, for many this may be the perfect time to buy. Veterans can still purchase for ZERO down, FHA is available for 3.5% down and all of that can be a "gift". Good for you for encouraging potential buyers to take a second look! - Jan Leasure, Division President, Diamond Residential Mortgage Corp, Libertyville, IL 60048
Jennie Spallone March 02, 2012 at 10:44 PM
Jan, you and I are on the same page! I am a Realtor. I was exposing the myth that it was a bad time to buy. It's a great time to buy right now!


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