flexiblefullpage - default
Currently Reading

What's It Take to Qualify for a Mortgage in the Largest US Metros?

Advertisement
billboard - default
Financing

What's It Take to Qualify for a Mortgage in the Largest US Metros?

The minimum income needed to qualify for a typical mortgage on a median-priced home has risen higher than ever


October 26, 2023
Small model house on approved mortgage application next to house keys
Image: Fabio Balbi / stock.adobe.com

The minimum income needed to qualify for a typical mortgage on a median-priced home has risen higher than ever. A recent study by Redfin revealed that in August, buyers needed an annual income of $114,627 to qualify for a 30-year fixed-rate mortgage on a median-priced U.S. home (costing $420,000)—roughly $40,000 more than the median national income. That translates to a monthly house payment of $2,866, which is a record high, according to The New York Times.

Homebuyers in the nation’s 100 largest metro areas needed an income of at least $100,000 per year to qualify for a mortgage in half of those metros, and an income of $50,000 wasn’t enough in any of them, the study revealed. 

California metros took the top seven spots for required income. The greatest annual increases were in Newark and Miami, where the required income rose by 33 percent; the smallest was in Austin, Texas, about 8 percent. Midwest metros also saw comparatively low increases.

In hot spots of pandemic home demand — Austin, Texas; Boise, Idaho; Salt Lake City, Fort Worth, and Lakeland, Fla., among them — home prices fell during the year. But because of higher interest rates, the qualifying income for mortgage approval rose anyway.

Read more

 

Advertisement
leaderboard2 - default

Related Stories

Affordability

The Disappearing Act That Is Middle-Income Housing

An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it

Off-Site Construction

Utah Passes Bill to Regulate Modular Construction at the State Level

Goals for housing innovation and affordability meet in the Utah's passage of a new bill that establishes a statewide modular construction program

Affordability

Affordability Improves, but the Average Worker Still Struggles to Afford a Home

Homeownership around the U.S. continues to require historically large portions of worker wages, a new housing-affordability report finds

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.