More households spend half of pay on housing

NEW -> Contingent Buyer Assistance Program
Not stated explicitly that I saw, but I assume they're talking about gross income, as opposed to after-tax income.  If so, that's pretty hard to fathom. 
 
daedalus said:
Not stated explicitly that I saw, but I assume they're talking about gross income, as opposed to after-tax income.  If so, that's pretty hard to fathom.
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I'm not sure how anyone could even qualify for a 50% or more back end payment. That's worse than ramen and water every night, that's cardboard and rainwater.
 
What do you guys think is a healthy percentage of how much your month mortgage payment vs monthly after tax income? Is 25% a good number?
 
IndieDev said:
I'm not sure how anyone could even qualify for a 50% or more back end payment. That's worse than ramen and water every night, that's cardboard and rainwater.
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As the article stated, it may not have anything to do with qualifying.  Shrinking incomes and--for renters and some homeowners--increasing housing costs are moving the ratios.  An acceptable ratio depends on multiple factors.  Consider a childless couple that makes $10k/month after taxes and spends $5k/month on housing.  They're at 50% but don't deserve the sympathy for the poor unwashed masses that the article pulls for.  Atypical, yes, but even a $3k/month couple can get by on only $1500 if they have to.  Depends on priorities.  No one is being forced to pay what they do for housing.
 
daedalus said:
IndieDev said:
I'm not sure how anyone could even qualify for a 50% or more back end payment. That's worse than ramen and water every night, that's cardboard and rainwater.
Click to expand...
As the article stated, it may not have anything to do with qualifying.  Shrinking incomes and--for renters and some homeowners--increasing housing costs are moving the ratios.  An acceptable ratio depends on multiple factors.  Consider a childless couple that makes $10k/month after taxes and spends $5k/month on housing.   They're at 50% but don't deserve the sympathy for the poor unwashed masses that the article pulls for.  Atypical, yes, but even a $3k/month couple can get by on only $1500 if they have to.  Depends on priorities.  No one is being forced to pay what they do for housing.
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Probably a lot of people on this board.
 
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