We already knew that the San Francisco metropolitan area is one of the most expensive in the country in which to buy a home, but now a new report from The National Association of Realtors breaks down how much a homebuyer in the area really needs to earn to qualify for a mortgage. The report puts the median price in the San Francisco metro area, which includes areas like Oakland and Fremont, at $748,300. To qualify for a home at that price with a 10 percent down payment, a buyer would have to make $170,982. With a 5 percent down payment a buyer would have to earn $180,481, and buyers who can put 20 percent down would need an income of $151,984 to afford the median home. Of course, in San Francisco itself those figures are probably much higher, but the report doesn't provide a city-by-city breakdown.
The only place more expensive than the San Francisco metro area is the San Jose metro area, where buyers who can put 20 percent down on the median home would need to earn $176,977. In stark contrast, the national median qualifying income with a 20 percent down payment is just $41,247. The only other areas in the country where a six-figure income is needed are Anaheim, with an income of $128,796 is needed with a 20 percent down payment, and Honolulu, where someone with a 20 percent down payment would have to earn $126,159.
· Home Prices Rise in Nearly All Metro Areas in Second Quarter [National Association of Realtors]