Rising interest rates and high home prices. This new reality makes the minimum income needed to qualify for a typical mortgage on a median-price home higher than ever.
According to the New York Times, as of 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.
That is a national average. Depending on which state you want to buy, the minimal annual income can be much higher to qualify for a mortgage. This situation is leaving many buyers out of the market and the “American Dream” unreachable.
This chart published by The New York Times shows the metros with the highest income requirements to qualify for a standard mortgage on a median-priced home, as well as the monthly payment that would result.
Highest Required Income
Income Required – Metro – Monthly Mortgage Payment
$ 404,332 – San Francisco (CA) – $ 10,108
$ 402,287 – San Jose (CA) – $ 10,057
$ 300,010 – Anaheim (CA) – $ 7,500
$ 249,554 – Oakland (CA) – $ 6,239
$ 241,372 – San Diego (CA) – $ 6,034
$ 237,281 – Los Angeles (CA) – $ 5,932
$ 233,190 – Oxnard (CA) – $ 5,830
$ 214,904 – Seattle (WA) – $ 5,373
$ 197,734 – New York – $ 4,943
$ 194,188 – Boston – $ 4,855