doesn't seem to surprising, high job demand, high salary = low risk to banks.
Some Silicon Valley Tech Workers Get Home Loans with No Money Down
181–190 of 193 posts
Re: Some Silicon Valley Tech Workers Get Home Loans with No Money Down
#182I realize this headline is meant to be inflammatory (look at those entitled people who get it all!), but this practice already exists for medical doctors: http://whitecoatinvestor.com/personal-finance/the-doctor-mor... Basically: "you're about to have a high income and—as a class—have a very low default rate. We'll let you put 0% down and not count your student debt against you". Usually before you get your first pay…
Generalist doctors have a median salary of ~$200k, with specialists earning a median salary of ~$300k. The lenders will have an easier time vetting doctors since almost all of them make a high income with good job security. By contrast, developers have a median salary of ~$95k nationwide and ~$110k in San Francisco according to Glassdoor (or $65k nationwide and $103k in San Francisco according to Payscale). Of course…
>Housing lenders haven't shown poor judgement in the past.
I'm going to assume that this is sarcasm. (If it's not sarcasm, keep in mind all the nonsensical loans that were being given out pre-2008.)
Re: Some Silicon Valley Tech Workers Get Home Loans with No Money Down
#183I realize this headline is meant to be inflammatory (look at those entitled people who get it all!), but this practice already exists for medical doctors: http://whitecoatinvestor.com/personal-finance/the-doctor-mor... Basically: "you're about to have a high income and—as a class—have a very low default rate. We'll let you put 0% down and not count your student debt against you". Usually before you get your first pay…
I don't find the headline inflammatory, nor think the tech-workers are being entitled. I think this practice is a sign of how far the Bay Area housing market has blown up, and how close the Area is to a debt crisis when the unrealistic mortgages can't be paid.
Re: Some Silicon Valley Tech Workers Get Home Loans with No Money Down
#184Earlier quoted context omitted.
Generalist doctors have a median salary of ~$200k, with specialists earning a median salary of ~$300k. The lenders will have an easier time vetting doctors since almost all of them make a high income with good job security. By contrast, developers have a median salary of ~$95k nationwide and ~$110k in San Francisco according to Glassdoor (or $65k nationwide and $103k in San Francisco according to Payscale). Of course…
>Housing lenders haven't shown poor judgement in the past. I'm going to assume that this is sarcasm. (If it's not sarcasm, keep in mind all the nonsensical loans that were being given out pre-2008.)
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Re: Some Silicon Valley Tech Workers Get Home Loans with No Money Down
#185Any advice on where to look for a house in the bay area right now? Like I'm sure a million others, I'm sick of renting in a market where landlords sell and evict every day (happening to me right now, again). Got a kid, need good schools. Other than that, anything goes. I just want to live without constant fear of being upended every 6 months. Is that so much to ask?
I'm in the same boat, rented for my first year back in the bay after living in Seattle for a number of years and my landlord wouldn't let me sign another year long lease(meaning, I'm going to get booted sometime sooner). I just bought a home in Pleasanton and I'll be taking a shuttle to my office(everything in the south bay seems to have them). And, if I change jobs I can make it into SF on bart.
Re: Some Silicon Valley Tech Workers Get Home Loans with No Money Down
#186I realize this headline is meant to be inflammatory (look at those entitled people who get it all!), but this practice already exists for medical doctors: http://whitecoatinvestor.com/personal-finance/the-doctor-mor... Basically: "you're about to have a high income and—as a class—have a very low default rate. We'll let you put 0% down and not count your student debt against you". Usually before you get your first pay…
I found it to be a particularly interesting headline because I thought such things were normal. When I bought my home in 2004 it was not only zero down but on a 7/1 interest only arm at just 1 point above the basis rate with a maximum increase over the life of just 4 points. As a bonus I got $50K out to pay off the boat. Needless to say when the housing market crashed I wasn't freaked out because I had effectively no…
I also bought a house around 2004 with $0 down and actually received a $5000 check when I closed!
Re: Some Silicon Valley Tech Workers Get Home Loans with No Money Down
#187Earlier quoted context omitted.
> it will never make you wealthy. That's lifetime earnings of about $10m before taxes This thread has taught me that people in the valley or the HN echo chamber really sort of have no idea how most people live in this country, let alone around the world.
The average American household (no individual) income is $52,000 (2014). You've got people on HN claiming that making 5x that makes them solidly middle class because they can't afford a home in one of the most expensive places in the world.
Exactly. The parent comment ignores the fact that in their scenario of "only" making $10MM in an entire career, they could spend as much as the average family for 20 years and have $9MM lying around in cash, plus interest. But, supposedly, not be wealthy.
Re: Some Silicon Valley Tech Workers Get Home Loans with No Money Down
#188Earlier quoted context omitted.
Just bought my first house a couple months ago. Despite picking a lender that seemed to have their ducks in a row, I wound up 'at the table' from 9AM to 6:45PM. Everybody involved was surprised it actually got done. Fundamentally broken is an understatement.
We bought a house last year with a credit union, and everyone during closing was quite surprised that we actually closed within two hours of starting. Apparently it is not unheard of for mortgage lenders to be doing final approval up to the day of closing, and keeping people on hold/not answering phones while you and the seller are sitting there twiddling your thumbs.
That was exactly my experience when buying my first home back in 2003. There's a lot of information out there about buying a home, but very little of it is actually useful for first time home buyers, IMO. The mortgage company literally waited until the last minute to approve everything (or the broker waited until the last minute to tell us). Meanwhile, we had no place to stay if it fell through because we'd already ended our lease on the place we were before, and didn't really have the luxury to tack another week or so on closing if there were issues.
Re: Some Silicon Valley Tech Workers Get Home Loans with No Money Down
#189Earlier quoted context omitted.
When I bought my home in 2004 I think the "2004" in your reply is key. Crazy things were happening back then and as you called out, the housing market crashed. I think what freaks people out is that only ~8 years out from the crash, you can already see lending standards getting more relaxed. Didn't we learn anything last time? Not to mention the number of people I've talked to that said "housing always goes up, it's…
> Not to mention the number of people I've talked to that said "housing always goes up, it's a great investment!". "One inflation-adjusted value index between 1928 and 2012 placed the annual rate of appreciation for real estate prices at just 0.2%." [1] Overall, real estate has historically been a bad investment. That said, it does seem like there have been obvious indicators when an particular area is becoming a mor…
Housing looks like a bad investment overall, but housing is local. I have no doubt you can make good money off of a house in a "up and coming" city.
The challenge is, how do you identify an "up and coming" city? Is it the same way you identify and "up and coming" stock? It's all just attempting to time the market.
Re: Some Silicon Valley Tech Workers Get Home Loans with No Money Down
#190Earlier quoted context omitted.
It won't be an exceedingly pleasant place to live when there's no salary left over for food after taxes and rent.
after taxes and rent If you have no money left over for food after rent, do not live here -- full stop. If you have no money left over after taxes, then you are doing your witholding wrong. And the Bay Area isn't some zone-of-enormous-taxation. We've got like 2% more sales tax and maybe 4% for restaurants who are passing on the medical buck.
I am not referring to the present, but the hypothetical "prices continue to rise" the parent comment mentioned.