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How much personal annual income are banks looking for to hand you a 1.5 mil mortgage?
i know a lousy guy just got an FHA mortgage, 3.5% down. loan amount is 1.2 mil, very low income
Would a annual income of 150k do it ?
2006 just called, Countrywide would be more than happy to provide that loan
An annual income of $150K would qualify you, at best, for a $400K mortgage. On the high end.
for conforming, i think it's 4X, non-conforming definitely less.
Thanks guys ... I do appreciate the help with your comments
$1.5m mortgage 30-yr at 3.5% = 6735 monthly payment.
$1.9m place? 1500 square feet at a minimum? At least 2500 a month in common charges.
Total payments $9235 a month. Very likely more.
Income of $150,000 is only $12,500 per month before taxes, probably less than $9235 a month after taxes.
What if you have subtantial assets? So, $150k income, but $500k in the bank? (assume you are doing this for tax benefits)
just found out the lousy guy who got the 1.2 mil fha loan putting just 42k down, his income is merely 70k/year
@Crescent ... Very helpful. So i guess banks will be looking for at least a annual income of $400k
3-4x debt/annual income is a broad-rule-of-thumb but these rules change for special cases like if you are putting a lot down and have a low loan-to-value ratio. Up to you to find a bank who don't apply these rules stringently. Isn't First Republic good for this niche?
@Crescent .. was looking to put down $500k
Each individual's qualification situation is different. Your best bet is to meet with a mortgage professional and get Prequalified. The variables of an individual's Income, Assets, and Credit determine maximum loan qualifications. There are no "rough approximations" to calculate how much income applies to a specific mortgage amount.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker %u2013 NYS Dept. of Financial Services
516-829-2900 ext. 105
Good luck with this , and let us know the results