What does it take to buy a home in Boise? Meridian? Eagle? Nampa? Here goes…

This is a local variation of an article that MSN real estate re hashes every few months.

http://realestate.msn.com/what-you-must-earn-to-buy-a-home-in-25-cities-in-2013

The gist is that you would need to make x dollars to by the average house in these markets.

It assumes a 20% down payment and a conventional loan at the national average rate of 4.64%.  For Ada County, I will use .6% as the property tax with home owners exemption and $500/yr for home owners insurance.  I will also use the 28% housing payment ratio.

I think some local insight would be helpful to my fellow Idahoans, so here it is:

Boise Metro average: Median home price:  $199,900 $964/mo estimated PITI.  You need a salary of $3442 per month or $41,299 per year.

Now to break it down into specific sub-markets

Eagle, ID Median home price: $379,500 (according to Zillow) $1814 est, PITI.  You need a salary of $6477/mo or $77,728 per year.

Meridian, ID Median home price $ 210,000, $1005 est. PITI.  You need a salary of $3590/month or $43,083 per year.

Nampa, ID Median home price $140,000, Estimated $732 per month, $2049 per month or $24,589 per year.

 

Numbers came from this site: http://www.deptofnumbers.com/asking-prices/idaho/boise-city/

and Zillow: http://www.zillow.com/local-info/ID-Ada-County-home-value/r_66/

 

With the new Qualified Mortgage rule, the debt to income limits are 43%, a bit lower than what has been approved in the past, that means if you earn $4000 per month gross income, your total debts are limited to $1720 per month.  For the record, the old banker standard of 25%/36% works very well for most people’s budgets. That would mean a person with the $4000 per month gross income should spend no more than $1000 per month on their house payment and no more than $1440 for all debts, monthly utilities and groceries excluded.

The salaries mentioned are well within the range one can find in the Boise, Idaho area.

Everyone’s situation is different, I recommend talking to a Loan Officer you know and trust and get your Pre-Qualification ahead of time.  If you don’t have one, I would love to help.

 

 

None found.

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