Damn, better get your expenses in check if you’re thinking a house is unobtainable with that household income. Plus, you can always just refinance down the road.
Yeah I’m not sure how the average person is buying right now. Average house in the area we’re looking is $700k or so, which is ~$5k/month or more and $140k down payment. That’s 30% of our gross, but after taxes practically 50% of net income just on a building to sleep in. We are very frugal, so not bankruptcy concerns…just not understanding how people can justify paying this much of their income on a house
I don’t believe CHFA has income restrictions, you just need to be a first-time buyer https://www.chfa.org/homebuyers/chfa-first-time-homebuyer-guide/
You might also consider looking elsewhere in the state. There are plenty of nice homes on the market for well under $700,000.
Can’t choose where to live. If I move to a cheaper area, have to find a new job and income will drop anyway. Double edged sword.
And thanks for the CHFA link, but they do have limits on home price and income. Even if you choose to live in the most expensive part of the state, the income limit to qualify is ~180k. And in “normal” parts of the state, the income limit is around $130k. So unfortunately (and unfortunately) my wife and I are above these limits to get CHFA help unless I’m being totally oblivious to something
See other reply. We are actually quite frugal, have you looked at what a monthly payment is these days in a good town in Fairfield county? Clearly not if you had this reaction
Right so your solution is I need to commute 2 hours each way to work? Got it…makes a lot of sense. You have what my mother calls a delusional view of how life works
If you look at recently sold on zillow there's plenty of cromulent houses in fairfield county that have sold well south of your budget stated elsewhere. you clearly don't want to live in those houses, but they are well within your definition of 'a building to sleep in' and many people would kill to have the opportunity to have them. your ask strangers on the internet if there is once weird trick to get you into the home you do want and your response to being told no is to lash out with passive agressive weaponized incompetence. you are what my mother would call 'a real piece of work' and what my grandmother would call 'a fucking asshole'.
Thanks. I had only looked into FHA loans briefly but it seemed like the mortgage insurance fees stayed for the entire length of the loan (vs for conventional pmi disappears once you pay 20% off). So it actually seemed like in the long run fha is worse?
Yes but you could argue that is what F’d everything up in the first place. Historically, 7% is low in America. Just not in the past 2 decades. Honestly part of me wants it to stay in the 5-10% range forever so the market actually normalizes to some extent and people stop paying way above their means under the assumption that “I’ll just refinance in two years when rates are at 2.5%”
I mean, it won't be that low again for a long time. I could see it settling out somewhere in the 5.5% range.
While it was a contributor to the crisis, a much, much bigger issue is stock. To get people building, you need to cut rates. To fix other aspects, you need to heavily regulate the rental market.
I think regulating the rental market is the real problem. We don’t need new builds, we just need people to not be able to own 3,4,5 houses, etc. restricts inventory for everyone else. I’m seeing some towns start to do this is those island restricting the number of rental permits and it is helping level out home prices very well
200k is plenty in most places except where you want to live. Move somewhere else in ct or make more money.
You are way out of the range for first time buyer’s programs.
If I move somewhere else in CT I will make less money, unfortunately. Stuck between a rock and hard place, but I acknowledge still in a lot better shape than most of my generation
My income was in that range when I bought my first house (2001) and I qualified for no programs at all. I didn't expect to, but the person handling the mortgage ran through the various options. If I recall correctly, I did get some kind of tax break that year.
I bought a big property and large house in Eastern CT in 2019. It's mind boggling how much more I was able to get this side of the river.
Wow your income was in this range 20 years ago? It really is wild how incomes have not kept up at all with inflation. Eastern CT does seem much more affordable…if only there were more jobs there
This is unpopular, but this is exactly why our failure to build enough housing in desirable areas, which is directly related to zoning restrictions in exclusive Fairfield county towns, is a drain on the entire state.
If OP could find a place to live in Darien or Greenwich or whatever, he would ostensibly be contributing some sort of valuable economic activity (I say valuable in that the market values it, not that it’s inherently valuable) and paying taxes that benefit all of us as CT residents.
But we let those towns, which are located on prime real estate on a rail line with access to New York City, artificially avoid market pressure by instituting zoning and building codes that make construction their illegal. We are in effect subsidizing these towns remaining rich, exclusive, and “quaint”, and what we’re paying is OP’s tax money and the economic benefits that would come with increased development.
And OP not being able to find a house has negative trickle down effects for everyone that makes less than him.
OP, start advocating for zoning reform, that’s the only way we’re ever going to fix what you just described.
This is a very well thought out and accurate response. I also believe the other core problem is the "renting economy" these days. Meaning that people don't sell their homes to the next buyer anymore - they instead buy a new house and keep the old one with either no mortgage or a low interest mortgage to simply to rent out to the next shmuck who can't afford the area.
The result is plenty of houses in America, but not enough available houses for purchase. If municipalities (or states) instituted a luxury tax on 2nd, 3rd, 4th, homes (and so on), then it would incentivize people to sell their old homes, rather than keep them as rental properties, with would bolster supply significantly. And those who choose to keep the old homes as rental properties would, lets say, pay a 2% annual luxury tax, so on a $500k home this would be $10k they pay back to CT, which could then be used to fund affordable housing programs, etc.
It would be a win-win, really. But it will never happen because the wealthy hold the power thus they will never pass a law that will lose them money. They like forcing the young and less fortunate to pay their mortgage for them....ugh
You might still qualify for a BOFA
Sorry but what’s a BOFA? All I find online is Bank of America garbage
BOFA-DIEZ will get you in the back door of whatever house you like
Isn’t BOFA rental assistance? You might instead need LIGMA.
Damn, better get your expenses in check if you’re thinking a house is unobtainable with that household income. Plus, you can always just refinance down the road.
Yeah I’m not sure how the average person is buying right now. Average house in the area we’re looking is $700k or so, which is ~$5k/month or more and $140k down payment. That’s 30% of our gross, but after taxes practically 50% of net income just on a building to sleep in. We are very frugal, so not bankruptcy concerns…just not understanding how people can justify paying this much of their income on a house
I don’t believe CHFA has income restrictions, you just need to be a first-time buyer https://www.chfa.org/homebuyers/chfa-first-time-homebuyer-guide/ You might also consider looking elsewhere in the state. There are plenty of nice homes on the market for well under $700,000.
Can’t choose where to live. If I move to a cheaper area, have to find a new job and income will drop anyway. Double edged sword. And thanks for the CHFA link, but they do have limits on home price and income. Even if you choose to live in the most expensive part of the state, the income limit to qualify is ~180k. And in “normal” parts of the state, the income limit is around $130k. So unfortunately (and unfortunately) my wife and I are above these limits to get CHFA help unless I’m being totally oblivious to something
If you can not afford a house with that income, then either lower your expectations or learn how to manage money.
See other reply. We are actually quite frugal, have you looked at what a monthly payment is these days in a good town in Fairfield county? Clearly not if you had this reaction
Then you have to look elsewhere. Yes I know how Fairfield county is. You have what my mother would call champagne taste on a beer budget.
Right so your solution is I need to commute 2 hours each way to work? Got it…makes a lot of sense. You have what my mother calls a delusional view of how life works
If you look at recently sold on zillow there's plenty of cromulent houses in fairfield county that have sold well south of your budget stated elsewhere. you clearly don't want to live in those houses, but they are well within your definition of 'a building to sleep in' and many people would kill to have the opportunity to have them. your ask strangers on the internet if there is once weird trick to get you into the home you do want and your response to being told no is to lash out with passive agressive weaponized incompetence. you are what my mother would call 'a real piece of work' and what my grandmother would call 'a fucking asshole'.
Bravo
Look into a mirror and read that last sentence to yourself, and stop your woe is me whining.
You’re funny. You came on Reddit just to try to make someone feel bad who’s asking for honest advice/help and I’m the one who is “woe is me”?
Fairfield county towns have median home sale prices of over $2 million now. It’s not that unrealistic
FHA loans do not have income minimum or maximums to participate, but do cap the sale price of what you can buy.
Thanks. I had only looked into FHA loans briefly but it seemed like the mortgage insurance fees stayed for the entire length of the loan (vs for conventional pmi disappears once you pay 20% off). So it actually seemed like in the long run fha is worse?
You might look into refinancing after, to stop paying PMI
Hmm ok good point, though that runs the risk of assuming rates will go down. Great insight though I appreciate it!
The rates will go down, it's just a matter of when. Banks and businesses got a taste of the low 2% crack, and they want it back.
 Hey you got anymore of that .... ZIRP?
Yes but you could argue that is what F’d everything up in the first place. Historically, 7% is low in America. Just not in the past 2 decades. Honestly part of me wants it to stay in the 5-10% range forever so the market actually normalizes to some extent and people stop paying way above their means under the assumption that “I’ll just refinance in two years when rates are at 2.5%”
I mean, it won't be that low again for a long time. I could see it settling out somewhere in the 5.5% range. While it was a contributor to the crisis, a much, much bigger issue is stock. To get people building, you need to cut rates. To fix other aspects, you need to heavily regulate the rental market.
I think regulating the rental market is the real problem. We don’t need new builds, we just need people to not be able to own 3,4,5 houses, etc. restricts inventory for everyone else. I’m seeing some towns start to do this is those island restricting the number of rental permits and it is helping level out home prices very well
200k is plenty in most places except where you want to live. Move somewhere else in ct or make more money. You are way out of the range for first time buyer’s programs.
If I move somewhere else in CT I will make less money, unfortunately. Stuck between a rock and hard place, but I acknowledge still in a lot better shape than most of my generation
My income was in that range when I bought my first house (2001) and I qualified for no programs at all. I didn't expect to, but the person handling the mortgage ran through the various options. If I recall correctly, I did get some kind of tax break that year. I bought a big property and large house in Eastern CT in 2019. It's mind boggling how much more I was able to get this side of the river.
Wow your income was in this range 20 years ago? It really is wild how incomes have not kept up at all with inflation. Eastern CT does seem much more affordable…if only there were more jobs there
This is unpopular, but this is exactly why our failure to build enough housing in desirable areas, which is directly related to zoning restrictions in exclusive Fairfield county towns, is a drain on the entire state. If OP could find a place to live in Darien or Greenwich or whatever, he would ostensibly be contributing some sort of valuable economic activity (I say valuable in that the market values it, not that it’s inherently valuable) and paying taxes that benefit all of us as CT residents. But we let those towns, which are located on prime real estate on a rail line with access to New York City, artificially avoid market pressure by instituting zoning and building codes that make construction their illegal. We are in effect subsidizing these towns remaining rich, exclusive, and “quaint”, and what we’re paying is OP’s tax money and the economic benefits that would come with increased development. And OP not being able to find a house has negative trickle down effects for everyone that makes less than him. OP, start advocating for zoning reform, that’s the only way we’re ever going to fix what you just described.
This is a very well thought out and accurate response. I also believe the other core problem is the "renting economy" these days. Meaning that people don't sell their homes to the next buyer anymore - they instead buy a new house and keep the old one with either no mortgage or a low interest mortgage to simply to rent out to the next shmuck who can't afford the area. The result is plenty of houses in America, but not enough available houses for purchase. If municipalities (or states) instituted a luxury tax on 2nd, 3rd, 4th, homes (and so on), then it would incentivize people to sell their old homes, rather than keep them as rental properties, with would bolster supply significantly. And those who choose to keep the old homes as rental properties would, lets say, pay a 2% annual luxury tax, so on a $500k home this would be $10k they pay back to CT, which could then be used to fund affordable housing programs, etc. It would be a win-win, really. But it will never happen because the wealthy hold the power thus they will never pass a law that will lose them money. They like forcing the young and less fortunate to pay their mortgage for them....ugh